Today's modern world suffers from the near absence of social justice, which has become a rare feature of most national economies. We are also witnessing a deep recession affecting most countries mainly due to a major crisis in the world's banking and financial system.
Major public unrests, demonstrations, protests and revolutions have been spreading from one country to the next in the past few years, especially in Europe, America and the Middle East.
Experts are searching for an alternative system that offers the best of two worlds: the efficiency of production of the capitalist system, and the fairness of distribution of the socialist system. Does such a system exist?
We believe that Islam offers this delicate balance through the divine guidelines that encourage investors to invest in the real economy to make real profits that benefit all people while creating new jobs needed in society, and taking good care of the less-privileged and the weak through a comprehensive social security safety net centered around Islam's third pillar: Zakah.
This folder, Islamic Economy & Social Justice, sheds light on some of the main Islamic guidelines on finance and wealth distribution, and presents some of the problems associated with interest-based finance, while describing the functioning of an ideal banking system in an Islamic economy, in addition to answers to a selection of questions on alternative investment and consumption loans, and different aspects of Zakah for an ideal social structure that is sound, fair and that leads to sustainable social relations.
Zakah and Social Justice
Zakah, the third pillar of Islam, is the social pillar which protects society and aims at establishing social justice. An act of worship like prayer, Zakah reflects compassion with the less fortunate and mercy in the heart of a believer that leads to the love of God.
Foundations of Islamic Economics & Finance
What does a religion (Islam) have to do with economics, finance and monetary dealings? How and why does Islam control human behavior in economics and how is it related to the overall foundation of faith?.
Why is Usury Prohibited in Islam?
Debt, with its increasing amount of interest compounded upon it, is dangerous for any nation because it means loss of sovereignty and control
Islamic Solutions for the Global Financial Crisis
One of the most important objectives of Islam is to realize greater justice in human society. This is not possible unless all human institutions, including the financial system, contribute positively towards this end
Q & A on Islamic Economics & Finance
What is the solution to the problem of securing sources of credit without resorting to the practitioners of Riba as that source?