The Economic System

The management of the economy is to take in consideration the viewpoint about the targeted society when considering the fulfilment of the needs. So wh...

The primary economic problem is the distribution of wealth and benefits to all of the subjects of the State, and facilitating their utilisation of thi...

It is obligatory to guarantee that all the basic needs are met for everyone, and are completely met on an individual basis, and to guarantee that ever...

The wealth belongs to Allah (swt) alone, and He (swt) has made human beings the trustees of it. Through this general trust they have been given the ri...

There are three types of property – private, public and State.

Private property is Shari’ah rule determined by the property itself or the benefit from it. This qualifies the one that owns a property to benefit of ...

Public property is the permission of the Legislator (swt) for the community to collectively utilise the property itself.

State property is every wealth whose expenditure is determined by the opinion and Ijtihad of the Khalifah, such as the wealth derived from taxes, land...

Private property consisting of liquid and fixed assets is restricted to the following five Shari’ah means: Work Inheritance The need of weal...

The disposal of property is restricted by the permission of the Legislator (swt), for both of spending and investment. Squandering, extravagance and m...

Tithed land (‘Ushriyyah) constitutes land within the Arabian Peninsula and land whose owners had embraced Islam, whilst possessing the land, before th...

Dead land is possessed through its revival and fencing. Any other type of land is not possessed except through a Shari’ah means such as inheritance, p...

It is completely prohibited to rent land for agriculture, irrespective of whether the land was Kharajiyyah or ‘Ushriyyah. Likewise, temporary share-cr...

Everyone that owns land is compelled to use it, and those that require financial help are given money from the Bayt Al-Mal to enable them to utilise t...

There are three categories of Public Ownership: a. Public utilities, such as the open spaces in the towns. b. Vast mineral resources, like oil f...

Factories by their nature are private property. However, they follow the rule of the product that they are producing. If the product is private proper...

The State is not permitted to transfer private property into public property, since public property is confirmed by the nature and characteristic of w...

Every individual from the Ummah has the right to utilise anything from public property, and it is not allowed for the State to permit someone to indiv...

The State is allowed to protect some of the dead land and any part of public property for any public interest.

Hoarding of wealth is prohibited, even if Zakah is paid upon it.

Zakah  is collected from Muslims, and is taken from the wealth which the Shari’ah has specified such as money, the profits of trade, cattle and grains...

Jizya is collected from non-Muslims (people of Dhimma). It is to be taken from the adult men if they are capable of paying it, and it is not taken fro...

Land tax is payable upon the Kharajiyyah land according to its capacity. Zakah is collected from the ‘Ushriyyah land according to the actual productio...

Muslims pay the taxes that the Shari’ah has permitted to be levied upon them in order to cover the expenditure of the Bayt Al-Mal, on the condition th...

The State has the right to impose taxes in order to undertake anything that the Shari’ah obligated upon the Ummah if the funds in the Bayt Al-Mal were...

The budget of the State has permanent chapters determined by Shari’ah rules. As for the sections of the budget, the amounts allocated for each section...

The permanent sources of income for the Bayt Al-Mal are the booty, Jizya, land tax, a fifth of buried treasure, and Zakah. This income is collected co...

If the permanent revenues of the Bayt Al-Mal are not sufficient to cover the expenditure of the State, then it is possible to impose taxes upon the Mu...

Money taken at the borders of the State from custom duties, income derived from public or State property, inheritance for which there is no inheritor ...

The expenditure of the Bayt Al-Mal is divided across six sections: The eight categories which deserve the Zakah to be spent upon them, from the ...

The State guarantees to create work for all of those who carry its citizenship.

Company employees and those employed by individuals have the same rights and duties as employees of the State. Everyone who works for a wage, irrespec...

The salary is to be determined according to the benefit of the work, or the benefit of the employee, and not according to the knowledge and/or qualifi...

The State has to guarantee the living expenses of the one who has no money, no work and no relatives responsible for his financial maintenance. The St...

The State works to circulate the wealth amongst the subjects, and prevents it from circulating solely amongst a particular sector of society.

The State makes it easier for all the citizens to be able to satisfy their extra (non-essential) needs, and to achieve equality in society in the foll...

The State supervises agricultural affairs and its produce in accordance with the needs of the agricultural policy which is to achieve the potential of...

The State supervises the whole affairs of industry. It directly undertakes those industries which are connected to whatever is part of the public prop...

Foreign trade is assessed on the basis of the citizenship of the trader and not the origin of the goods. Merchants from countries in a state of war wi...

All individual subjects of the State have the right to establish scientific research laboratories connected to life issues, and the State must also es...

Individuals are prevented from possessing laboratories producing materials that could harm the Ummah or the State, or materials that the Shari’ah forb...

The State provides free health care for all, but it does not prevent the use of private medical care or the sale of medicine.

Development and investment by foreign funds within the State are forbidden. It is also prohibited to grant franchises to foreigners.

The State issues its own independent currency, and it is not permitted for it to be linked to any foreign currency.

The currency of the State is to be restricted to gold and silver, whether minted or not. No other form of currency for the State is permitted. The Sta...

It is permissible to have exchange between the State currency and the currency of other states like the exchange between the State’s own coinages. It ...

It is completely prohibited to open banks, and the only one permitted will be the State bank, and there are no transactions upon interest. This will b...