Islamic Economic System | Characteristics of Islamic Economic System

Islamic Economic System

The economic system that is developed on the belief in the fundamental roles of Islam is called the Islamic economic system.

Characteristics of the Islamic Economic System

In the Islamic economic system, it is said that all the resources of the world have to be used for the welfare of humankind. The important characteristics of this system are as follows:

Belief in Islam: The fundamental rules of the Islamic economy are complied with and directed according to religion, religious philosophy, religious customs, rules, and regulations.

Interest-Free Deposit: The Islamic economic system does not allow interest. Here interest-free deposit system is conducted in banking sectors.

Zakat and Fitra: Zakat Zakat-based distribution system has been introduced in this system. For this, Zakat and Fitra are collected from the rich in order to distribute among them to the poor.

In this system, all economic activities are conducted by the laws of Islam. In the context of production and consumption, the laws of the Quran and Sunnah have to be followed.