Sources of Islamic Shariah

Principles of Islamic Economics

Hassan kamran

Shariah
1.

Lexical meaning:

Plain Way

2.

Technical meaning: The Divine Law

 Then We have put you (O prophet) on a

plain way of (our) commandment. So
follow it and do not follow the desires of
those who do not know. (45:18)

What is Shariah
Calling Shariah a 'law' can be misleading,
as Shariah extends beyond law.
Shariah is the totality of religious,
political, social, domestic and private life.
Shariah is primarily meant for all Muslims,
but applies to a certain extent also for
people living inside a Muslim society.

What is Shariah
The regulations of the Shariah can be
divided into two groups:
Regulations on worship and ritual
duties
Regulations on juridical and political
nature

Islamic Matrix

Sources Of Shariah
All the Shariah Rulings regarding
every aspect in human life are
derived and understood from the
four sources.

Sources Of Shariah
Primary Sources

The Holy Quran

The Sunnah of the Holy Prophet (SAW)

Derived Sources

Ijma (consensus of the Ummah)

Qiyas (Anology)
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1) The Holy Quran

The book of Allah (SWT): Revealed on the last prophet,

written in the form of book and is being conveyed with out
any break.

Gives main beliefs, principles and wide-ranging directives

of Allah, Allah (SWT) said:

"Verily, this Qur'an guides to that which is best, and gives glad
tidings to the believers who do good that theirs will be a
great reward." (17: 9)
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1) The Holy Quran

Express Injunctions ( Nusoos) have

no room for interpretation or Ijtihad.

Implied injunctions (Mujmalat) may

be interpreted in different ways by
way of Ijma or Ijtihad.
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2) Sunnah
Definition:
A word spoken or an act done or ratified by the
Holy Prophet (peace be upon him), by Sahabah
and a word spoken or act done byTaabaeeen.
It is a source of law because the Holy Quran itself
has made it obligatory for every believer that he
obeys and follows the Holy Prophet:
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2) Sunnah

And obey Allah and His Messenger, if you

are believers (8:1)

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2) Sunnah

So, believe in Allah and His Messenger, the

unlettered prophet who believes in Allah
and His words, and follow him, so that you
may be on the right path.
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2) Sunnah
Sunnah includes Sayings, Practices, Noobjection (Silent Approvals) of Prophet
and practices of four Caliphs and other
companions of holy Prophet (SAW).
Ahadith have rather specific meanings, it
mean Sayings of Prophet (SAW). Ahadith
act for Quranic teachings and directives
as interpreter and explainer.
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3) Ijma

Ijma means Scholarly consensus

Scholarly consensus is defined as being the agreement of all

Muslim scholars on a specific issue. Given the condition that all
such scholars have to agree to the ruling, its scope is limited to
matters that are clear according to the Qur'an and Prophetic
example, upon which such consensus must necessarily be based.

The Holy Prophet (SAW) has said:

My Ummah shall never be combined on an error.

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4) Qiyas (Analogy)

Qiyas, is reasoning by analogy.

To apply a recognized rule of Shariah expressly mentioned in

the Holy Quran and Sunnah to a similar thing or situation by way
of analogy.

Legal analogy is a powerful tool to derive rulings for new

matters. For example, drugs have been deemed impermissible,
through legal analogy from the prohibition of alcohol that is
established in the Qur'an. Such a ruling is based on the common
underlying effective cause of intoxication.

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School of Thoughts
Our four school of thoughts

Hanafi
Shafai
Malki
Hanbali

All these are based on these sources

Shariah and are true.
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Concept of Impermissibility in Shari'ah

Divine prohibitions
Islam has prohibited some activities for human as
it considers it dangerous and injurious for human
society;
A specific list of these activities has been derived
through primary and derived sources of Shari'ah;
No individual is allowed to modify the list except
in special circumstances;
Examples of these include Pork, Interest,
Gambling, immorality etc.
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Concept of Impermissibility in Shari'ah

Government Restrictions
Islam allows Govt. to intervene where it feels
appropriate, but these restrictions are temporary
as per the need of time.
Central Bank's regulations are another example.

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Principles of Islamic Economics

Moral Prohibitions
Islam has a great emphasis on Life Hereafter. Life in this
world is temporary and there is an eternal life
afterwards.
One has to make this worldly life a way to get the
maximum benefit in the life hereafter.
There are certain activities which are neither banned
from the Government nor they are declared impressible
from any source of Shari'ah, however, moral values may
not allow them.
Similarly there are certain activities which are more
rewarding than others in life hereafter.
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Principles of Islamic Economics

Conventional Economics & Its Problems
To utilize the limited resources in a way that maximum
needs and wants are met to ensure the well being of all
members of the human society
The Four basic Economic Problems
1. Determination of Priorities
2. Allocation of Resources (Land, Labor, Capital,
Entrepreneur)
3. Distribution of Income
4. Development
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Principles of Islamic Economics

Islamic Economic Model
Islamic Economic Model is based on two underlying
principles:
1. Importance of economic goals;
2. Real nature of wealth and property

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Principles of Islamic Economics

Importance Of Economic Goals
1. Economic activities of man are lawful, meritorious
and at times obligatory and necessary.
2. Prophet (SAW) once said: ... and that you leave
your heirs well off (or he said: prosperous) is better
than to leave them (poor and) begging from
people... (Bukhari, Book 013, Number 3997)
3. However economic activity is not the basic problem
and therefore economic progress is not the be-all
and end-all of human existence
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Principles of Islamic Economics

Importance Of Economic Goals
According to Materialistic Economists:
Livelihood is the fundamental problem of man and economic
development is the ultimate goal of human life.

According to Islam:
Livelihood may be necessary and indispensable but cannot
be the true purpose of human life;
Wealth in all its possible forms is created by Allah
Therefore wealth is the property of Allah
The right of property which accrues to man is delegated to
him by Allah
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Principles of Islamic Economics

Importance Of Economic Goals
Islam has a different viewpoint about the four Basic
Economic Problems
Determination of Priorities
Aakhrat is the top priority
Allocation of Resources (Land, Labor, Capital,
Entrepreneur)
No remuneration to Capital
Distribution of Income
Different ways (Zakat, Sadaqaat, etc. etc.)
Development
Only through Halal (permissible) ways and for Halal
purposes

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Basic Concepts and Philosophy of Islamic Banking

Economic philosophy of Islamic Economic System

is based following principles:

Encouragement of Trade and Business

Elimination of Riba

Elimination of Interest

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Basic Concepts and Philosophy of Islamic Banking

Islam suggest a good mechanism of Distribution of Wealth
The purpose is:
1. Establishment of a practicable Economic system
Islam accepts the following thing within a certain
limits
Laws of demand and supply
Motive of personal profit
Market forces (In fact Islam gave the concept of
Market Forces 1300 years before Keynes
presented the modern model of Economics in
1927).
Natural relation of employer and employee
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Basic Concepts and Philosophy of Islamic Banking

2. Enabling every one to get what is rightfully due to

him
Elementary level of deserving wealth: Factors of
production
Secondary level of deserving wealth: Poor

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Basic Concepts and Philosophy of Islamic Banking

3. Eradicating the Concentration of Wealth

Prohibition of:
Hoarding,
Interest
Gambling
Speculation
Uqood-e-Fasidah, and
Gharar
Encouragement of Sadaqah, Laws of Inheritance,
Mehar etc.
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