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The second important duty of servanthood is zakat. God’s Messenger, who depicts prayer as Islam’s pillar or support, describes zakat as its bridge (Canan, ibid., 6:346), for zakat not only brings the social strata closer to each other and fills in the gaps between them and their members, but also stops such gaps from forming.

Zakat means purity and growing. Since it purifies wealth and people’s attachment to it, and causes both it and Muslims to grow in purity and sincerity, the Qur’an calls it zakat (or the prescribed alms):

Taking into account its very nature, zakat constitutes one of Islam’s five pillars. It is associated with prayer (salat) in 82 Qur’anic verses. God, the Exalted One, prescribed it in His Book (the Qur’an), His Messenger corroborated it by his sunna, and the Muslim community by consensus upheld it. Ibn ‘Abbas reported that when the Prophet sent Mu‘adh ibn Jabal to Yemen (as its governor), he said to him:

Many verses exhort Muslims to pay zakat and forbid hoarding wealth. For example:

Zakat must be paid by every free Muslim, man or woman, who has a nisab (the required amount of wealth). As for the insane and children who have a nisab, if their wealth is under disposal or in circulation, their guardians pay it on their behalf. If a person dies before paying it, it must be taken from the estate before paying off any debts, if there are any, and the heirs share the inheritance.

· Nisab is the amount of wealth remaining after meeting all expenses for such vital necessities as food, clothes, housing, and a mount. Thus, one does not have to pay zakat on what he or she needs to make a living, such as tools or machines related to carpentry, farming, tailoring, or working as a doctor. All debts are subtracted from one’s wealth. If one has enough secured credit to pay off the debt, it is added to one’s wealth, and if the resultant wealth reaches the nisab, one must pay zakat.

· For many items subject to zakat (e.g., money, gold, silver, and cattle), a full year of the Islamic calendar should pass, starting from the day of the nisab’s possession. If the wealth possessed decreases during the year but is still possessed one year later, zakat must be paid. What matters is the availability of nisab at the beginning and end of the year. However, this condition does not apply to plantations and fruits, for their zakat should be paid, or at least calculated, on the harvest day and include what has been consumed before the harvest.

· In short, there are two types of zakat: one grows by itself (e.g., crops and fruits), and the other is used for growing and production (e.g., money, merchandise, and cattle). In the former case, zakat should be paid at harvest time; in the later, at the end of the year.

· The wealth subject to zakat should be actively or potentially increasing, growing, or productive. This condition will be explained below.

· One must have private, doubtless ownership or possession and the right of disposal of the wealth liable to zakat.

Intention. Since paying zakat is an act of worship, its validity depends upon one’s sincere intention to pay it for God’s sake. If one pays it without making the intention, one can still intend while the wealth expended as zakat has not yet been consumed.

Paying Zakat at Its Due Time. Zakat must be paid immediately at its due time. Deferring it is prohibited, unless there is a valid reason not to do so.

Holdings Subject to Zakat and Their Nisab. Islam enjoined zakat on currencies and similar things, such as shares, bonds and checks, gold and silver, crops, fruit, livestock, merchandise, minerals, and treasure.

The Standard of Richness. Islam does not criticize earning; rather, it encourages working and earning one’s livelihood. But it does not approve of earning for luxury and a luxurious life, and urges Muslims to work, earn, and live for the other life as their goal. It encourages mutual helping in society and spending in God’s way and for the needy, and has not established a fixed standard of living. It regards having a house, a mount, two suits and other articles of clothing, and one month worth of livelihood (some say that one can keep a year of livelihood at the most) as the necessary commodities or wealth upon which one does not have to pay zakat. Bediüzzaman Said Nursi expresses a standard that can be valid for all times, as follows: While most Muslims are below the average standards of living, a Muslim cannot live a luxurious, comfortable life.

The Sunna has established approximately 90 grams of gold or about 600 grams of silver or 40 sheep or 30 heads of cattle or 5 camels as the standard. If, according to the place or the general standard of living of the people in a particular place, one has banknotes, merchandise, or other kinds of increasing income or capital whose value is equal to any of the standard values given, he or she must pay zakat. However, in establishing the nisab, the minimum amount or value, which favors the poor, is considered.

The Nisab and Zakat for Gold, Silver, and Other Jewelry. The nisab for gold is 20 dinars (approximately 90 grams) and for silver is 200 dirhams (approximately 600 grams), both being owned for one year. The due on them is one-fortieth of their value. Any additional amount is to be calculated in this manner. Gold and silver are combined. Thus, if one has gold and silver whose value is equal to 200 dirhams of silver, zakat must be paid. Likewise, gold, silver, banknotes and the like, and commercial merchandise are also combined. Things made of gold and silver are treated like gold and silver. In other words, if the weight of gold and silver they contain amounts to the nisab, their zakat is paid.

Although most of the scholars opine that no zakat has to be paid on diamonds, pearls, sapphires, rubies, corals, or other precious stones that women wear as ornaments and unless they are used for trade, it is piety and a measure to be saved from the obligation of zakat, which is both God’s and people’s right on rich people, to make some payment due to them. One should not buy such precious stones in order to avoid paying zakat.

Banknotes, Checks, and Bonds. As these are documents with guaranteed credits, banknotes, checks, and bonds are subject to zakat, at the rate of one-fortieth of their value, when they are owned for one year and attain the minimum of nisab (being equal in value to 200 silver dirhams). A person may change them into currency immediately. They are combined with currencies, gold and silver, and commercial merchandise.

Commercial Merchandise. Any commercial merchandise that is religiously lawful to use, consume, buy, and sell (e.g., clothes, grain, iron, copper, cattle, sheep, houses, shops, and cars) is subject to zakat. Their due is one-fortieth. Due to gold’s stable value, jurists maintain that it should be the basis upon which the nisab of commercial merchandise is determined.

Buildings and Vehicles of Transportation That Are Sources of Income. One who rents out a house, a shop, tools, vehicles, or land, or who has vehicles working in transportation, must pay zakat on the rent and income received. If their annual revenue is equal to nisab, after the money spent on them is deducted, the owner pays their zakat every month. Since they are compared with land and land products, their zakat rate is one-tenth.

Industrial Investments and Means of Production. These items are currently among the greatest sources of income. Although people’s private houses, tools, and machines by which they earn their living are not subject to zakat, industrial investments and means of production (e.g., factories) are, for they are growing and sources of revenue. Some jurists compare them to land and land products, and say that their zakat rate is one-tenth. Others compare them to commercial activities and merchandise, and say that their zakat rate is one-fortieth of the value remaining after debts, expenses on necessary material, workmanship, production, marketing, and financing have been subtracted.

Wages, Salaries, and Independent Businesses. Since wages, salaries, and earnings from independent businesses are steady and continuous and potentially growing, they are subject to zakat if the amount remaining after the yearly average expenditure on livelihood reaches nisab. The rate is one-fortieth. Although there are diverse standards of living, Muslims do not think of living a comfortable life when the majority of Muslims and humanity are living a below-average life. Some jurists say that this type of zakat should be paid after one year; others say that it should be paid monthly.

Cattle, Sheep, and Goats. Cattle, camels, sheep, and goats are subject to zakat. They must be commercial or grazing, and have been in one’s possession for a year. The nisab of each is as follows:

· When one has 5 grazing camels for one year, their due is 1 sheep, which is also the due for 5 to 9 camels. The due for 10 to 14 camels is 2 sheep, for 15 to 19 camels is 3 sheep, and for 20 to 24 camels is 4 sheep. The due for 25 to 35 camels is a 2-year-old she-camel, for 36 to 45 is a 3 year-old she-camel, for 46 to 60 is a 4-year-old she-camel, for 61 to 75 is 5-year-old she-camel, for 76 to 90 is 2 3-year-old she-camels, and for 91 to 120 is 2 5-years-old she-camels.

· The nisab for cattle is 30. For 30 to 40 heads of cattle, a 2.5-year-old male or female weaned calf; for 40 to 60, a 3-year-old weaned calf; for 60, 2 1-year-old calves. When there are more than 60 heads of cattle, the rate is 1 calf for each 30 heads and 1 weaned calf for each 40 heads.

· When one has 40 sheep or goats, their due is 1 sheep or goat. For 40 to 120 it is the same, for 120 to 200 it is 2 sheep, for 200 to 399 it is 3 sheep, and for 400 to 500 it is 4 sheep.

Farm Products. The zakat on farm products is paid when they are harvested. One must calculate them in advance if he or she wants to use or benefit from them. Most scholars maintain than their nisab is about 50 quarters, that is, if one has that amount of farm products, one must pay their zakat. The due for farm products naturally irrigated (with rain) is one-tenth; if they are irrigated by their owner, who must pay the related expenses, the due is one-twentieth.

Minerals, Mines, Buried Treasure, and Sea Products. The zakat on such items is one-fifth. If a buried treasure is found in a land whose owner is unknown or belongs to the state, one-fifth of it is given as zakat and the rest belongs to the finder. If it is found in a land whose owner is known, one-fifth is given to the owner. Scholars have ruled that there is no nisab for such items. However, some maintain that when these items are worth about 600 dirhams of silver or 90 grams of gold, zakat must be paid.

Scholars have divided property into two categories: hidden (kept at home, such as money, gold, and silver) and property kept in the open (e.g., animals and farm products). During the Prophet’s lifetime and that of the caliphs, zakat was collected by officials appointed for that purpose. There was even a special zakat fund in the state budget. In later times, the state began to collect zakat on the property in the open and let the owners of hidden properties take care of it by themselves.

Muslims or Muslim communities must find a good, preferable way to collect zakat in the absence of an Islamic authority and distribute it properly, as mentioned in 9:60. They are:

· Poor people who do not earn enough to keep themselves and their families alive.

· Those whose hearts, due to their weak Islam, need to be reconciled or strengthened for Islam; whose hearts can be swayed toward Islam; or those whose evil against Islam and the Muslims could be avoided.

· To support those who exalt God’s word, strive for God’s cause (mujahidun), and provide for students and pilgrims.

Zakat is distributed among the recipients according to their need and priority, assigned to those in greater need, or according to circumstances. But zakat is not voluntary charity given to please the poor or needy; rather, it is spent to eradicate poverty, provide capital for the needy in order to save them from their need, to fill the gaps between classes, or to prevent such gaps from appearing in society.

Sadaqa al-fitr must be paid by every free Muslim whose wealth meets one’s basic needs and has extra wealth equal to 600 grams of silver. A Muslim must pay it for himself, his wife, children, and servants at the end of Ramadan to purify those who fast, to protect them from indecent act or speech, and to help the poor and needy. It is given before the ‘Iyd prayer on the ‘Iyd (Religious Festive) Day. One who forgets to pay it, or cannot pay it at this time due to some valid excuse, must pay it when one remembers it or has no more excuse.

Traditionally, sadaqat al-fitr has been calculated on the basis of, and paid as, wheat, barley, dates, and dried grapes. However, the amount to be paid must be sufficient to meet an average person’s daily food intake. It can be paid either in the kind, as mentioned above, or in its monetary equivalence.

Islam views wealth realistically – as an essential aspect of life and the main means of individual and group subsistence. God Almighty says: Do not give to those devoid of good judgment and sanity your property, which God has put in your charge as means of support for you (and the needy) (4:5). This amounts to saying that wealth is to be distributed to meet basic needs (e.g., food, clothing, lodging, and other indispensables), and that no one is to be lost, forgotten, or left without support. The best way to distribute wealth so that everyone’s basic needs are met is through zakat, for it places no burden upon the wealthy, meets the basic needs of the poor, and relieves them of life’s hardships and deprivation’s pain.

Zakat is not a favor of the wealthy to the poor; rather, it is a due that God entrusted to the rich so that they might deliver it to the poor and distribute it among the deserving. This establishes the following truth: Wealth is not exclusively for the rich, but for the rich and the poor. This is what is meant by God’s saying: so that this (wealth) may not circulate solely among the rich from among you (59:7). Zakat must be paid by those who can pay it, and must be given to the poor and the needy so that they can meet their basic needs, not go hungry, and acquire a sense of security and general well-being. If there is not enough zakat to meet such needs, the rich can be subjected to further taxation. How much should be taken is not specified, for that depends upon the needs of the poor.

The Qur’an urges the wealthy to spend in God’s way and for His cause. For example, in praising the believers, it declares:

The Qur’an tells us to give from what we love and not to place people under obligation because of what we spend in God’s way or give to them:

God promises great reward to those who spend their wealth in His way, and warns against being miserly and spending only to attract people’s attention:

Another point to stress here is that generalizing certain matters sometimes has caused great misunderstanding and wrong applications, as in the cases of condemning the world and asceticism. Humanity is God’s vicegerent on Earth, meaning that people have the right to interfere with things (i.e., the ecological equilibrium and ‘nature’s” universal laws) within the bounds established by God, improve Earth, and rule it in God’s name and according to His laws. This duty falls first of all upon believers, because denying God in any way severs the link between God and humanity and makes people beings who shed blood and cause unrest upon Earth.

Since maintaining human existence depends upon belief and the existence of a formidable group of believers with the potential to bear the Divine Trust, Earth’s Divine bounties belong, first of all, to believers. In return, they are obliged to administer them and distribute them justly among people. Thus, they are to use Earth’s bounties in accordance with God’s Will, and to thank Him in return. However, they are forbidden to go beyond the lawful limits in benefiting from them and make eating and drinking the goal of their lives.

In addition to engendering competitive clashes over such items, overconsumption also leads to accumulated energy that, if not controlled, causes such destructive sins as adultery and prostitution. So, to avoid such destruction, individuals can adapt, and are even advised to embrace, asceticism. But the Muslim community cannot leave earthly bounties, as well as their administration and distribution, to others in the name of asceticism. As Bediüzzaman Said Nursi puts it, believers must not set their hearts on the world but must work and earn to maintain themselves, uphold God’s Word, and spend in His way.

Islam guides its followers in all phases and activities of life, material as well as spiritual. Its basic teaching on economics is mentioned in several Qur’anic passages. We find it stated clearly in several verses, as in some of those mentioned above, that God created everything on Earth, in the seas, and the heavens for humanity’s benefit, meaning that everything submits to Him and can be used by humanity, who is tasked with knowing and profiting from the creation in a rational way and by paying due regard to the future.

Islam’s economic policy is explained in unequivocal terms: so that this (wealth) may not circulate solely among the rich from among you (59:7). Equality of all people in wealth and comfort – even if it is ideal – does not promise to be an unmixed blessing. For example, since people do not have equal natural talents, even if complete equality were achieved, spendthrifts would soon fall into difficulties and begin envying and coveting other people’s good fortune. Furthermore, on philosophic and psychological grounds, it seems to be in humanity’s interest that their be differences in wealth.

Human livelihood is in constant progress, for humanity continues to dominate and exploit one thing after the other in God’s creation, whereas animals have changed nothing in their livelihood since God created their species. One cause of this difference, as discovered by biologists, is the simultaneous existence of a society – a cooperation and a liberty of competition among the people who live in that society. Perhaps the most developed social cooperation is found among bees, ants, and termites, all of which live collectively and with complete equality in livelihood. But there is no competition among its members, and so any bee which is more intelligent or industrious cannot live more comfortably than others. Thus none of these species evolves, changes, or makes any progress in the human sense of those terms.

Human history shows that every advance and discovery of how to become more comfortable came into existence through competition and the desire for improvement, as well as through the existence of grades of wealth or poverty. Yet absolute liberty would lead devilish people to exploit the needy and gradually draw them out. So each progressive civilization and healthy culture had to impose certain duties (e.g., paying taxes, forbidding oppression and cheating), and to recommend certain supererogatory acts (e.g., charity and spending for God’s sake), while nevertheless allowing a great deal of liberty of thought and action to its members, so that each person benefits his or her self, family, friends, and society at large. This is the exigency of Islam.

Islam has based its economic system on this fundamental principle. If it tolerates richness, it imposes heavier obligations on the rich. For example, they have to pay taxes to help the poor, and cannot engage in immoral economic practices (e.g., exploitation, hoarding, and wealth accumulation). To achieve this goal, it makes various laws, as well as some recommendations (e.g., charity and sacrifice), with the promise of a spiritual (other-worldly) reward. Furthermore, it distinguishes between the necessary minimum and the desirable plenitude, and between those laws that are accompanied by material sanctions and those that are not by persuading and educating.

We shall describe this moral aspect first through several illustrations. Islam has used very emphatic terms to show that begging charity from others is abominable and a source of shame. Yet at the same time, it highly praises those who help others, calling the “best of people” those who sacrifice and prefer others to themselves. Similarly, avarice and waste are prohibited.

One day the Prophet needed considerable funds for a public cause. One of his friends offered a certain amount and, when asked by the Prophet, replied: “I have left nothing at home but the love of God and of His Messenger.” This person received the warmest praise from the Prophet. But on another occasion, another Companion who was seriously ill told him, when he came to inquire about his health: “O Messenger of God, I am a rich man and want to bequest all that I possess for the welfare of the poor.” The Prophet replied, “No, it is better to leave your relatives with an independent means of livelihood so that they will not be dependent upon others and have beg.” When the man decreased it to two-thirds and then one-half, the Prophet still refused, saying that it was too much. When the man finally proposed one-third of his property in charity, the Prophet said: “Well, even one-third is a large amount.” (cf. Abu Dawud, “Zakat,” 45).

One day the Prophet saw a Companion in miserable attire. When asked why, he replied: “O Messenger of God, I am not at all poor, but I prefer to spend my wealth on the poor rather than on myself.” The Prophet remarked: “No. God likes to see on His servant traces of the bounty that He has accorded him.” (cf. Abu Tirmidhi, “Birr,” 63).

There is no contradiction in these accounts, for each has its own context and relates to distinct individual cases. Muslims are allowed to determine how much charity they will give after their wealth has exceeded the obligatory minimum.

Both the individual right of controlling one’s wealth and the right of the collectivity vis-à-vis each person’s wealth, inasmuch as one is a member of society, have to be satisfied simultaneously. Individual temperaments differ enormously, and sickness or other accidents may affect a person all out of proportion to the norm. Therefore, a certain discipline should be imposed upon the individual in the interest of the collectivity.

Thus Islam has taken two steps: distributing a deceased person’s goods among his or her close relatives according to a method that cannot be challenged, and restricting the freedom of bequest through wills and testaments. The legal heirs require no testamentary disposition and inherit the property in the proportions determined by law. A testament is required only for those who have no right to inherit.

Parents and grandparents inherit, and one cannot award to one son (elder or younger) more than to the other, regardless of age. Before the property is distributed, however, the burial expenses have to be paid first, and then the creditors, as paying debts has priority over the inheritors’ rights. After this, the will is executed in such a way that it does not exceed one-third of the remaining property. Only after satisfying these obligations are the heirs considered. The surviving spouse, parents, and descendants (sons and daughters) are the first-class heirs and inherit in all cases. Brothers, sisters, and more remote relatives (e.g., uncles, aunts, cousins, nephews, and others) only inherit if there are no nearer relatives.

Wills are operative only for one-third of property and favor persons other than creditors and heirs. The goal of this rule seems to be twofold: To permit a person to adjust things, in extraordinary cases, when the normal rule causes hardship (one-third of the property is enough for fulfilling such moral duties) and to prevent the accumulation of wealth among a few people. This could happen if one willed all of his or her property to only one person. Islam desires that wealth circulate as widely as possible, taking into account the family’s interest.

One also has obligations as a member of a larger family (i.e., society and the state of residence). In the economic sphere, one pays taxes that the government then redistributes in the collectivity’s interest. Tax rates differ according to the sources of income. Interestingly, the Qur’an, which gives precise directions about budgetary expenditure, contains no rules or rates of the income for the state. While scrupulously respecting the practice of the Prophet and his immediate successors, this silence may be interpreted as allowing the government to change the rules for income according to circumstances and in the people’s interest.

This consists of risks involving heavy charges from objects of insurance, and differs according to the times and social conditions. Among the Arabs of the Prophet’s time, daily ailments were unknown and the cost of medical care was practically nothing. The average man built his house and paid for almost none of the material. Thus it is easy to understand why one did not need fire, health, and other types of insurance. However, insurance against captivity and assassination was a real need. The Prophet’s contemporaries were aware of this and so desired certain flexible dispositions that could be modified and adapted to different circumstances when necessary.

For example, in the Constitution of Madina, which was formulated during the first year of the Islamic era, this insurance is called ma’aqil and worked as follows. If someone became a prisoner of war, paying a ransom could procure his freedom. Similarly, all bodily torts or culpable homicides required the payment of damages or blood money. The person concerned often could not afford the sum demanded. Thus, the Prophet organized an insurance system on the basis of mutuality. A tribe’s members could count on the tribe’s central treasury, to which everybody contributed according to his means. If the treasury proved inadequate, other related or neighboring tribes had to help. Thus a hierarchy was established for organizing the units into a complete whole. At Madina, the Ansar tribes were well known. The Prophet ordered the Makkan refugees in Madina to form their own “tribe,” even though they belonged to different Makkan or regional tribes, or were Abyssinians, in order to provide social insurance.

Under Caliph ‘Umar, the branches of insurance were organized according to which professional, civil, or military administration one belonged (or even of regions). Whenever needed, the central or provincial government helped those branches, as we described above when speaking of state expenditure.

Insurance signifies the spreading of one individual’s burden among as many people as possible in order to lighten each person’s burden. Unlike modern capitalistic insurance companies, Islam organized insurance on the basis of mutuality and cooperation, aided by a pyramidal gradation of the branches that culminated in the central government.

Such a branch could engage in commerce with the help of the unutilized funds at its disposal, so that the capital would be augmented. A time might come when a branch’s members could be exempted from paying further contributions or might even receive some of the profits of commerce. Such elements of mutual aid could insure against risk (e.g., traffic accidents, fire, and loss in transit). Also, the insurance industry can be nationalized in order to deal with certain risks (e.g., such temporary motives as dispatching parcels).

Without entering into technical details, Islam does not tolerate the capitalist version of insurance, for the insured person does not participate in the company’s benefits in proportion to his or her contributions, which makes it resemble a game of chance.

Qur’an 5:90 prohibits all games of chance and characterizes them as the “work of Satan” for cogent reasons. First, most social evils emanate from an inequitable distribution of the national wealth, which allows some to become too rich and others to become too poor. As a result, the rich can exploit the poor. In games of chance and lotteries, there is great temptation for quick and easy gain, although such easy gain is often bad for society. If people spent 3 million dollars every week on horse races, public or private lotteries, and other games of chance, as is the case in certain countries, over the course of only 10 years, 1.56 billion dollars would be collected from a large number of people and distributed among a ridiculously small number of people. Less than one percent of the people thrive at the expense of the remaining 99 percent. In other words, 99 percent of the people are impoverished in order to enrich 1 percent.

Whether games of chance and lotteries are private or nationalized, the evil of a few people accumulating wealth at the expense of a the vast majority works with full force. This is why Islam prohibits such activities. As is the case with capitalistic insurance, games of chance bear one-sided risks.

Probably every religion has prohibited usury. However, only Islam provides remedies to undermine the causes leading to this evil institution: Nobody willingly pays interest on borrowed money. He or she pays interest because the money is needed and there is no other choice.

Islam has made a very clear distinction between commercial gain and interest on money-lending: God permits trading and forbids interest (2:275) and

If you do not give up (interest), be warned of war against God and His Messenger. If you repent, you shall have your principal, (without interest); neither you wrong nor be wronged. (2:279)

The basis of this prohibition is also unilateral risk, for one who borrows money on interest earns money for the rich. In games of chance and lotteries, where there is a great temptation for quick and easy gain, circumstances may not have been propitious enough for the borrower to earn enough money to pay back the promised interest, and the lender assumes none of the risk involved.

People do not deprive themselves of their money in order to make interest-free loans to others. Since Islam tells the state to help those who are in financial difficulty, the public treasury organized interest-free loans in addition to, and to supplement, the loans offered by charitable people or organizations to help the poor and the needy. The principle here is mutual aid and cooperation.

In the case of commercial loans, there is the system of muda-raba, in which one lends money and participates equally in any potential gain or risk. For example, if two people form a company, each one furnishing half of the capital and labor, the resulting profit distribution is quite easy. However, if the capital comes from one party and the labor from the other, if both furnish the capital though only one of them works, or their shares are not proportionally equal, in such cases a reasonable remuneration for labor, based upon previously agreed conditions, is taken into consideration before distributing any gains and profit. Although all precautions are taken to prevent risk, Islam demands that both contracting parties to any contractual negotiation must share the profit as well as the loss.

To sum up, the principle of mutual participation in profits and risks must be observed in all commercial contracts.

When planning, one needs to have an idea about the available resources. The Messenger organized a census of the Muslim population, as al-Bukhari informs us. During ‘Umar’s caliphate, a census of animals, fruit trees, and other goods was organized, and cultivable lands were measured in the newly acquired provinces. With a large spirit and full of concern for the public’s well-being ‘Umar would invite representatives of the people of different provinces, after taxes were collected, to find out if they had any complaints about the collector’s behavior during the year.

We end this brief sketch by mentioning two important prohibitions that are characteristic of a Muslim’s daily life: games of chance and alcoholic drinks. Having already discussed the first one, which causes the vast majority of its participants to spend money for years without gaining anything in return, we now turn to a discussion of alcohol. Alcohol has a very interesting quality: drinking only a little of it makes one happy and weakens any resolution to stop drinking. While drunk, people lose control over their actions. For example, they may squander money without being aware of what they are doing. In addition, various unhygienic effects of alcohol are transmitted to their children and future generations. Qur’an 2:219 speaks about such matters in the following terms: They question you about wine and games of chance. Say: “In both is great sin and some profits for people, but the sin of them is greater than their usefulness.”

The Qur’an does not deny that alcohol has some benefits, but still declares it a sin against society, the individual, and the Legislator. In 5:90, alcohol is relegated to the same level as idolatry and declared to be the handiwork of Satan. It adds that if one wants to be happy in both worlds, one should avoid games of chance and alcohol.

All financial and other dealings are based on some expressed or implicit agreements. Honoring these agreements is the key to happy and smooth relationships among members of a community or a society. Therefore, the Qur’an stresses this principle and, in several places, actually lists it as being among a believer’s most important characteristics.

The failure to honor agreements is a primary cause of difficulty in dealings among people, especially financial dealings. If we analyze broken business partnerships or other difficulties in financial dealings, we will always find their root in the failure of one or more parties to fulfill one or more of the implicit agreements related to those dealings.

To avoid such problems due to forgetfulness or other reasons, and to reduce any chance of misunderstanding and bad faith, the Qur’an orders that all financial deals be committed to paper and witnessed, as we read in the following passage:

In these verses, the Qur’an distinguishes between financial transactions that involve credit for a definite period and those that are carried out on the spot. Examples of the first type include loans for a definite period and the purchase or sale of goods with either the payment or delivery promised for some fixed future date. An example of the second type include buying something in a shop on a cash-and-carry basis.

Some people might be surprised that the holy Qur’an recommends that even on-the-spot transactions (e.g., sale of goods on cash-and-carry basis) should have some proof in writing or through witnesses. Perhaps because at first sight it looks unnecessary, this recommendation has been almost completely ignored in the Muslim world. However, as business became more organized, the wisdom behind this recommendation has been independently discovered in modern times. These days, whenever we make any purchase, no matter how small, we receive a receipt. This receipt serves many purposes, such as enabling the customer to return defective items with little or no argument, prosecuting merchants who overcharge or cheat the customer in some way, catching and prosecuting shoplifters, and making it easier for buyers and sellers to keep accounts.

After briefly discussing the usefulness and relevance of the Qur’anic orders to write and/or witness financial deals, we now consider just how obligatory they are.

Writing a clear, detailed agreement and having it duly signed and/or witnessed can prevent two problems: forgetfulness and misunderstanding. In addition, it can reduce the chance of any involved party being tempted to take advantage of the other parties by lying, cheating, or other crooked ways resulting from bad faith. But to avoid bad faith, more than just recording the deal in writing is needed. What is needed here is piety, on which Islam lays such emphasis, defined as the respect for moral values that comes through fear and consciousness of God and belief in the Hereafter.

However, there will always be people who do not give too much importance to piety and thus will break an agreement whenever it suits them. To counter such people, there must be a legal apparatus to enforce any deals that they may willingly sign.

Justice (‘adl) means to divide two things equally or keep the balance. The Qur’an uses it for justice in all matters, and Islam teaches the believers to be fair in their dealings, as we read in:

Islam commands the believers to be just among themselves and exhorts them to be fully just even to their enemies:

Justice and righteousness are the cornerstone of the Islamic way of life. God’s Messenger was known for this justice even before he declared his Prophethood. Throughout his life, he exhorted his followers to be truthful and just. Moreover, he set a perfect example of justice even to the followers of other religions and his enemies.

In accordance with the Divine law, the concept of social justice lays down certain conditions to treat people as individuals having liberty and equality as their birthright. This concept provides them with equal opportunities for personal development so that they are better able to fill the position to which they are entitled, to give each person his or her due, and to regulate his or her relations with society in terms of value and welfare.

This concept of social justice is achieved by giving people a better understanding of their individual duties in society and the reward thereof, as provided by Islam. The Messenger made education, being the measure and touchstone in this context, obligatory upon every Muslim, both men and women. More specifically, he said and knew that knowledge enabled one to distinguish right from wrong.

A society’s progress depends upon the interaction between the individual and society, for this establishes and maintains a balance in human affairs. Humanity should always keep in mind that God created the universe for a particular purpose and that humanity has been asked to strive for its fulfillment.

Broadly speaking, human rights center on equality and freedom. Caliph ‘Umar reprimanded the governor of Egypt, whose son had struck a Copt (an Egyptian Christian), with the following instructive words: “Why have you enslaved men who were born free by their mothers?” Again, his instructions to establish equality among people demonstrate the best egalitarian features: highly placed people cannot take advantage of their position, and the weak are not made to despair of their condition.

All people are God’s servants. The only permissible characteristic by which one can claim superiority, distinction, and pre-eminence over others is the virtue of piety. All people are equal in social status. This is fully manifested in the congregational prayers, where there is no room for rank and special privilege. All are equal in God’s sight, whether one happens to be a caliph or a slave. The Messenger declared that all people were equal, like the teeth of a comb.

O humanity, We created you from a single (pair) of a male and female, and made you into nations and tribes that you may know each other. Verily, the most honored of you in God’s sight is (the one who is) the most righteous of you. (49:13)

Islam avoids extremes in order to maintain social balance and order. Therefore, monopoly and cut-throat competition are disapproved. Islam’s essence is justice for all, which enables people to lead a good and happy life while, at the same time, strengthens the bonds of human brotherhood and the social fabric.

The social framework prevalent today in most Muslim countries is not Islamic. Many places are characterized by monstrous and oppressive conditions for the poor, rampant corruption, poverty, and need. A few people have acquired substantial wealth and thus enjoy the numerous amenities and luxuries of life, whereas the majority do not even receive two square meals a day. An Islamic social order stresses simple and austere efforts that are free from ostentation. The Messenger strove to bridge the gap between the rich and the poor, the high and the low. He advocated a society in which one sector would not exploit another, for Islam seeks a balanced life that represents the equilibrium of social forces.

The fullest development of humanity’s potential can be achieved through the implementation of Islamic principles. The optimum level of civilization, which embodies the maximum well-being, can never be possible without spiritual and moral development. All Islamic principles, which descend from Divinity, are perfect and absolute. The Islamic approach is therefore just, natural, humane, and perfectly balanced and rational.

· Islam represents a complete way of life. There is no compartmentalization of human activity is Islam. Its economic policy is, therefore, an integral part of the religion of Islam.

· Islamic economic system is based on equality, justice, moderation, and collective self-sufficiency.

· Man’s piritual development is fundamental but his physical welfare is instrumental.

· Islam is based on faith in God, Who has given man the capability to choose between good and evil, and assume full responsibility for his conduct. “Man has only that for which he makes effort, and and this effort will be seen.” (53:39-40)

· Islam is a universal system embodying eternal values which safeguard man’s rights while constantly reminding him of his obligation to himself and society.

· Islam forbids exploitation and monopoly in all forms and strictly prohibits unearned interest such as usury, gambling, betting, etc.

· Islam honors labor and contracts, enjoins work and toil, encourages man to earn his own living by honest means and to spread his earnings.

· Islam encourages mutual helping and never likes “wealth to circulate among the rich only” (59:7). Every member of the Muslim community feels obliged to help his poor brother while he is equally entitled to live a private life and to own property.36

[1] This section is taken (edited and summarized) from Muhammad Hamidullah, Introduction to Islam and from Ahmad Shafaat and Asghar Qureshi, Hamdard Islamicus 20, no. 3 [Jul-Sept 1997]).