Economic System of Islam

Sovereignty of Allah and its Implications for Those in

Authority
Islam lays the foundation of all its systems, whether political, economic, social or any other, on one
fundamental principle—that the ultimate sovereignty and ownership belongs only to God Almighty. That
is, greatly blessed is Allah to whom belongs the kingdom of the heavens and the earth. Similarly, all that
is between them is also under His ownership and control. To Him also belongs the knowledge of the last
Hour—when all of these have served their purpose and the time for them to perish has arrived.
Ultimately, everything will be brought back to Him. In this verse Almighty God announces that the rules
over the heavens and the earth and whatever lies between the two is under His ownership and control.
Furthermore, it is God alone who knows the destined time when every living being, after fulfilling the
purpose of its creation, must face its end and return to Almighty Allah. In brief, this verse lays down that
the kingdom of the heavens and earth really belongs to God, and everything that exists therein is
destined to return to Him. When a person is made responsible for a specific task, or is entrusted with
something of value, he is answerable to the one who entrusted him with those responsibilities; but a
person who regards himself free and unanswerable to anyone would be inclined to do whatever he
pleases. This verse of the Holy Quran is a reminder that all worldly governments, kingdoms and powers
are under God’s command and are granted to human beings only as a trust. Man must not consider
himself unaccountable just because he has the power and ownership of material wealth that he is given
in this world. He may appear to have authority and ownership on the surface, but in truth he is only
holding a trust from God. Human beings are answerable before God that they rightfully discharged the
trust that was reposed in them.

Justice among People and Nations

That is, O people, Allah commands that when you are in a position to make over the trust of authority to
someone, you should grant it to those worthy of discharging the responsibility. [Then those who are
placed in authority are addressed with the admonition that since they have been elected to positions of
authority by the people, it is their duty that] When you make certain decisions, do so with justice. And
surely Allah admonishes you! Excellent is that with which Allah admonishes you. Verily Allah is All-
Hearing, All Seeing. This verse instructs the people that when given the opportunity to choose someone
as the ruler, they should select the best candidate for the task, who is capable of discharging the affairs
of the State with integrity and competence. He should be the best leader, committed to promoting
general welfare.

Basic Precepts of Governance in Islam

The economic system of Islam requires a specific governance environment, as no system, however good,
can be effective outside its appropriate environment. Islam is the first religion of the world that:

(1) Advocates a system of representative government, with the capability of candidate as the
fundamental criterion for election.
(2) Defines authority as a trust, not a right.
(3) Declares that the basic goal of government must be to protect honor, life and property of
citizens.
(4) Enjoins the rulers to judge amongst individuals and communities with absolute justice and
impartiality, reminding them that they are ultimately answerable before God.

Philosophy of economic system of Islam

(1) Concept of Allah
(2) Concept of Holy Prophet (SAW)
(3) Concept of faith
(4) Concept of authority
(5) Concept of moral purification (Tazkiyyah)
(6) Equality
(7) Day of Judgement
(8) Human as Khalifah

Principles of Economic system of Islam

 (1) Individual Freedom
(2) Controlled economic inequality
(3) The right to own property
(4) Social Security
(5) Individual and Social welfare
(6) Ban on anti-social institutions
(7) Social justice and equality
(8) Circulation of wealth and its accumulation

Implementation of Economic system

Economic system can be implemented by obeying on the sharia of Islam

 Tauhid
 Khalifah
 Justice
 Equality

Need of Sharia for implementing economic system

 Maintain and preserve religion
 Keep and preserve Islamic rules for life
 Care and look after their own safety and lives
 Protect and safeguard the property
 Care and maintaining dignity and justice

Concluding Observations
It must be kept in mind that we, the Ahmadis, bear enmity to no one;
we desire the good and well-being of all. Even for our worst enemies we
do not bear the slightest feeling of ill will. All we wish to see is that good
character prevails in the world, man’s spiritual life progresses, and the
Kingdom of God and His Apostle gets established. We desire that
whatever social, economic, cultural or political system is adopted in the
world, it should leave to God and His Apostle the sphere of human life
that rightfully and properly belongs to them; that people who wish to
live by God’s laws should not be made to deny them. We bear no
enmity against Russia, or Communism. I personally harbour deep
sympathy for this great country, and sincerely wish that the Russian
people, who have been victims of extreme cruelty for centuries, should
march forward and witness prosperous times. But I or any other
freedom-loving person cannot bear to watch that a misconceived social
order and political philosophy become an instrument of subjugating
other people. As such, we would look upon any system that
incorporated in itself the Islamic principles in regard to these matters as
our own and shall endeavour to support it to the best of our ability.
Otherwise, we are duty bound to oppose systems that seek to push
religion out of its proper sphere in the life of human beings. Hunger, no
doubt, involves terrible suffering for those who have to bear its pangs;
but we are not prepared to sacrifice our religion even for the sake of
keeping off hunger and want from our hearths and homes.