The economic system of Islam (4)

The Islamic economic system is defined by a network of rules called the Shariah. 

The rules which are contained in the Shariah are both constitutive and regulative, meaning that they either lay the rules for the creation of economic entities and systems, as well the rules which regulate existing one.

As an integral part of the revelation, the Shariah is the guide for human action which encompasses every aspect of life – spiritual, individual, social, political, cultural, and economic. 

It provides a scale by which all actions, whether on the part of the individual agents, society, and the state, are classified in regards to their legality. 

Thus there are five types of actions recognized, namely:

§  obligatory;

§  recommended;

§  permissible;

§  discouraged;

§  forbidden. 

This classification is also inclusive of economic behavior.

www.islamreligion.com