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The Economic System of Islam

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The Economic System of Islam The Economic System of Islam Taqiuddin an-Nabhani Hizb ut Tahrir Sixth Edition, Seventh Print 1425/1428 A.H. (2004/2008 CE) (Authenticated) The Economic System of Islam Taqiuddin an-Nabhani Hizb ut Tahrir Sixth Edition, Seventh Print 1425/1428 A.H. (2004/2008 CE) (Authenticated) "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] 1 Table of Contents Commencing Ayah..................................................................... 1 Introduction ............................................................................... 6 Introduction to Economic System ............................................ 8 Economy ................................................................................... 46 The Basis of the Economic System ........................................... 47 The View of Islam towards the Economy ................................. 48 Economic Policy in Islam .......................................................... 51 The General Economic Principles ............................................. 62 Types of Ownership ................................................................. 68 Private Ownership ................................................................... 68 Definition of Private Ownership ................................................ 69 Defintion of Ownership ............................................................. 70 The Means of Owning Property ............................................. 73 The First Means of Ownership ............................................... 76 Work (Amal) ............................................................................ 76 Cultivation of Barren Land: (Ihya ul-Mawat) ........................... 76 Extraction of Earth’s Elements .................................................. 78 Hunting ...................................................................................... 79 Brokerage and Commission Agency (Samsara and Dalala) ...... 80 Joint Venture (Mudharaba) ........................................................ 82 Share Cropping (Musaqat) ......................................................... 83 Employing an Employee (Worker) ............................................ 84 The Work of the Employee (Worker) .................................... 87 Definition of the Work............................................................... 87 The Type of Work ..................................................................... 88 Duration of the Work ................................................................. 91 Wage for Work .......................................................................... 92 The Effort Spent in the Work .................................................... 94 The Ruling Regarding Hiring Over Prohibited Benefits ........... 95 The Ruling of Hiring Non-Muslims .......................................... 97 Hiring someone to perform Worships and Public Services ....... 98 Who is an Employee? .............................................................. 103 2 Basis for Wage Assessment ..................................................... 103 Estimating the Employee's Wage ............................................ 106 The Second Means of Ownership ......................................... 118 Inheritance.............................................................................. 118 The Third Means of Ownership ........................................... 120 The Need for Funds for Sustenance ..................................... 120 The Fourth Means of Ownership ......................................... 123 State Funds Granted to Citzens ........................................... 123 The Fifth Means of Ownership ............................................. 124 The Property obtained by Individuals without exchanging Labour or Money ................................................................... 124 The Way to Dispense of Funds ............................................. 132 Right of Dispesation ................................................................ 132 Increasing Funds (Investment of Funds) ................................. 132 The Rules of Lands ................................................................ 134 Cultivation of Barren Land ...................................................... 139 Disposal of Land ...................................................................... 144 Prohibiting the Leasing of Land .............................................. 150 Trading and Manufacturing ................................................. 155 Trade ........................................................................................ 155 Manufacturing.......................................................................... 157 The Laws of Partnership (Companies) ................................ 160 The Company (Partnership) in Islam ....................................... 160 The Company of Equal (Al-'Inan) ........................................... 162 The Company of Bodies (Al-Abdan) ...................................... 165 Joint Venture (Mudharaba) [Company of Body and Capital] . 167 The Company of Reputation Faces (Wujooh) ......................... 169 Company of Negotiation (Mufawadha) ................................... 171 Dissolving the Company ......................................................... 172 Capitalist Companies ............................................................ 174 Commercial Company of Joint Liability (Unlimited Liability Company) ................................................................................ 174 Joint-Stock Company (Share Companies) ............................... 175 Shares of the Share Stock Company ........................................ 188 3 Co-operative Societies ............................................................. 191 Insurance (Ta'meen) ................................................................ 194 The Prohibited Methods of Increasing Ownership ............ 202 Gambling ................................................................................. 202 Interest/Usury (Riba) ............................................................... 203 Criminal Fraud ......................................................................... 207 Deceit in Trade ........................................................................ 209 Monopoly ................................................................................. 212 Price-Fixing (Tas'eer) .............................................................. 215 Right of Dispensation to Spend in Gifts and Maintenance 219 Poverty (Al-Faqr)..................................................................... 235 Public Property (Al-Milkiyyah Al- Ammah) ...................... 246 State Property ........................................................................ 252 Nationalised Property is neither Public Property nor State Property .................................................................................. 254 Seclusion (Hima) in the ......................................................... 256 Public Interests....................................................................... 256 Factories.................................................................................. 259 Bait ul-Mal (The State Treasury) ......................................... 261 Revenues of the Bait ul-Mal .................................................... 261 The Expenditures of the Bait ul-Mal ....................................... 263 The State Budget...................................................................... 266 Zakat ........................................................................................ 268 The Head Tax (Jizya)............................................................... 272 The Land Tax (Kharaj) ............................................................ 273 Taxes ........................................................................................ 275 Distributing Wealth among the People ................................ 278 Economic Equilibrium in Society ............................................ 279 The Prohibition of Hoarding Gold and Silver ......................... 282 Riba and Currency Exchange (Sarf) ................................... 290 Riba (Interest/Usury) ............................................................... 292 Currency Exchange (Sarf) ....................................................... 298 Exchange Transactions ............................................................ 303 Money (An-Nuqood) .............................................................. 308 4 The Gold Standard ................................................................... 314 Benefits of the Gold Standard ................................................. 314 Problems facing the Gold Standard ......................................... 317 The Silver Standard ................................................................. 318 Metallic Money ........................................................................ 319 Paper Money ............................................................................ 320 Issuing of Currency.................................................................. 321 Exchange Rate of Currencies................................................... 325 Foreign Trade........................................................................
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