Islam views life as a compact whole and does not divide it into many separate and conflicting parts. The economic aspect is one of the most important parts of our life, while not being the whole of it. The Islamic system is balanced and places everything in its right place. Islam has given detailed regulations for the conduct of our economic life which concerns mainly the earning and use of wealth.
Man needs bread to live but he does not live for bread alone. This means that earning and spending money is essential for our living, but we do not live only for this. We have a greater purpose in life. We are Allah’s agents (Khalifah) on earth. We not only have a body but we also have a soul and a conscience. Without our soul and conscience, we would be considered little more than animals.
Everything in Islam is for the benefit and welfare of mankind. The economic principle of Islam aim at establishing a just society wherein everyone will behave responsibly and honestly, and not as ‘cunning foxes’ fighting for as big a share of something as possible without regard for honesty, truth, decency, trust and responsibility.
The principles of Islamic first is Rububiyyah. Tawhid Ar-Rububiyyah can be roughly translated as “Unity/Oneness of Lordship”. It pertains to Allah , and His lordship. We combine these to get the Islamic definition of rabb: Allah is the one who creates, sustains, and owns the entire creation. He alone is the Master, the Controller, the Nourisher, the one who creates from nothing. He has the right to each and every atom of creation.
Next of principles of Islamic is Khilafah. Islam considers man as the best of God’s creations and exalted them to the status of His vicegerent on the earth. In Islam, Allah is the genuine ownership of all resources in this universe. Nevertheless, He created everything for the use of the mankind relying on trusteeship. Man as a trustee of His belonging carries the responsibility (amanah) to utilize all the resources in the right way and further enrich those resources.
Lastly the principles of Islamic is Tazkiyah ( purification ). Purifying the soul of mankind in term of moral, spiritual and material aspects in order to achieve higher level of god-fearing or al-Falah. This can be implemented through zakat, waqf and sadaqah. Compulsory payment of Zakah is one of the main principles of an Islamic economy. Every Muslim who owns wealth more than his needs must pay the fixed rate of Zakah to the Islamic state. Zakah is a means of narrowing the gap between the rich and the poor. It helps the fair distribution of wealth. It is a form of social security. The Islamic state is responsible for providing the basic necessities of food, clothing, housing, medicine and education to every citizen. No-one should have any fear of insecurity or poverty .