Islamic economics is founded on three fundamental principles that distinguish it from other economic theories and systems, which it does not deviate from. These principles are:

First: Dual Ownership - Private and Public

Ownership in Islam is ultimately for Allah, while human ownership is granted as a form of stewardship. The ultimate and complete ownership belongs to Allah, as He is the Creator without any partner in His dominion, the Sustainer, and the Sovereign over all things. This is evident in verses such as: "It is He who created for you all of that which is on the earth" [Surah Al-Baqarah: 29], "And to Allah belongs the dominion of the heavens and the earth and whatever is between them, and to Him is the [final] destination" [Surah Al-Ma'idah: 18], "To Him belongs whatever is in the heavens and whatever is on the earth and whatever is between them and whatever is under the soil" [Surah Ta-Ha: 6], "And We have certainly established you upon the earth and made for you therein ways of livelihood" [Surah Al-A'raf: 10], "And there is not a thing but that with Us are its depositories, and We do not send it down except according to a known measure" [Surah Al-Hijr: 21], "Say: “Who gives you sustenance, from the heavens and the earth?” Say: “It is Allah”" [Surah Saba': 24].

At the same time, the Qur'an acknowledges human ownership in a functional and limited sense, as seen in: "And from their properties was [given] the right of the [needy] petitioner and the deprived" [Surah Adh-Dhariyat: 19], "Take, [O Muhammad], from their wealth a charity by which you purify them and cause them increase" [Surah At-Tawbah: 103], "But if you repent, you may have your principal" [Surah Al-Baqarah: 279].

This concept reconciles the ultimate ownership of Allah with human stewardship and responsibility over resources. For example, the verse: "And do not give the weak-minded your property, which Allah has made a means of sustenance for you" [Surah An-Nisa': 5] indicates that wealth belongs to the weak-minded but within the framework of stewardship, as clarified in: "And spend out of that in which He has made you successors" [Surah Al-Hadid: 7]. Thus, Allah has granted humans the right to utilize and manage wealth. Some properties are designated as private (individual) ownership, while others belong to the community or state (public ownership). Private ownership is protected and safeguarded in Islam, and violations against it are strictly prohibited, with severe punishments prescribed for transgressions.

Public ownership pertains to resources essential for the community, such as water, pasture, and fire.In “Nail al-Awtar” ⁽¹⁾ Abu Dawood reports that the Prophet Muhammad (peace be upon him) said: "Muslims share alike in three things: water, herbage, and fire." ⁽²⁾ Similarly, Bukhari and Muslim narrate: "Excess water must not be sold for the purpose of having the herbage which grows from it sold." Other essential resources may be analogized to these, as necessities evolve over time and across environments, provided that such analogies align with Islamic principles.

Additionally, public ownership can extend to state-owned properties, such as land allocated for public welfare or used by state entities, like the lands managed by Bayt al-Mal (public treasury).

In contrast, other economic systems like capitalism and Marxism prioritize either individual or collective ownership. While deviations from these principles may exist in both systems, they are often reactive measures rather than foundational rules.

Second: Solidarity and Guaranteeing Sufficiency

Islam introduces a unique system called kifayah (sufficiency), which sets Islamic economics apart from other systems. Imam Ahmad narrates in his Musnad through multiple chains that the Prophet Muhammad (peace be upon him) said:
"Whoever undertakes a task for us and does not own a house, let him acquire one; if he is unmarried, let him marry; if he does not have a servant, let him acquire one; and if he does not have a mount, let him acquire one."
Similarly, Abu Dawood records in his Sunan that the Prophet (peace be upon him) said: "He who acts as a governor for us must get a wife; if he has not a servant he must get one, and if he has not a dwelling he must get one." ⁽³⁾

There are cases where certain types of work do not generate sufficient income for employers to provide workers with wages that meet their full needs, including those they support. In such situations, it becomes the state's responsibility to ensure sufficiency for workers if their fair wages are inadequate. For those unable to work, their sufficiency must also be guaranteed, either through obligatory family support, or if unavailable, from zakat or the public treasury (Bayt al-Mal).

This is the Islamic system for workers' wages, welfare, and rights. In contrast, capitalism neither recognizes nor practices such solidarity. On the contrary, early mercantilists and even Adam Smith advocated for minimal state interference in economic matters.

If contemporary capitalist states exhibit certain forms of worker support, such developments arose under pressure from labor strikes or union activity and are not intrinsic to capitalist principles. These adaptations reflect failures in capitalism's foundational tenets. Consequently, one could argue that capitalism collapsed in principle before Marxism, as these compromises represent a departure from its core ideologies and highlight its shortcomings.

Marxism, in its two historical phases, displayed contradictions and fallacies. Under the dictatorship of socialist governments, Marxist ideals conflicted with reality. For instance, the principle of "From each according to his ability, to each according to his work" was implemented while private ownership was abolished. Stalin acknowledged: "In our time, there is a tendency to neglect the weak and focus exclusively on the strong." He further stated: "It must be understood that collective farming does not merely mean state control over all agricultural resources but also makes labor a prerequisite for sustenance. We do not establish farms to feed freeloaders."

Thus, the Marxist system tied even basic survival to labor for both men and women and strictly excluded private ownership. However, due to clashes with reality, private ownership began to re-emerge on a limited scale within communist states, ultimately leading to the system's collapse in less than three-quarters of a century.

In contrast, Islam operates under the principle: "From each according to his ability, to each according to his work or need—whichever is greater." This Islamic principle is realized within a framework of both religion and state, through dual accountability (divine and societal), and with an awareness that labor is elevated to the level of worship.

Third: Restricted Freedom

Freedom is one of the key principles of Islamic economics. A Muslim is free to choose the type of work that suits them, the means of earning that they find comfortable, the ownership they prefer, and the spending that fulfills their desires. This freedom, which starkly contrasts with the Marxist system, is not absolute as in the free-market capitalist system. Instead, it is restricted within the framework of the concept of istikhlaf (stewardship) mentioned earlier and is governed by the rules of Islamic legislation regarding what is lawful (halal) and unlawful (haram).

The Muslim, as a trustee, acts within the limits set by the one who entrusted them. Therefore, it is not permissible for a Muslim to benefit from or dispose of wealth except in ways ordained by the true owner of all wealth—Allah, who has entrusted them with it.

If a person fails to observe the commands of Allah by denying rights or committing forbidden acts, the second component of dual accountability is activated: the oversight carried out by the Islamic state.

These principles of Islamic economics underpin every endeavor a Muslim engages in to earn a livelihood. They aim to prevent injustice in society, ensure the state does not oppress individuals, and safeguard the dignity and rights of both the individual and the community simultaneously.

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(1) "The Chapter of People Being Partners in Three" (5/342), and in Sunan Ibn Majah "The Book of Pledges: The Chapter of Muslims Being Partners in Three."

(2) The Chapter on the Wages of Workers.

(3) The hadith was left uncommented by Abu Dawood and Al-Munziri, meaning they did not consider it weak. Upon further examination, the file found it to be uninterrupted, and its narrators are trustworthy and not criticized. Therefore, the hadith is authentic. In ‘Awn al-Ma'bood (8/161), it is explained that the individual is allowed to take from what is under his control from the wealth of the public treasury, equal to the dowry of his wife, her maintenance, and her clothing, as well as what is necessary without extravagance or indulgence.

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