Principles of Islamic economics

The author attempts in the article to explain the philosophical structure and basis of the Islamic economic system in terminology easily understood by non-economists. The author cites and elaborates on the: 1. Principle of Tawheed and brotherhood in the religion; 2. Principle of work and productivity in Islam; and 3. Principle of distributional equity that exists in the faith. The author offers his understanding of how these principles affect the overall outlook on economic life. A discussion of Islamic financial policies and practices is taken on--mentioned and particularly addressed are the abolition of riba (interest), the practice of mudaraba (trust financing), and the practical consequences of commitment to equitable of resource allocations (including an end to wastefulness and the institution of zaka ). The author suggests that the application of an Islamic economic outlook in the Muslim world can prove important in the development of and in the evolution of Muslim countries