February 25, 2012

Principles and Foundations of the Islamic Economy

Khutbah from the Islamic Religious Council of Singapore (MUIS)
Originally published: 24 February 2012

Principles and Foundations of the Islamic Economy from the Perspective of Al-Quran and Sunnah of Rasulullah

Dear blessed congregation,

Let us strengthen our faith by performing what Allah has ordained and refraining from what He has prohibited. Let us stay true to the practices and guidance of Rasulullah (saw). May this bring us closer to the right path that is blessed by Allah (swt).

My beloved brothers,

In the past few weeks, much has been said on Rasulullah (saw) as a blessing to mankind. We reflect on this from the Sunnah of the Prophet which has transformed lives and spread exemplary character through good moral values.

On this note, let us ponder upon a hadith narrated by Abu Hurairah (ra):

“I have only been sent to perfect good manners.” Narrated by Imam Al-Bazzar.

Here, an exemplary manner or character encompasses man’s relationship with Allah (swt), with nature and towards ourselves, in the social, spiritual and even economic aspects.

It is no surprise that Islam emphasizes on morals and good character as a key element to overcome challenges in life. Moreover, the laws that Allah (swt) ordained are rooted in principles that we cannot defy – and this includes areas related to economics.

In the sirah of the Prophet, we can see how he held on strongly to moral principles and exemplary character, and it was not abandoned in Rasulullah’s economics transactions and trading activities within the community.

This is illustrated when the Prophet (saw) undertook trading deals on behalf of Sayyidatina Khadijah Binti Khuwailid (ra), where Rasulullah (saw) brought in large profits for the mission. This success was due to none other than the exemplary character of Rasulullah (saw) and his determination in doing trade.

Among the important principles in Islam that Rasulullah (saw) portrayed is being honest in everything that we do, including in economic engagements. Reiterating this, Rasulullah (saw) said:

“Allah blesses those who are charitable in their trade.” Narrated by Imam Bukhari.

That said, my dear brothers, we must know that the emphasis on morality does not mean that we have to reject the idea of a profitable business, or the potential benefits of such transactions to the economy in general.

In fact, this is the benefit of economic activity that Islam acknowledges. It lies in the balance between moral responsibility and material gains. We must bear in mind that, if morals are removed from economics, social balance will be threatened and eventually break down.

This will lead to unhealthy competition and feelings of distrust, when in fact the economic engagements and human interactions within should be on the basis of harmony, cooperation and compassion between one another. Therefore, Allah (swt) reminds us in Surah Al-Takaathur verse 1-2:

“The mutual rivalry (for piling up of worldly things) diverts you, until you visit the graves (until you die).”

My dear brothers,

Allah has created and preserved an economic system to His will, and the Al-Quran and Sunnah gives assurance to man including those who are associated in aspects of trading and the economy.

While Allah (swt) has commanded man to strive for his sustenance and wealth, let us be reminded that He is the All-Provider. Allah (swt) said in Surah Hud verse 6:

“And no (moving) living creature is there on earth but its provision is due from Allah. And He knows its dwelling place and its deposit. All is in a Clear Book – the Luh Mahfuz.”

This assurance by Allah does not at all mean that we should leave everything to fate without effort. Rather, it serves to instill a sense of confidence and peace, as well as faith in destiny when the prosperity we are hoping for does not materialize.

With this, man will not panic nor be demoralized, or even lose hope when their plan fails. Similarly, it reminds us to remember Allah and keep our arrogance in check, when provisions are bestowed upon us. This guarantee of provision by Allah should further motivate us to keep on trying despite multiple failures.

In emulating the exemplary character as propagated in Al-Quran and the Sunnah of Rasulullah (saw), let us pray for success in all that we do, as we seek His pleasure. Amin.


Amin: Amen.
Hadith: Reports on the sayings and the traditions of Prophet Muhammad (saw) or what he witnessed and approved are called hadith (plural: ahadith). These are the real explanation, interpretation, and the living example of the Prophet (saw) for teachings of the Qur'an. His sayings are found in books called the hadith books. Some famous collectors of hadith are Imam Al-Bukhari, Imam Muslim, Imam An-Nasa'i, Imam Abu Dawood, Imam At-Tirmizi, and Imam Majah. There are many others.
Luh Mahfuz "Clear Record." "Human knowledge is subject to time, and is obliterated by time. Allah's knowledge is like a Record and endures forever. And His Record has a further quality which human records have not. The most permanent human record may be quite intelligible to those who make it but may be ambiguous to others and may become unintelligible with the progress of time, as happens almost invariably to the most enduring inscriptions from very anceint times: but in Allah's "Record" or knowledge there is no ambiguity, for it is independent of time, or place, or circumstances." Yusuf Ali, Footnote #1450 to verse 10:61.
(ra): Radiallhu Anhu, "May Allah be pleased with him." This phrase is commonly added after mentioning one of the companions of the Prophet (saw).
Rasulullah: The Prophet of God, Muhammad (saw).
(saw): These letters are abbreviations for the words “Salla Allahu ‘Alaihi Wa Sallam,” which means, “May the blessing and the peace of Allah be upon him.” When the name of Prophet Muhammad is mentioned, a Muslim is to respect him and invoke this statement of peace upon him.
Sirah: Biography; in this case, a biography of the Prophet Muhammad (saw).
Sunnah: In this context, the sayings and practices of the Prophet Muhammad (saw).
(swt): These letters are abbreviations for the words of “Subhanahu Wa Ta’ala.” When the name of Almighty Allah is pronounced, a Muslim is to show his respect to Him by reciting this. The meaning of this statement is that Allah is purified of having partners or a son.

1 comment:

Talal Itani said...

1. In the name of God, the Gracious, the Merciful.
2. Praise be to God, Lord of the Worlds.
3. The Most Gracious, the Most Merciful.
4. Master of the Day of Judgment.
5. It is You we worship, and upon You we call for help.
6. Guide us to the straight path.
7. The path of those You have blessed, not of those against whom there is anger, nor of those who are misguided.
Quoted from www.ClearQuran.com