Individual ownership is a divine rule estimated in terms of asset or benefit, which accordingly enables the owner to utilise the asset and to receive compensation for it. This could be in the form of a person’s ownership of, for example, a loaf of bread or a house. He is able through his ownership of the loaf, to eat it or to sell it. Similarly, through his ownership of the house, He is able to live in it or sell it. In both examples, the loaf of bread and the house are assets. The divine rule concerning them is the Law-Giver’s permission for man to utilise them by consuming them, benefiting from them or exchanging them. The permission of utilisation entails that the owner is able to eat the loaf and live in the house, as well as being able to sell them. With regard to the loaf, the divine rule is estimated by the asset, which is the permission to consume it. With regard to the house, the divine rule is estimated by the benefit, which is the permission to live in it. Ownership is thus defined as the Lawgiver’s permission for utilising the asset. Accordingly, ownership is not established except when the Lawgiver allows it and allows its means. The right of owning the asset does not result from the asset itself, or from its nature by being either beneficial or harmful. Rather it results from the permission of the Lawgiver, and from His  allowing of the means that permits an asset to be legally owned. By this, the Lawgiver permits the ownership of some assets and prohibits the ownership of others. He also permits some contracts and prohibits others. Thus, the Lawgiver prohibited the ownership of wine and pigs by Muslims, and prohibited the ownership of property acquired through usury and gambling by any citizens of the Islamic State. He permitted selling, thus making it Halal, and prohibited usury thus making it Haram. He permitted the company of ‘Anan (partnership by body & finance) and prohibited co-operatives, joint stock companies and insurance.

Legal ownership has conditions and its disposal has constraints. Ownership should not interfere with the interests of the community or the interests of the individual who is part of a community and living in a particular society. Utilisation of the owned asset only comes about through the Lawgiver, Who grants it to the individual by following the divine means. Ownership is the Lawgiver’s assignment to an individual in the community of a particular thing, which He would not otherwise have the right to own.

However the ownership of an asset is ownership of the asset itself and of its benefit. The real aim of the ownership is to utilise the asset in a manner enjoined by the Shar’a.

In light of this definition of individual ownership, it can be understood that there are legal means of ownership. It can also be understood that there are certain methods for the disposal of this ownership and a certain manner in which owned things may be utilised.

Incidents that are considered to be an aggression against the right of individual ownership may therefore be understood. Thus the true meaning of possession which the Lawgiver defined as the striving for a possession as well as its utilisation is understood as the true definition of ownership. In other words, the true definition of ownership indicates the true meaning of ownership.

It is part of man’s nature to work so as to satisfy his needs and to possess property in order to satisfy these needs and accordingly to strive for this possession. Satisfying man’s needs is an inevitable matter that man cannot desist from. In addition to being part of man’s nature, man’s acquisition of wealth is thus an inevitable matter. Any attempt to prevent man from possessing wealth would be contradictory to his nature and any attempt to restrict his possession to a certain quantity would also be contradictory to human nature. It would, therefore, be unnatural to stand between man and his acquisition of wealth, or to stand between Him and his efforts to achieve this acquisition.

This acquisition should not, however, be left to man to achieve, strive for, or dispose of as He wishes, as this would cause evil and corruption resulting in anarchy and disorder. This is inevitable due to the disparity between people in their abilities and in their needs for satisfaction. If they were left to their own devices, only the strong would acquire the wealth and the weak would be deprived of it; the sick and the incapable would perish and the greedy would be excessive. Enabling the people to acquire wealth and strive to achieve it must therefore proceed in a way that guarantees the satisfaction of the basic needs for all the people. It should also guarantee the possibility of people being able to satisfy their desire to acquire luxuries. It would, therefore, be imperative to confine this acquisition to a specific method, in which simplicity is achieved, so as to make the acquisition within reach of all people despite the disparity in their abilities and their needs. This method would also conform to human nature so as to satisfy the basic needs and enable people to fulfil their luxuries. It would thus be imperative for the ownership to be determined in quality and to resist the abolition of ownership, as this contradicts human nature. It is also necessary to resist the confinement of ownership to specific quantities, as this restricts man’s striving to acquire wealth, thus contradicting his nature. The freedom of ownership should also be challenged as it causes evil and corruption resulting in chaotic relationships between people. Islam allows individual ownership and defines its method rather than its quantity, in accordance with human nature. It also organised the relationships between people and thus enabled man to satisfy all of his needs.

From analysing the divine rules related to the economy, it is evident that Islam addresses the issue of enabling people to utilise wealth. This is the Islamic view regarding the economic problem of society. When addressing the economy, it deals with the initial acquisition of wealth, its disposal and its distribution amongst the public. The rules that deal with the economy are thus based on three principles:

1. Initial ownership,

2. Disposal of the ownership, and

3. Distribution of wealth amongst the people.

With regard to the issue of ownership, it belongs to Allah (swt), since He (swt) is the Owner of all the Dominion (Malik al-Mulk). He (swt) has stated in the texts that property (Maal) belongs to Him. He (swt) said:

“And give them from the property of Allah, which He gave to you.” [An-Nur: 33]

Property, therefore, belongs to Allah (swt) alone. However, He has put mankind in charge of property, provided them with it, and has given them the right of owning it. Allah, the Exalted said:

“And spend from what He put you in charge of.” [Al-Hadid: 7] And He (swt) said:

“And He has provided you with properties and offspring.” [Nuh: 12] Clearly, when Allah addresses the issue of the origin of property, He attributes its ownership to Himself, and says:

“...the property of Allah...” [An-Nur: 33]

Allah (swt) addresses the issue of transferring the property to human beings, He (swt) attributes the property to them and says:

“Give them their properties.” [An-Nisa: 6] And:

“Take from their property.” [At-Tauba: 103] And:

“So for you is your principal sum.” [Al-Baqarah: 279] And:

“And property you possessed with hard work.” [At-Tauba: 24] And:

“And his property will do Him no good.” [Al-Lail: 11]

However, the right of ownership of property that came through its deputation (Istikhlaf) is general for all humans. This is not, however, the actual ownership, it is only the right of ownership. They are deputised to in terms of the right of ownership. Actual ownership by a particular person takes place when the Islamic conditions of ownership are met, such as obtaining the permission of Allah (swt). The actual ownership of property thus takes place when an individual obtains the Legislator’s permission to possess that property. This permission is a specific proof that the individual becomes the owner of that property. Assigning (deputising) all mankind for ownership (of property) is established by the general (’Aam) evidence, and this proves the right of ownership. Assigning an individual to the actual ownership (of a certain property) is made possible by the specific permission, which the Legislator gives to the individual.

The Legislator has stated that an individualistic type of ownership exists where each individual has the right to possess through one of the allowed means of possession. Abu Dawud narrated from the Sunnah that the Prophet (pbuh) (pbuh) said: “Whoever surrounded a piece of land with a wall, then it becomes his.” There is also a type of public ownership by the entire Ummah. Ahmad narrated from a man from the Muhajireen that the Prophet (pbuh) (pbuh) said: “People share in three things: Water, Pasture lands, and Fire.” There is also, in fact, State ownership.When a Muslim dies with none to inherit from Him or her, then his or her property goes to the State Treasury (Bait ul-Mal). Whatever is collected of Kharaj or Jizya, also belongs to the Treasury. Anything that goes to the State Treasury, is for the State to decide upon except for zakat. The State has the right to deal with its property as it sees fit, according to the divine rules Islam has set the means through which the individual, the public and the State can possess property. Any means beyond these is forbidden.

With regard to the disposal of the ownership, the State handles public property on behalf of the people, as it is their representative. Islam has however forbidden the State from exchanging or granting the deed or title of public property. Any disposal of public property, other than these two, are allowed and must be in accordance with the Divine Rules.

The State’s and the individual’s properties are disposed of according to the rules pertaining to the Bait ul-Mal and the rules of transactions, such as selling or pawning. Islam has allowed both the State and the individual to dispose of their properties by exchange or grant in accordance with the divine rules.

The distribution of wealth amongst the people is carried out naturally through the means of ownership and contracts. The natural differences among people in their abilities and in their tendencies to satisfy their needs result in variations in wealth distribution among them. This could result in the possibility of poor distribution where wealth is concentrated in the hands of the few, while the rest of the people are deprived of it. The hoarding of gold and silver, which are the standards of exchange could also occur. Islam has, therefore, forbidden the circulation of wealth amongst the wealthy only. Islam, in fact, obliged that wealth be circulated amongst all the people. Islam also forbade the hoarding of gold and silver, even if a portion of the individual’s gold and silver had been given out as Zakat.

The economic policy is the objective of the laws which deal with the management of human affairs. The economic policy in Islam is to secure the satisfaction of all basic needs for every individual completely, and to enable Him to satisfy his luxuries as much as He can, as a person living in a particular society, which has a certain way of life. So Islam looks at every individual by himself rather than the total of individuals who live in the country. It looks at Him as a human being first, who needs to satisfy all of his basic needs completely, then it looks to Him in his capacity as a particular individual, to enable Him to satisfy his luxuries as much as possible. Islam looks to Him at the same time, considering Him a person linked with others by certain relationships run in a certain way, according to a particular fashion. The purpose of the economic policy in Islam is not to only raise the standard of living in the country without looking to secure the rights of life for every individual completely. Nor is it just to provide the means of satisfaction in the society, leaving people free to take from such means as much as they can, without securing the right of livelihood for each individual. Rather, it addresses the basic problems of everyone as a human being, who lives according to particular relationships, then enabling Him to raise his standard of living and achieve comfort for himself, according to a particular fashion of life. As such it is different from all other economic policies.

While putting the economic rules for the human being, Islam relates the legislation to the individual to secure the right of livelihood and to secure the luxuries, while it verifies that the society has a special way of life. So, it takes into consideration what the society should be, at the same time it seeks to secure livelihood and to enable satisfying luxuries. It makes its view towards what the society ought to be as a basis for its view towards the livelihood and prosperity. Therefore, one will find that the divine rules (Ahkam Shari’ah) have secured the satisfaction of all of the basic needs (food, clothing and housing) completely, for every citizen of the Islamic State. This is achieved by obliging each capable person to work, so as to achieve the basic needs for himself and his dependants. Islam obliges the children or the heirs to support the parents if they are not able to work, or obliges the State Treasury (Bait ul-Mal) to do so, if there is nobody to support them. As such, Islam requires that the individual secures for himself and his dependants the satisfaction of the basic needs i.e. adequate foodstuffs, clothing and housing. Islam then encourages the individual to secure the luxuries of life as much as He can.

Islam also prevents the government from taking property through the imposition of taxes, except in cases where it is obligatory upon all Muslims to care for e.g. famine or Jihad. Tax then is taken only on the wealth which exceeds that which each individual normally uses to satisfy his basic needs and luxuries. In this way, it achieves the right of livelihood for everyone individually, and facilitates the securing of the luxuries. At the same time, Islam sets certain limits within which the individual can earn in order to satisfy his basic needs and luxuries, and organises his relationships with others according to a particular fashion. So Islam prohibits the production and consumption of wine by Muslims, and it does not consider it an economic material. Islam prohibits the taking of riba (usury, interest, etc.) and its usage in transactions for everyone who holds Islamic citizenship. It does not consider Riba as an economic commodity, whether for Muslims or non-Muslims. So Islam considers what the society ought to be when utilising any property as a fundamental basis for utilising the economic commodity.

Islam did not detach the individual from being human, nor the human being from being a particular individual. Furthermore, Islam does not consider what the society ought to be separate from the issue of securing the satisfaction of the basic needs for every individual, and enabling Him to satisfy his luxuries. Rather, Islam makes the satisfaction of the needs and what the society ought to be, as two inseparable matters from each other, but by making what the society ought to be as a basis for satisfying the needs. For the sake of satisfying all the basic needs completely, and to enable satisfaction of the luxuries, the economic commodity should be available to people, and it will not be available to them unless they strive to earn it. Therefore, Islam urges people to earn, seek the provision and strive. And it made striving to earn the provision compulsory. Allah (swt) said:

“So walk in the paths of the earth and eat of His sustenance which He provides.” [Al-Mulk: 15]

However, this does not mean that Islam interfered in the production of wealth, or that it demonstrated the technical matters related to increasing production, or the amount of production, because it has nothing to do with production. Rather it only encourages on working for the earning of property. Many Ahadith came to encourage the earning of property. In one Hadith, the Prophet (pbuh) Muhammad (pbuh) shook the hand of Sa’ad ibn Muadh (ra) and found his hands to be rough.When the Prophet (pbuh) (pbuh) asked about it, Sa’ad said: “I dig with the shovel to maintain my family.” The Prophet (pbuh) (pbuh) kissed Sa’ad’s hands and said: “(They are) two hands which Allah loves.” The Prophet (pbuh) (pbuh) said: “Nobody would ever eat food that is better than to eat of his own hand’s work.”

It was also narrated that Umar b. Al-Khattab (RA) passed by some people, who were known as readers of the Qur’an. He saw them sitting and bending their heads, and asked who they were. He was told: “They are those who depend (Al-Mutawwakiloon) upon Allah (pbuh).” Umar replied: “No, they are the eaters who eat the people’s properties. Do you want me to describe those who really depend upon Allah (Al-Mutawwakiloon)?” He was answered in the affirmative, and then He said: “He is the person who throws the seeds in the earth and then depends on his Lord The Almighty, The Exalted (‘Azza wa jalla).”

Thus we find that the verses and the Ahadith encourage striving to seek provision, and working to earn property, just as they encourage the enjoyment of the property and eating of the good things. Allah (swt) said:

“Say: who has forbidden the beautiful gifts of Allah, which He has provided for His servants, and the things, clean and pure, (that He has provided)?” [Al-A’raf: 32] And:

 “And let not those who are niggardly, who withhold the gifts which Allah has given them from His Grace, think that it is good for them. Rather it is worse for them. That which they hoard will be their collar on the Day of Resurrection. To Allah belongs the heritage of the heavens and the earth, and Allah is informed of what you do.” [Al-Imran: 180] And:

“O you who believe! Spend of the good things which you have earned, and of that which We bring forth from the earth for you.” [Al-Baqarah: 267] And:

“O you who believe! Do not prohibit the good things which Allah made halal for you.” [Al-Ma’idah: 87] And:

“And eat of that which Allah provided for you, halal and good.” [Al-Ma’idah: 88]

These verses, and the like, denote clearly that the divine rules (Ahkam Shari’ah) related to the economy, aim at acquiring property and enjoying good things. So Islam obliged individuals to earn, and ordered them to enjoy wealth that they earned, so as to achieve economic growth in the country, to satisfy the basic needs of every person, and to enable the satisfaction of his luxuries.

In order to facilitate the acquisition of property, we find that Islam puts the rules related to the manner of possessing wealth without any complications. So it made the manner of possessing property very easy. Thus Islam defined the legal means of ownership, and it defined the contracts through which property ownership is exchanged, and left man free to develop the styles and means by which He earns, and it did not interfere in the production of the wealth.

Islam defines the legal means of ownership and contracts in general guidelines that include legal principles, and rules, under which numerous issues belong and against which numerous rules are measured by analogy (Qiyas).

Thus it obliged work, put its detailed rules, and left the person to work as a carpenter, manufacturer, technician, trader, etc. The gift is legislated in such a way that donation can be compared to it by analogy in terms of being a means of ownership. Employment was legislated in such a way that representation (Wakala) can be compared to it by analogy in terms of being entitled to compensation. Thus we find that the means of ownership and the contracts are detailed by Shari’ah in general outlines and set in such a way as to include any contemporary incidents; yet they do not allow for any new type of transactions. It is obligatory that people restrict themselves to the transactions that are defined by the Shari’ah, which apply to new incidents however numerous.

As such, the Muslim proceeds steadily in earning property, without being faced with obstacles, which prevent Him from earning through Halal means. Thus, the satisfaction of all basic needs is possible for every person. Islam not only urges the individual to earn, it also requires the State Treasury (Bait ul-Mal) to be responsible for the support of all the citizens. So it made the support of the mentally or physically disabled as the State’s responsibility, and it made the provision of the basic needs of the nation (Ummah) as one of its duties, because the State is obliged to look after the affairs of the Ummah.

Bukhari narrated from Ibn Umar: The Prophet (pbuh) (pbuh) said: “The Imam is in charge (ra’i) and He is responsible for his citizens.”

In order for the State to perform the duty placed on it by the Shari’ah, the Shar’a gave the State the authority to collect certain revenues such as the head tax (Jizya) and the land tax (Kharaj), with Zakat also to be collected by the State Treasury (Bait ul-Mal). The State also has the right to collect funds for those services which are a duty upon the Ummah, such as the repair of roads, building hospitals, feeding hungry people, and the like.

The Shar’a made the State responsible for the management of public property. The Shar’a prevents individuals from running public property on their own, because the overall responsibility is for the Imam, and none of the citizens is entitled to assume this responsibility unless He was designated by the Imam. The public properties of water, oil, iron, copper and the like, are properties which must be utilised in order to achieve economic progress for the nation (Ummah), because these properties belong to the Ummah, and the State is merely in charge of them for their administration and development. When the State supplies funds, and discharges its duty of looking after the affairs of the people, and when every capable individual earns property, then abundant wealth becomes available for the satisfaction of the individuals basic needs completely, and the luxuries.

However, the economic progress through motivating every capable individual to work, assigning properties to the State and the investing of public property, all that is a means to satisfy the needs, not for the sake of having property for itself, nor for boasting, nor to spend it in sin, nor for arrogance and oppression. That is why the Messenger of Allah (pbuh) said: “Whosoever sought the life (matters) legitimately (halal) and decently He will meet Allah (swt) with his face as a full moon; and whosoever sought it arrogantly and excessively He will meet Allah while He is angry at him.” The Prophet (pbuh) (pbuh) also said:“Do you have, son of Adam, of your property except that which you ate and consumed, that which you wore and exhausted, and that which you donated and kept (for yourself)?” Allah (swt) the Supreme said:

“Don’t commit Israaf (spending or going beyond the limits imposed by Islam); surely He does not like those who condone Israaf.” [Al-A’raf: 31]

Islam made the aim of owning property a means towards satisfying the needs and not for the purpose of boasting. It also made managing the economy as a whole according to Allah (swt)’s orders obligatory. It ordered the Muslim to seek the Hereafter through what He earns and not to forget his share of this worldly life. Allah (swt) said:

“But seek the abode of the Hereafter in that which Allah has given you, and do not neglect your portion of worldly life, and be kind even as Allah has been kind to you, and seek not corruption in the earth.” [Al-Qasas: 77]

The philosophy of Islamic economy dictates that all economic actions are according to the commandments of Allah (swt), based on recognising the relationship with Allah (swt). The idea upon which the management of the Muslims affairs in society is built, is directing the economic activities according to the divine rules (Ahkam Shari’ah), as a complete way of life (Deen). Similarly, the management of the affairs of the other (non- Muslim) citizens of the State restricts their economic activities according to the divine rules. It permits them whatever Islam has permitted, and it forbids them of whatever Islam has prohibited. Allah (swt) said:

“And whatsoever the Messenger gives you take it, and whatsoever He forbids you abstain from it.” [Al-Hashr: 7] And He (swt) said:

“O mankind! There has come unto you an exhortation from your Lord, a cure for that which is in the breasts.” [Yunus: 57] And He (swt) said:

“And let those who withstand his (the Messenger’s) order beware, lest some trial or painful punishment befall them.” [An-Nur: 63] And He (swt) said:

 

“And rule between them with that which Allah revealed.” [Al-Ma’idah: 49] Islam secured the observance of these rules by motivating the Muslim to adhere to this economic policy through the fear of Allah (swt) (Taqwa), and the abiding of the people, in general, to it through the legislated laws which the State implements upon the people. Allah (swt) said:

“O you who believe! observe your duty to Allah and give up what remains (due to you) from riba, if you are (in truth) believers.” [Al-Baqarah: 278] And He (swt) said:

“O you who believe! When you contract a debt for a fixed term record it in writing...” [Al-Baqarah: 282] until He (swt) says:

“....save in the case when it is actual merchandise which you transfer among yourselves from hand to hand, in that case it is no sin for you if you write it not.” [Al-Baqarah: 282]

Islam thus explained the way in which these rules are implemented and the way in which people’s adherence to these rules is guaranteed.

This demonstrates how the economic policy in Islam is built on satisfying the needs of every individual, as a human being who lives in a particular society, and on earning the wealth to provide that which satisfies the needs. The economic policy in Islam is also established on one idea, which is the implementation of all actions according to divine rules. It is implemented by every individual through motivating of his fear of Allah (swt) and applied by the State through culturing the people and through implementing laws.