Many of the problems faced by the world’s populations have their roots in the field of economics. As a result of mis-management of the distribution of the vast resources that the earth produces, we see widespread poverty, starvation and homelessness. Most of the wealth is retained in the hands of a tiny minority, who maintain their grip by corruption and oppression of the people.

This is the case even in so-called ‘civilised’ nations like Britain and the USA. The evidence is clear for all to see on the streets of inner cities where extravagant buildings tower above while their doorsteps are full of homeless people who have no other place to sleep.

In the Muslim countries the situation is even worse. The puppet regimes in countries like Saudi Arabia, Pakistan, Egypt, Morocco - the list goes on, are controlled by a few tiny families who, driven by their own greed and selfish desires, bow to the whims and fancies of the Western powers. While they are installed in palaces, the populations live lives of hardship where even day to day existence is a struggle.

All this while organisations like the IMF and the World Bank, the tools of economic colonisation, milk the wealth of the Muslim Ummah without any resistance.

The only way out of this dire situation is to bring about the economic justice of Islam. The Economic System of Islam is a comprehensive mechanism for the fair distribution of the wealth of the world. It does not discriminate between rich, poor, Muslim or non-Muslim. Its only concern is to eliminate the oppression which ensues from the corruption of man-made rules.

Study the history of the Islamic State and see how under its rule, its citizens enjoyed prosperity and security. Human beings were cared for - they were housed, well fed and their lives were elevated to a standard of dignity. Contrast that with the predicament of people today.

The beauty of the Islamic way of life has been hidden away from us for decades. It can be enjoyed again by the Muslims and non-Muslims alike, when the Systems of Islam are implemented once more.

The most fundamental aims of the economy of any nation is to provide an adequate supply of goods and services for its citizens and to enable each citizen to acquire and use them to raise their standard of living. This requires that wealth be created in the form of usable goods and services and that people get the means of owning and/or using these goods or services.

The most fundamental aims of the economy of any nation is to provide an adequate supply of goods and services for its citizens and to enable each citizen to acquire and use them to raise their standard of living. This requires that wealth be created in the form of usable goods and services and that people get the means of owning and/or using these goods or services.

The degree to which these aims and objectives are met and the efficiency with which the citizens of the State participate depend on the specific rules of engagement, namely the economic policy which the nation implements.

Apart from the general ideological framework upon which the economic system is based, the key ingredients for the economic success of any nation include: 1) Confidence in and stability

1) Confidence in and stability of the system.

2) Workability of the system by providing appropriate economic incentives for wealth creation and distribution.

3) A just method of distribution (i.e. circulation of wealth).

Although only the Capitalist economic system is practised in the world today, the Islamic Economic System gives the best rules of engagement in economic activity and would be the most successful towards raising the standard of living of any nation.

Confidence and Stability

Economic activity by its very nature is risky as those who partake in it directly can gain or lose wealth. Hence in all economic systems, there is always an understanding by those who participate that they may lose

their capital or effort. However, there are other phenomena that adversely affect the economic life of a nation by artificially creating an atmosphere of insecurity, and thereby reducing the level of economic activity. These arise because of the specific economic system implemented, for example in the Capitalist system, we find :

i) Booms and Busts: In the Capitalist system, periods of good and bad trade have become evident from the records. Although opinions differ widely among economists on the conditions responsible for trade fluctuations, a common feature is that the root cause of these conditions stems from the foundations of the Capitalist economic system.

ii) Runaway Inflation: The fact that money continually loses its value has become an intrinsic part of Capitalist economies. Here again there are many opinions from economists as to what causes runaway inflation. But the recipe for runaway inflation lies at the heart of established financial controls in the Capitalist system.

iii) Money market crashes: These occur irregularly in the form of sudden exaggerated changes in foreign exchange rates and sudden falls in share prices.

The most fundamental characteristics of the Capitalist economic system which forms the root of these phenomena are speculation and false representation. These are manifested in, for example, the artificial creation of money.

As such, there is nothing to prevent governments from literally creating money at will. Excessive creation of paper money which cannot be represented by real wealth is the root cause of inflation. Further, governments and banks refer to this blandly as increasing money supply, i.e. they have printed more money while the assets the money represents remain constant.

In addition, high street banks can lend money that is not existent by crediting peoples accounts on paper. This false representation that is meant to keep the system going actually creates more artificial money.

In Islam it is prohibited for the State to artificially alter the supply of money which is based on real tangible assets (gold and silver). Therefore there is no increase in money supply beyond real increases in wealth and accordingly inflation is not a problem. In such an environment businesses have far greater stability and bust/boom, inflationary/ recessionary cycles will not occur. In Capitalist economies governments often use instability in money supply as a form of additional taxation upon the people. As the value of their earnings or assets and savings rapidly plummet there is a massive transfer of value to the government/ banking system that controls the currency. The ex-Yugoslavia and Russia are recent examples of economies where governments used hyperinflation for these ends. That inflation may be 2-6% in many western countries is little comfort as it is still eating of the wealth of the people.

In conclusion, the above points clearly outline certain fundamental differences between the Capitalist economic system and the Islamic Economic System. The inherent failing of Capitalist economies can be seen today throughout the world, even in the Muslim countries, where it has been forcibly applied by corrupt rulers. The details of Islamic economics should fill us with confidence that Islam provides solutions to the ‘economic problem’, which the world around us currently faces.

The Muslims at the time of the Messenger of Allah (saw) had taken units of gold and silver as the basic monetary currency and used both of them simultaneously. They used the Byzantine dinars and Persian dirhams as their currency and did not forge their own currency from the time of the Messenger of Allah (saw), until ‘Abdul Malik ibn Marwan came. In his period of leadership ‘Abdul Malik issued a special Islamic currency and made it of a particular shape and type and patterned it with distinctive markings. He based it on the unit of gold and the unit of silver with the weight of the Shari‘ah dinar and dirham.

Islam has enunciated divine laws with respect to gold and silver; it considered them to be gold and silver elements and currency and coins, and the prices for things, or the wages for work, and it prohibited their hoarding and attached to them specific and unchanging laws. It prescribed zakat on them; it considered them to be two forms of money, and it assigned the nisab (minimum amount of money for zakat) in dinars of gold and dirhams of silver. And when Islam imposed diyyah (blood money), it made the payment to be by this currency and prescribed an amount in gold, that is one thousand dinars and an amount in silver, that is twelve thousand dirhams. And when Islam obliged the cutting of a hand for theft, it laid down the amount on which the thiefs hand is to be severed as one quarter of a dinar of gold, or three dirhams of silver. Similarly, when it laid down rules for exchange in currency matters, it defined them in terms of gold and silver.

The connection of Islam with these Shari‘ah rules for gold and silver as two currencies and as a means for exchange and as a price for goods is by the agreement of the Messenger of Allah (saw) who made gold and silver alone the standard unit of currency by which the prices of goods and the wages of work are estimated.

This indicates that Islam considers currency as gold and silver, because all the rules which are connected with currency have been connected with gold and silver.

Therefore, it is essential for Muslims to have their currency in gold and silver, and it is the duty of the Islamic state to make its currency gold and silver and to work on the basis of gold and silver as it was during the time of the Messenger of Allah (saw) and his Khulafa‘a after him. It is the duty of the state to mint dinars and dirhams in a shape and style unique to the Khilafah, and to fix the weight of dinars equal to the Shari‘ah dinar as the weight of one Miskal (or 4.25 grams for one dinar), and to fix the weight of one silver dirham as the “weight of seven” (i.e. every 10 dirhams has the weight of 7 Miskal).

The basis of gold and silver as currency is the only way to solve currency related economic problems and the high inflation rates that are common in the world, and to produce currency stability for rates of exchange and progress in international trade. Only by taking gold and silver as the standard, can the American control and the control of the dollar as an international currency, be demolished in international trade and world economies. By returning to gold as the basic currency, the dollar will lose its influential status in the world.

All of the revenues of the State are collected in the Bait al-Mal, from where the various functions of the State are funded.The matters for which the funds are allocated are all decided by the view of the Khaleefah and his ijtehad.

The expenditure of the Bait al-Mal is centred around the following six categories :

1. The Bait al-Mal has a special account in which the money of zakat is collected. The eight categories of people entitled to partake of the zakat funds are supplied from this account.
2. The poor, the needy, the travellers, the debtors and jihad are funded from other sources of revenue whenever there are insufficient funds in the zakat account. When there are inadequate funds even from these other sources, the debtors are not to receive assistance. The poor, the needy, the travellers and jihad must be funded from the extra taxes collected for this purpose; and if required - to prevent them falling into corruption - they are to be funded from loans raised by the State for this purpose.
3. The Bait al-Mal must fund those people who perform certain duties or services for the state, such as employees, rulers or soldiers. If there are insufficient funds for this purpose, taxes must be collected immediately to meet their expenses, and loans should be raised if it is feared that corruption might ensue.
4. The Bait al-Mal shall fund the essential services and utilities such as the roads, mosques, hospitals and schools. If there are insufficient funds, taxes must be collected to cover their cost.
5. Non-essential services and utilities are funded by the Bait al- Mal, but when funds do not allow, these are not financed and are accordingly delayed.
6. The necessary measures for dealing with disasters, such as earthquakes and floods, must be financed by the Bait al-Mal; if there are insufficient funds, loans should be raised immediately, and will be repaid later from the taxes.

In cases where the State must resort to taking out loans to fund necessary activities, these will be primarily from its wealthy citizens. Foreign loans, which may allow the kaffir to have some kind of authority over the Muslims or control of her affairs, will not be undertaken.

It is absolutely forbidden to open banks in the Islamic State.The only bank permitted in the Islamic State is the state bank which is a department of the Bait al-Mal. It does not deal in riba (interest) and its function is to provide financial loans in accordance with the Shari‘ah rules and to facilitate financial and monetary transactions.

There are various types of taxes and revenues by which the State may fund its operations. In all cases of taxation, these can only be levied from those who can afford to pay. Thus, there is no taxation of the poor, which is seen in the Western nations in the form of, for example VAT or council tax. The sources of revenue for the state include :

1) Taxation

There are three main regular taxes that the State levies from its citizens (excluding the zakat, which is a part of the ibadah).

1. Jizyah - Is a tax on mature male non-Muslim citizens who are able to pay it. This is much less than any tax on Muslim citizens.
2. Ushr - Is a tax levied on unconquered land under the jurisdiction of the State, at the rate of one tenth of the produce if the land is irrigated by rain, or one twentieth if it is artificially irrigated.
3. Kharaj - Is a tax levied on conquered land, whose rate is fixed by the Khaleefah.

Non-Muslims do not pay any tax except the Jizyah. The Muslims pay taxes on condition that they are levied upon that which is surplus to the individuals conventional needs.

As well as these regular taxes, the State has the right to collect additional tax from the Muslims when the funds of the Bait al-Mal are inadequate to cover the expenditure required to undertake all the functions which the Shari‘ah has obliged the Muslims to perform, such as provision of food, shelter and clothing to all the citizens, or to meet the needs of emergencies like floods, or earthquakes. The State is not allowed to impose a tax upon the people for a function which the Shari‘ah has not obliged the Muslims to undertake. Thus, the State is not allowed to collect fees for the courts or departments or administrations, or for accomplishing any interests such as building new dams or other facilities when they are not essential.

2. Other Sources

There are a variety of other sources of revenue for the state. These include the Following :

1. Fa‘i - Property captured from the enemy without fighting.
2. Ghanima - Booty captured from the enemy after fighting.
3. Khumus - The fifth part of the booty.
4. Revenue from Public Property, such as natural resources.
5. Thoghoor - Customs levied at the States borders.
6. Revenue from State Property like land, buildings etc.
7. Rikaz - A fifth of hidden treasures and small minerals. h. The wealth of people dying without heirs.

The ways of increasing the wealth are a separate issue from providing the needs, as it deals with generating the wealth and not with the human needs, so it differs from one country to another. In Muslim countries, it is approached and dealt with chiefly by finding ways in which to improve the agricultural products, to launch an industrial revolution, so that industry becomes the main method used in economic development and growth, ant to increase commercial productivity. This approach may be divided into four sections :

1. The agricultural policy
2. The industrial policy
3. The financing of projects
4. Creating an external market

The Agricultural Policy

This is based on increasing the yield and variety of farm produce, and usually follows two methods : a) finding means of increasing productivity of the land, and b) increasing the farming lands as a method of expansion.

These take place by using modern and sophisticated machinery, chemicals and by providing high quality seed. The State should provide grants (as opposed to loans) to the farmers who are unable to buy what they need in terms of machines, seed and chemicals, and it should also encourage those who are able, to buy such materials.

The expansion takes place by encouraging the revival of barren land and cultivating it. The State should grant feudal lands which are improperly used or left unused, to farmers who are able to work but have no land or little land, and from lands that are under its control. Anyone neglecting his land for three consecutive years would be forced to give it up to the State, which would allocate it to people who would make use of it. Imam Abu Yusuf narrated that : “Muhammad ibn Ishaque related to me that ‘Umar ibn al-Khattab said addressing the people on the pulpit : ‘Whoever receives a dead land, (it) would belong to him and whoever constructs a boundary wall, has no right over it after three years. This was because the people used to enclose land which they did not cultivate.’” (Kitab al-Kharaj).

By following these two methods, an increase in farm produce would be achieved, and the aim of the agricultural policy would be realised.

There are, however, issues to be considered while implementing such a policy. Once increased productivity is ensured, improving the quality of the produce has also to be considered. The policy of improving productivity has to be achieved by modernising the machinery; this necessitates the launching of an industrial revolution to match the ambitious agricultural programme, with industry providing the main means of progress.

Therefore, the agricultural policy should have three main aims in its bid to improve productivity:

1. Improving food products, with the aim of satisfying the needs of the people, and to remove the spectre of famine in case of drought, failing crops or economic embargo. Efforts should be made to improve and increase productivity of food products in both agricultural and animal produce.
2. Increasing productivity in clothing materials such as cotton, wool and silk, for these are basic necessities that should be made available without having to resort to imports and without creating a shortage in case of economic embargo.
3. Improving the production of goods which would have a market abroad, whether they were textiles or food products, like citrus fruits, dates etc.

Development projects like the building of dams, canals, wells and others are to be given priority if they were indispensable, for the aim is not only to launch an agricultural revolution, but an industrial one, without neglecting the agricultural but always working towards increasing production; the aim also is to achieve material progress, and this cannot be realised without an industrial revolution.

The Muslim world is underdeveloped with an economy based solely upon agriculture and other natural resources, and there are scarcely any industries. Therefore, an immense effort is needed to put the industrial revolution into motion. The schemes of the colonial powers should be abandoned, for they aim at keeping the Islamic world relying solely on agriculture by encouraging such a policy and impeding its industrial progress to keep it dependent on the West, who provide most of the machinery and are the only source of maintenance.

It is worth mentioning here a basic economic principle in Islam that says, “Anything that reaps benefit to the Ummah should be provided for if funds were available, provided that it is not indispensable.” This means that if the State had funds available, then the project should be funded, but if the State did not have funds, it should not impose taxes upon the people in order to finance the project, nor borrow money for it, even from its own citizens.

The Industrial Policy

The main aim of the industrial policy is to make the country an industrial one. The direct route towards achieving such an aim is to first of all manufacture the machines; then other industries can be introduced. The priority would be given to build factories to manufacture machines. There is no other way to turn the country into an industrial force. Only then can industries which rely on the machines produced (i.e. manufactured) locally, be established.

To claim that the manufacturing of machines takes a long time and that we should begin by introducing the light industries, is baseless and a recipe for disaster; it is a plan schemed by the West to impede the main initiative of the Islamic world, and to keep it concentrating on consumer goods industries and as a market for Western industries.

It is also wrong to believe that this venture is unfeasible because it requires industrial personnel which are not available. Firstly, Muslim countries have a large surplus of trained and qualified personnel who have no jobs due to unavailability of technology and industry in their own countries. These people would be used by the Islamic State for participation in the industrialisation process. Additionally, industrialised countries have a surplus of industrialists, engineers and technicians who can be contracted while the Muslim youth are trained to acquire such knowledge.

Therefore, efforts should not be wasted in light and consumer industries while the drive towards achieving the industrial revolution is still under way. Thus, the first step would be to manufacture the machines. This policy should be pursued simultaneously and not stage by stage. We should not wait until we reach one stage before we start another; because these obstacles that would delay our progress are imaginary.

What the Muslims possess nowadays in terms of consumer industries should be maintained as they are, without attempting to expand, but rather the concentration should be upon launching the industrial revolution. The import policy can remain in force according to the Islamic economic policy, until such machines are locally manufactured. Even the state industries like mining would have to follow the same strategy. The State, being the only legal owner of such industries under Islamic law (such as oil, minerals and other natural resources) would not buy machines to extract minerals, for this would divert its efforts from manufacturing such machines and thus impede the industrial revolution.

The State would rather buy the raw materials and maintain the existing factories and plants until such time as the machines can be locally manufactured. The huge profits from such resources of the Muslim Ummah, instead of being usurped by the Western nations and the corrupt rulers of Muslim countries, would be diverted towards providing the basic needs of the people and funding the industries.

Financing the Projects

The economic policy in Islam has undoubtedly determined the projects which the State should adopt, and those which the individuals should adopt. The agricultural policy falls into the private sector, and there is no place for the public sector in this area, except in offering farmers grants and financing building projects and developments, like dams, canals and channels.

The industrial policy is open to the private sector as well, except where the industries are linked to resources that fall under the public ownership, like oils, basic minerals etc. Such industries must fall under the public (i.e. state run) sector. Naturally, these projects, whether public or private, require financing.

As far as the private sector is concerned, it is up to the individual, the company or the partners to finance their projects in any way they deem fit by legal means (i.e. by what the Shari‘ah permits).

As for the public sector, it should not resort to overseas loans to finance its projects, for this leads to increasing foreign influence, and also to increasing poverty, which is the result currently seen in Third World countries, whose economies are crippled by such loans. Besides, such loans are generally subject to interest, which is forbidden in Islam. Therefore, the State should finance its own projects even by imposing taxes upon those who can afford it, in order to raise sufficient funds to launch the industrial revolution. The Islamic verdict on taxation projects should apply if such measures were to be taken, such that poor people would not be subject to the taxation.

Projects could also be financed by purchasing machinery on easy terms, even if it means paying more for the machines in the long term than their actual prices; this should be on a sales basis, and not on a usury transaction.

Establishing the Foreign Markets

Marketing goods is one of the major factors that generate wealth. Many countries have taken great care, past and present in finding markets for their goods and products. Many economic empires have been established on such a basis. It is essential therefore for the Islamic State to market its goods and products. However, this should not be an aim but a means to helping the purchase of goods necessary for the industrial revolution, to acquire hard currency or to send the Muslim youth to acquire the necessary education such as civil engineering, medicine etc.

On this basis, the policy of establishing foreign markets should be pursued, i.e. on a commercial and industrial basis. Attention should not be focused on the trade balance with the different countries. It is insignificant for our exports to be less, more or equal to our imports, as long as the objectives of the Economic System, the foreign policy and other obligatory considerations of the State are achieved, by being commercial and industrial at the same time, whether the trade balance were to our advantage or not. However, it should be noted that the basis followed by the Islamic State in its trading is different from any other in the world. All other countries deal on the basis of where the goods originate from and not where the businessman comes from. The State bases its trading on the traders origin, not on the origin of the manufactured or produced goods. This should be taken into consideration while establishing trading relations. In this way, the Islamic State will not for example, be involved in any trade with countries who are hostile to it, or at war with it.The businessmen of the State are its citizens, and they deal with others on the basis of free trade on goods that are legal according to the Shari‘ah; whereas other businessmen trade according to the foreign policy of their country.

This method of trading, if pursued, would help generate and increase the wealth.

In these ways, the economic policy of the Islamic State will build it up as a powerful economic force, where it will supply the basic needs of its people, and enable them to fulfil their luxurious needs as much as possible, while undermining all the corruption, inequality and unfairness that is manifest in the Western and Socialist economic systems.

The Role of the State

The government plays an important role in the Economic System of Islam.

Islam makes it the responsibility of the State to provide food, clothing, shelter, education, health and security to every individual. It is also the responsibility of the State to enable citizens with the means to get luxurious needs in addition to these basic needs by themselves. The State achieves this through the management of public property, through the use of income from other sources and through provision of a good economic environment so that people satisfy their needs due to their involvement in economic activity.

The Economic Policy of the State

The fixed economic policy of a country, like the Islamic world, emanates from the general concept about the universe, man and life, i.e. the Islamic ‘aqeedah and whatever is derived from the ‘aqeedah in terms of rules and concepts. Since the Islamic rules are fixed and since they provide a solution for the case of welfare for mankind, it would be ineffective for the Muslim world to design and plan a non-fixed economic policy, nor a policy alien to Islam. Its economic policy must be based on the Islamic ‘aqeedah, i.e. the economic policy of the Islamic State should be based upon nothing but Shari‘ah laws derived from the Holy Qur’an and the Sunnah, and whatever these two sources have guided to in Ijma‘ of the Sahabah (consensus of the Companions) and Divine Qiyas (analogy).

The Islamic economic policy aims at dealing with the essential needs of the individual, enabling him to improve his lifestyle and achieve prosperity as an individual. The economic policy provides the individual with the means to work towards achieving prosperity, by maintaining always the high values (laid down by the Shari‘ah) as the dominant factor in the relationships between individuals.

Therefore, the economic policy that should be adopted by the Islamic State is not with the aim of just increasing the GNP (Gross National Product), nor creating what is called ‘Social Justice’, or state Socialism. The policy should be to ensure the correct distribution of resources, amongst all members of the Ummah, guaranteeing thereby the basic needs for all people, and allowing every individual to satisfy his luxurious needs as much as possible, within the boundaries of the Shari‘ah.

However, the distribution of resources and wealth necessitates having the means to generate them and improve their methods of growth. The land, for instance, needs to be cultivated with the aim of increasing the output. On this basis, the Islamic State must incorporate a programme of economic development.

Interest rates form the backbone of the Capitalist system in many ways. It is used as a tool to regulate economic growth and monetary supply by acting as an ‘incentive’ for those who have surplus money to save/hoard. In Islam both interest and hoarding are prohibited. Allah (swt) says in the Qur’an:

“And those who hoard up gold and silver and do not spend in the way of Allah, announce to them a painful chastisement.” [TMQ 9:34]

He also says,

“Allah has permitted trade and forbidden interest.” [TMQ 2:275]

Owners of capital therefore have to invest it either in the form of private business or partnership.

The most fundamental criteria that must be met by all companies of partnership are that there must be offer and acceptance between two or more parties, and that once they become partners they have equal say in the running of the company. In addition to these criteria, the manner of sharing profits and losses is dependent on the type of company and agreement made. In the Anan where partnership is formed by the wealth of two or more parties, any loss suffered by the company would be shared among the partners in proportion to the capital they put in. In the Abdan where partnership is based on services provided by the partners, loss is shared according to the salaries/wages of the partners. In the Mudharaba where partnership is based on capital from one party and labour from another, loss is incurred by the owner of capital while the provider of labour loses his wage/salary. From these elementary rules and structures, many other forms of company can be formed. In all cases, profit is shared according to mutual agreement independent of the amount of capital or service/labour provided.

Through this arrangement, continuous business investment keeps employment levels high and both the rich and the poor have the potential to get richer.

Islam has defined three types of property within the Economic System. These are : Individual Property, Public Property and State Property.

1. Individual Property

Allah (swt) has permitted human beings to utilise capital, whether by consuming, using or exchanging it. Islam has made ownership a legal right for the individual, and it does not impose a limit on the amount of wealth that one can own. Accordingly, people may own moveable property, such as livestock, money, cars and clothes, or immoveable property such as land, houses or factories.

However, the Shari’ah controls the means of ownership such that people acquire the right to wealth in a just manner, and it also regulates the ways in which it is disposed of.

Means of Ownership

There are a variety of ways in which ownership of wealth can be achieved. Work is one example of this, whether it be for ones self or for others in exchange for a wage. This includes any type of permitted work, such as farming, mining, trading etc. Other means of ownership which Islam has permitted include inheritance, grants of the States property to citizens, gifts, blood money or dowry.

Islam restricts the means in which wealth can be earned or invested by forbidding persuits such as gambling, fraud, theft and bribery, or trading in wine, pigs, crosses and other forbidden items.

2. Public Property

This is defined as the commodities which Islam has made the property of Muslims as a whole, such that individuals are allowed to utilise them, but are forbidden from owning them as their own property.

These commodities come under three main categories :

a) The utilities of the community without which the everyday life of the community cannot properly function. Under this category comes things like water or oil reserves. Muhammad (saw) said, “The people are partners in three things : water, pastures and fire.”

However, the order is not restricted to these three things, but it includes everything that is a common need for the whole community. All machinery used for such purposes is similarly regarded as public property, like that required for drawing water for public use, the pipes for transporting water to consumers, or hydro-electric power stations and their pylons and distribution cables etc.

b) Commodities that by their nature cannot be an individuals property like the seas, rivers, public parks, mosques and public highways. The Messenger of Allah (saw) said, “Whoever reaches Mina first has the right to it.”

This category includes trains and other forms of public transportation, or sewerage drains along the public roads; they cannot be an individuals property for they belong to the public.

c) Natural uncounted minerals. These include the many minerals, such as salt, magnesium or copper, which are vast in quantity. They are the property of all Muslims and individual or corporate possession of these things is forbidden. The mining, manufacture, storage or distribution of these minerals is not given to individuals or companies on an exclusive basis. It is necessary that they remain the common property of all Muslims. The State as the representative of the Muslims should itself mine them or sub-contract their collection, and all revenues should be kept in the Bait al-Mal (the State treasury). There is no difference, as regards the law, between the minerals whether they are in open mines like salt and antimony sulphide (mascara) or if they are deeply hidden underground and difficult to mine, like gold, silver, iron, uranium etc. The Shari’ah reason for this derives from the narration of Abaydh ibn Hamman al-Mazni that he requested the Messenger of Allah (saw) to allot him certain property in the Ma’reb, which he (saw) gave to him. When he turned back, the Messenger of Allah (saw) was asked, “O Messenger of Allah, do you know what you have given him? You allotted to him unaccounted water.” The narrator said, “He (saw) took it back from him.”

As regards small amounts of minerals like ornaments of gold or silver, it is allowed for individuals to own them. As an example, the Messenger of Allah (saw) allotted Bilal ibn al-Haris al-Mazni the minerals of Qabaliyh in al-Hijaz. Bilal had asked the Messenger of Allah (saw) to allot it to him therefore he (saw) did so and made him the owner.

The Way of Utilising the Public Property

Since the Public Porperty is the property of all Muslims, it is accordingly the right of every individual to enjoy its utilisation. If the commodities of this property are such that every person can utilise them directly, like water, pasture, electricity, public roads, rivers and seas, then he is allowed to do so by himself.

However, if the commodities of Public Property are such that they are not easy for every individual to make use of directly, like oil and minerals, then it is for the State to mine them and collect their revenues in Bait al-Mal and for the Khaleefah to spend from it in ways that are useful to all Muslims. It is possible that he decides to undertake the distibution of the products and revenues in a variety of ways :

a) It can be spent on the running and mining of Public Property commodities, as well as on public buildings, staff, advisors, experts, machinery and factories.

b) It can be spent upon the Muslims since they are the common owners of the commodities. He can distribute amongst them things like water, gas, oil or electricity without charge or he can grant them money from their revenues according to the situation of Muslims for their general betterment.

c) He can take from it revenue to spend on jihad and what the jihad requires such as ordinance factories, establishing the army and other expenses of Bait al-Mal which are obligatory for the State to provide for the people.

3. The State Property

This includes every commodity of land or building which is connected to the right of the public and is not included in the Public Property. So the State Property consists of things that are liable to individual possession such as land, buildings and moveable things. Included within this category are state office buildings, or state money. The public has a right to these and therefore their running and control over use is given to the Khaleefah (i.e. to the State) because he has the resposibility to exercise his powers regarding everything that is associated with the public right, like deserts, mountains, river banks, uncultivated lands not owned by people, buildings and property which the State has purchased and made suitable for dwelling, or has captured from enemies in war like state department buildings, schools, hospitals and the like.

The State has the right to give of its property to individuals, such as lands and buildings, because the Khaleefah can give them to the people on an ownership and utilisation basis, or on the basis of utilisation only, or people can be permitted to cultivate dead land and thereby acquire its ownership.Whichever way the State Property is used, it is for the good of the citizens.

Through these ownership principles, Islam ensures that everyone gets what is rightfully due to him from his Creator unlike, for example, the Capitalist system where only those who take part in the production process have the right to wealth. At the same time, it gives full incentives to individuals to fully participate in the economy by not imposing a limit on how much they can own. As well, it guarantees the rights of the people over the wealth that Allah (swt) has endowed upon them, and prevents greedy individuals from exploiting and monopolising it at the expense of others.

Ownership constitutes one of the important incentives for engaging into economic activity as the owner of wealth has the right to use or dispose of it. The means of acquiring such rights is one of the fundamental principles through which the objectives of the Islamic Economic System are achieved.

In the Islamic Economic System, it is understood that the real owner (Creator) of all wealth is Allah (swt). We only ‘own’ wealth by proxy as guardians. Some of us acquire wealth by engaging in the production process and hence have a direct access to wealth. These include the factors of production as defined by Islam. Others have an indirect access to wealth simply because Allah (swt) as the real owner of wealth has stipulated that those with direct access to wealth through engagement in the production process must pass some of it on to them as He made clear in the Qur’an:

“Give to them from the property of Allah which He has bestowed upon you.” [TMQ 24:33]

This usually takes the form of zakat, kaffara, sadaqat al-fitr, inheritance, etc. which are given to the poor, the needy and later generations. It is the duty of the government to ensure that such wealth is duly transferred by law.