Economy and Trade in Islam

Contents > Economy and Trade in Islam

- Allah created us and taught us to live together and fulfil
our needs through mutual trade. Any society functions
through the continuous exchange of wealth, goods and
services that allow all people to meet their needs. This is an
essential part of our lives that can easily be abused and
exploited. Allah says,

“O you who believe! Eat not up your property among yourselves
in vanities: But let there be amongst you Traffic and trade by
mutual good-will: Nor kill (or destroy) yourselves: for verily
Allah hath been to you Most Merciful!”
The basis of trade in Islam, as is clearly laid out in the above
verse is, transactions between two capable and consenting
parties who both have mutual benefit and satisfaction in
their trade. This prevents some people from taking
advantage of others and prevents the rich from exploiting
the weak and poor through usury, gambling, monopolies,
hoarding wealth etc.

The Islamic economic rules are the most robust and just
trade laws in existence and given the chance would
eradicate poverty, greed and exploitation and reduce the
overwhelming gap between rich and poor that is prevalent
today.

For the ordinary Muslim, trade, including: buying and
selling goods, borrowing and lending money, using and
providing services and giving and receiving gifts, is an
unavoidable part of daily life. It is essential for us to know
what forms of trade and earning are permitted in Islam.