Economic Development- The Islamic Perspective

Economic development is one of the very important for the Islam, as they have to compete with their counter-parts in the world. However Islam does not encourage the unlimited and uncontrolled means of economic growth in the conventional economics. Thus, in this short article I would like to highlight the main ideas of economic development based on the Islamic perspective, according to Shari’ah.

In Islam, the concept of development centers around two broad aspects of its belief system - the Divine and the human- as also the relationship between them. It takes life as a whole and as part of its unitary view of the universe- it does not consider the material and moral aspects of the human existence as isolation of one from the other. The Islamic position of is that man was created to as the vicegerent, the trust keeper and the co-worker of God on the earth (2:29, 6:165, 8:27).

Islam is meant to serve the Devine Purpose of creation. Naturally, its attitude towards numerous methods concerning development- property rights, consumption and production patters, financial arrangements, income distribution, etc are much different from that of other socio-economic systems.


The philosophical foundation of Islamic approach to development are:

1. Tawhid: Allah’s unity and sovereignty
2. Rububiyah: divine arrangement for nourishment, sustenance and directing thing towards their perfection.
3. Khilafah: man’s role as Allah’s vicegerent on earth (trustees)
4. Tazkiyah: purification plus growth

The essential elements on the Islamic concepts of development are:

• It has a comprehensive character in the sense that it includes moral, spiritual and material aspects.
• The focus of development is man: development of man and his physical and socio-cultural development.
• Optimal utilization of resources and physical environment, their physical environment, their equitable use and distribution, and promotion of all the human relationship on the basis of Right and Justice.

Therefore, immense commitment of Islam to brotherhood and justice makes Falah (true well-being) of all human beings the principal goal of Islamic. Furthermore, moral development is a condition for economic development, not only material development. This is completely the opposite of the material and wealth driven capitalist economic development which takes no account to the moral development of the humans.

Islam does not allow economic development through illegal and prohibited ways in Shari’ah. These include: Riba (interest), Gharar (excessive uncertainty) and Maysir (gambling).

We can summarize the economic development in the Islamic Perspective as follows. Economic development will be taking place if and only if the following five conditions are satisfied along with an increase in the level of economic activity:

1. No one is left with his fundamental economic rights unfulfilled.
2. The economy’s moral, social and institutional fabric does not weaken.
3. Economic growth is combined by either constant distribution of income or a reduction in economic inequality in favour of the poorest.
4. The society does not deviate from its original Divine mandate.
5. The society maintains a credible deterrent against external aggression, keeping base with the ever-changing times.

Islamic economic system has clear objectives which are aiming for wide-range economic development. There are also Islamic modes of finance which are unique to Islam, where Adalah (justice) to all parties is maintained. Some of these modes of financing which promote the economic development in Islam include: Musharakah (partnership), Murabaha (cost-plus-profit sale), mudarabah (one finances and the other manages), Salam (sale on goods delivered in the future), Ijarah (lease) etc. All these method are based on profit-loss-sharing for the parties involved so that no one is exploited, and there is an equal distribution of wealth.

Islam also calls for the Muslims to pay Zakat and Sadaka, in order to distribute the income and wealth. Islam discourages concentration of wealth in few hands and ensures its circulation among all the sections of society. Al-Qur’an, the revealed book of Islam, says: “That which Allah giveth as spoil unto His messenger from the people of the townships, it is for Allah and His messenger and for the near of kin and the orphans and the needy and the wayfarer, that it become not a commodity between the rich among you.” (Al-Hashr 59:7). Our prophet (PBUH) has also encouraged us to work hard for the well-being of all the members of society and give alms to others.

Lastly, the Islamic government should be also committed to economic development and save-guard the well-being of all, according to the Islamic principles.

Islam also expedites the social drive toward production in its religious regulations. Under the Islamic economic system, earning is exclusively linked to working. All other means of earning and owner¬ship are abolished. The possession of natural resources is not considered legitimate without continuous human efforts to develop it. Any type of earning that does not require any human labour, in commerce as well as in production, is forbidden. For this reason, the use of financial capital to generate earning is abolished The only legitimate way to make use of capital is to invest it in production and share the risk of profit and loss. To insure the utilization of capital in economic develop¬ment, Islam strongly forbids the hoarding of money and initiates a yearly tax to downgrade any wealth that is not enrolled in the produc¬tion process. Additionally, any type of useless economic activities, such as gaming, magic and jugglery, are forbidden in Islam.

Furthermore, Islam makes it a requirement for Muslims to explore all fields of knowledge and seek any efficient means of production in order to utilize to maximum benefit the natural resources of the environment. The economic strength of Muslims is analogous to their military strength. The power of the Islamic State is judged on the merit of its economic progress and social prosperity. For this reason, Islam places a heavy emphasis on the role of political leadership to regulate social economic activities to enhance economic development and eliminate waste.

Simple Advice to all Stakeholders!

To the Electoral commission, to the Government, to the Political parties, to the Parliament…………..and, of course, to the mesmerized Citizens!

I have dared to take the pen after I was perplexed by the inhumane, shameful, uncivilized and endless political turmoil in our country, Somaliland. I don’t want to say much but only to highlight a straightforward solution which we can take ourselves out of the horrible situation we are in, according my logic. I hope that the concerned stakeholders will reconsider their respective interests and put the national interest on the top of the agenda.
It is easy to point fingers, but it is not my intension to do so, I preferred to catalyze the potentials of the stakeholders if they happen to love their country or continue the ‘dirty game’ if they don’t mind.

My advice is as follows:

To the Electoral Commission

It is the decision that you make today which will either destroy what we have been building for the past two decades or take us forward. You are small in number, only 7, and we have been proud of you to held free and fair election and still we believe in you but you are running out of time. Please act before it is too late. It is you who are supposed to pull the parties together and find common ground; it is you who are supposed to convince and persuade others…..it is shameful to see you taking sides, dividing yourselves into 3 to 4! Hey if you can’t win the battle just give up. But I am sure you can win but only missing one thing, the unity.

Let personal interests fade away, let party interests die and let the national interest take the lead! Today we see how bad things seem but in the face of despair you can create hope, in the face of doubt you can clear the air. Come together, discuss the issue and decide the best way forward. Call the parties before you talk to the media about what you have discussed, consult with them and convince them with openness, sacrifice extra hours if needed. But if you say we have decided so and so and sit aside……….guess what? The “game” continues and the time slips away. Then we find ourselves deep in a trouble which we have deliberately let to get worse and worse!

All eyes are on you! And time will tell what you have done to a nation which you had the chance to lead. But we the people will promise only one thing, to remember what you have done……….good or bad? The ball is in your court!!!!


To the Government and the Parliament:

There are many different types of governments in the world, including are:
• Constitutional Republic: Rule by a government composed of representatives who are voted into power by the people.
• Democratic Government: Rule by a government where all [citizens] are represented but power is held by the majority (for us restricted by Islam).
• Dictatorship: Rule by an individual who has full power over the country.
• Monarchy: Rule by an individual who has inherited the role and expects to bequeath it to their heir.
• Oligarchy: Rule by a small group of people who share similar interests or family relations.
I want you, the government and the Parliament, to look around and decide which path you want to follow. For me, I believe that we have chosen to be a Democratic Government which does not allow any thing against our Islamic Religion. Thus we expect you to work hard to get the confidence of the people. We expect you to respect each other and the only reason for your existence in nothing but to balance each other, so that the national interests are fulfilled. It is quite shameful to see each one of you (the government, Guurti and Representatives) seeing the other as an enemy! We only prosper with your unity and cooperation. I hope that you will all think again and build closer and constructive relations.
To the Parties and the Citizens:
This is what one of my foreign lecturers in the university has to say about the current situation in our country-Somaliland, ‘This is the chance of Somaliland, and it is the only chance given to Somaliland to be an independent country, if they don’t make use of the chance that is gone! And the only way that they can make use of it is; the government, the parties and the commission to give up their private mission (interest)”……many others share the same view and I hope the political Parties to come together, as usual, and find a solution.

Lastly, the people (including me), sooner or later we will have the chance to get the paper and the pen to vote. That is the time we will have our destiny on our hands! So I will expect you to make the right choice, free from everything except Somaliland’s interests.
Long live Somaliland……thanks for reading.

May Allah take us to the right path.

Jama Ismail Noor
jaamacyare11@hotmail.com
Hargeisa, Somaliland.

Somaliland’s Underlying Threat!

(2008/Hargeisa) I hope that we are all convinced that a country’s most valuable asset is the human resource (especially youth). Thus it is each and every individual’s responsibility to make sure that they are healthy and effective if we are to develop and move ahead.

It is quite common in our country, Somaliland, to see thousands of youth in the streets doing nothing except chewing Qat and smoking! That really makes me sad. Isn’t it miserable to misuse your valuable time and ability? The answer may be straight forward….but the fact is that when it comes to practice very few of us take a deep sight to the reality on the grown.

I am writing this article to send a wake up call to the few of us who can understand that we, the youth, are missing a very crucial part of our life. We have the right to be educated; we have the right to get jobs, we have the right to have goals in life, we have the right plan our future, we have the right to unite and use our force constructively like our age mates around the world. But the main question is “do we really make use of those rights?” if no, Why? And who is to blame? I will leave these answers for you......but I believe that we better act than to blame!

Indeed I can’t tell you all about those complexities but I would kindly request all those concerned, be it government, intellectuals, Diaspora community, youth and the community as a whole to join hands and help save the generations to come.

You may share with me that the greatest intimidation to our society and generations is the Qat and you will hardly see any one addressing it. This evil grass has made our boys (and even girls recently) school dropouts, poor, lazy, crazy and unconscious. Let us initiate by lobbying our parliament to pass laws prohibiting a person under 20 to chew or sell QAT. Let us start awareness campaigns to help our teenage know the problems caused by Qat and illustrate the alternatives like career development and creativity.

I am looking forward that you will air your thoughts and act before it is too late!
May Allah make it viable?

By: Jama Ismail Noor
Jaamacyare11@hotmail.com
Hargeisa, Somaliland.