Articles

The article, primarily interested in microeconomic theory and formulation, seeks to illustrate the factors that go into the consideration of a Muslim when making his or her investment choices.

The author presents an argument that Islamic economics ought to be viewed by Muslim scholars, by

Although the Islamic economic system is not opposed to a free market, it does impose certain ethical restrictions on it. This is exemplified by the prohibition of interest and other measures that discourage profiteering. These restrictions should not affect the disposition of people to further the economy because they cannot maximize their profit, since their intentions should be guided by the will to attain Falah and not solely profits.

Muslims who debate interest-free banking try to take an apologetic approach and try to justify Islamic banking using western economic standards. That is, many Muslims aim to make interest-free banking feasible in western eyes and economically superior by capitalist standards. This approach is incorrect in two ways. First, it misleadingly implies that interest-free banking is mostly all there is to Islamic economics, and thus presents Islamic banking as only another alternative to conventional banking.

The author, at the University of London, relates that

Islamic banking is a piece of a larger whole – Islamic morality. Islamic banking is commonly treated as traditional banking with the exclusion of riba. This misconception can lead to non Shari‘a compliant investments and activities.

Some financial practices that do conform to the shari`a are and are thus Islamic are: 1.

The author, in discussing production factors and how they are classified, refers to Islamic law in relating certain factors of production which others economists do not relate. A two-factor division of inputs by which they are classified as labor and as capital is judged by the author to be consistent with Islamic jurisprudence. Critical analyses of the economic theory on production factors and of the economic theory on the distribution of the production factors are engaged in by the author.

Muslim countries have begun to take a renewed interest in their own religion. Many have decided to apply Islamic Law to their governments.

It is important to study the development of the social sciences through an Islamic perspective in opposition to that of the West. Issues of values and ethics were never treated as part of economic thought in the Western ideology. Around the 18th century a separation of scientific research and spirituality occurred in the West. In