Principles of Islamic banking and finance/PIBF201/Islamic economic environment/The Islamic World View

A worldview is the set of beliefs about fundamental aspects of Reality that ground, and influence all one's perceiving, thinking, knowing, and doing. It is a study of the world; a view of life; literally, a perception of the world; a particular philosophy of life; a concept of the world held by an individual or a group (J. A Simpson, The Oxford English Dictionary (Oxford; New York: Oxford University Press, 1989)).

Islamic economics is rooted in Islam’s particular worldview and derives its value-premises from the ethico-social teachings of the Quran and Sunnah.” (Khurshid Ahmad)

The key to the Islamic worldview is the word "Islam" itself. It is an Arabic word, a kind of verbal noun meaning "submission". Similarly, "Muslim" means "one who submits". Its importance lies in the fact that it defines how Muslims understand the relationship that God intends should exist between Himself and man. The verb form is typically used of a person laying down his arms in submission; he "makes peace" or "submits." This same idea comes out in the principal synonyms for God and man used in the Qur'an: Rabb ("Lord") and 'abd ("slave"). Five times a day Muslims address God in prayer as "Lord of the worlds," in the words of the first Sura of the Qur'an, and prostrate themselves to the earth as His "slaves."

Islam holds that man possesses both good and bad instincts. God says in Qur'an (Chapter 91; Verse 1-9 as translated by Marmaduke Pickthall)

1. By the sun and his brightness, 2. And the moon when she followeth him, 3. And the day when it revealeth him, 4. And the night when it enshroudeth him, 5. And the heaven and Him Who built it, 6. And the earth and Him Who spread it, ''7. And a soul and Him Who perfected it 8. And inspired it (with conscience of) what is wrong for it and (what is) right for it. 9. He is indeed successful who causeth it to grow (purifies it), 10. And he is indeed a failure who stunteth (corrupts) it. ''

God has perfected human soul and inspired it what is good and what is bad. Man is also created weak and forgetful (in the garden Adam was misled by Satan and forgot God's command). Human beings do sin, but they have the moral power not to sin, and to do the good. For that they need guidance. And God has provided that guidance in the Qur'an and the Sunnah of the Prophet.

According to Kamal M Hassan "The Islamic Worldview (IWV) is basically a theistic and ethical worldview which contrasts sharply with the secularist or atheistic alternatives. This worldview emanates from the fundamental belief that life and existence came into being as a result of the will, desire and design of the One and Only Creator. The Islamic conception of God has therefore to precede any discussions on the nature of the universe and man’s relation to it.

(Hassan, M. Kamal, ‘The Islamic World-View’ in Towards a Positive Islamic World-View: Malaysian and American Perceptions, ed. Abdul Monir Yaacob & Ahmad Faiz Abdul Rahman (Kuala Lumpur: Institute of Islamic Understanding Malaysia, 1994))

It could be said that in the Islamic worldview, there is no bifurcation of the world. There is no duality. The Islamic Weltanschauung (the world view of an individual or group)is based on the two primary sources: the Qur’ân,which Muslims believe to be the direct word of God and the Sunnah, which incorporates the traditions concerning the life example of the Prophet Muhammad. However, the nucleus of both is the principle of Tawhȋd which provides motivation to all that there is in Islamic religious thought. Tawhid is the religion's most fundamental concept and holds that God (Allah, literally Al-Ilāh "the God") is One (Al-ʾAḥad) and Single (Al-Wāḥid). (Abdullah and Nadvi 2011)

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Fundamental Principles of Islamic World-View
''' The Islamic worldview is simple and easy to understand and rationalize. It is based on three fundamental principles which are: tawhȋd (theism), khilâfah (Vicegerency), and 'adâlah (Justice). These principles not only frame the Islamic worldview, but they also constitute the fountainhead of the maqasid (objectives) and the strategy of Man’s life in this world. Thus there is no question of a patchwork or an after-thought in response to the conflicting demands of pluralist groups or social classes.



Tawhid or unity of Allah (God) sums up the Islamic way of life and presents it in a nutshell, the essence of Islamic civilization. It is the one term which describes the process of the Islamic transformation of an individual or a society.20 The Principle of Tawhīd lays the foundation of Islamic social order, which teaches man that his socio-economic activities must be guided by the principles from a single common source, Allah (Subhanahu wa Ta‘āla). This single common source reveals its principles through Holy Qur'ān, which are elaborated by Sunnah.

(M. Nejatullah Siddiqi,, Tawhīd: The Concept and the Process in: Islamic Perspectives: Studies in Honour of Mawlâna Sayyid Abul A‘la Mawdûdȋ, Khurshid Ahmad & Zafar Ishaq Ansari, eds., (UK: Islamic Foundation, 1978) 17. 21 Choudhury, Masudul Alam, Islamic Economic co-operation (London: The Macmillan press Ltd., 1989)

Vicegerency of Man in an Islamic worldview can be noticed in the following points, which are adapted from the Qur’ân and Sunnah. (Abdullah and Nadvi (2011)

• Man and all other creations owe their existence, to Allah alone. • The universe is created and administered in accordance with the regulations set by Almighty Allah, known as “Laws of Nature”. • Negation of the mechanical concept of universe, which claims, it a product of an accident. • Whole universe is subservient to Man for his use and benefit. • Life of the humankind in this world in a place of trial, on which depends his life of the Hereafter. • Allah alone is the Sovereign; this concept of sovereignty gives birth to the concept of human unity and human equality. It slashes the roots of rule of man over man, • Everyone is equal according to Islam. All humans enjoy equal rights and can seek remedy, if wronged, through a court of law. Everyone has protection of his life, property, and honor.

In the Islamic worldview, justice denotes placing things in their rightful place. It also means giving others equal treatment. In Islam, justice is also a moral virtue and an attribute of human personality, as it is in the Western tradition. Justice is close to equality in the sense that it creates a state of equilibrium in the distribution of rights and duties, but they are not identical. Sometimes, justice is achieved through inequality, like in unequal distribution of wealth. The Prophet of Islam declared: “There are seven categories of people whom God will shelter under His shade on the Day when there will be no shade except His. [One is] the just leader.” God spoke to His Messenger in this manner: “O My slaves, I have forbidden injustice for Myself and forbade it also for you. So avoid being unjust to one another.”31 Thus, justice represents moral rectitude and fairness, since it means things should be where they belong. Al-Qur’ân, considers justice to be a supreme virtue. It is a basic objective of Islam to the degree that it stands next in order of priority to belief in God’s exclusive right to worship (Tawhȋd) and the truth of Muhammad’s prophethood. God declares in the Quran: “God commands justice and fair dealing...”32 And in another passage: “O you who believe, be upright for God, and (be) bearers of witness with justice! ...” Therefore, one may conclude that justice is an obligation of Islam and injustice is forbidden. (Abdullah and Nadvi)

it is clear that with this world view of Islam, an Islamic economic system cannot leave the issue of distributive justice in the economy as a residual issue. This point will be elaborated in the next section.