A Treatise on Islamic Economics and Redistribution of Wealth

This book is dedicated to Prophet Muhammad (SAW), the final Messenger of Allah [SWT] sent for blessing and mercy for Mankind. The purpose of this research study is to gain understanding of Islamic economics and redistribution of wealth in the contemporary world. This study is evidenced based from authentic sources of Quran and Sunah of the Prophet (SAW) and the work of some Muslim economists. Before embarking on the discussion of the topic of Islamic economics, I felt it necessary to give the readers the background of creation and how humanity came into being and for what purpose and to live on this earth on what constraints. I included this background in the form of the Prelude. This treatise consists of the Prelude and thirteen Chapters. Chapter 1 includes the general introduction on the topic under study. Chapter 2 gives the structure of Shariah and includes sources of Shariah; Fiqh (Islamic Jurisprudence); Administrative System of Shari'ah; Family Relations under Shari'ah; Criminal Law and Punishment under Shari'ah. Chapter 3 covers Economic System under Shari'ah and includes: Introduction; Trade and Commerce; Islamic Economics Organizational Structure in Action by Khulfa-Er-Rashidune; and Developments of Islamic Economics. Chapter 4 covers Monetary and Fiscal Framework of Islam and includes: Introduction; Background to the Monetary and Fiscal Policy of Islam; and Monetary and Fiscal Framework of Islam. Chapter 5 covers Institution of Hisbah and includes: Hibah Defined; Position of Hisbah during the time of the Prophet (SAW); Position of Hisbah after the time of the Prophet (SAW); and the Domain of the Hisbah. Chapter 6 covers the Institution of Zakah and includes: Introduction; Detail of Zakah; and Zakahable Wealth in Terms of its Amount and Ratios. Chapter 7 covers Inheritance and Disposal of Property under Shari'ah and includes: Introduction; Law of Inheritance; and Disposal of Property. Chapter 8 covers Islamic Financial Model for Equity Participation (Musharakah) and includes: Introduction; the Concept of Musharakah; the Basic Rules of Musharakah; the Nature of the Capital; Management of the Musharakah; termination Of Musharakah; termination of Musharakah without Closing the Business; Other Financial Instruments of Islamic Financing; and Islamic Banking. Chapter 9 covers Eradication of Global Poverty through Redistribution of Wealth and includes: Introduction; Role of Zakah in Poverty Alleviation supported with a case study; Role of Waqfs in the Alleviation of Poverty supported with a case study; Role of Microfinance in the Poverty Alleviation supported with a case study. Chapter 10 covers Islamic Economics towards Solution to the Global Economic Crises and includes: Introduction; Causes of the Global Economic Crisis; the G20 Summit and the Global Economic Crisis; International Banking Model; Some Merits of Shari'ah over Man-Made System; and Islamic Alternative too Debt-Based Capitalism. Chapter 11 covers Failure of Muslim World to Implement Shariah and Islamic Economics System and includes: Introduction; and Failure of Muslim World to Implement Shariah with an appeal to the Muslim World to Find a Solution to this Failure. Chapter 12 covers the Critical Review of the Modern Islamic Finance, Banking and Insurance and includes: What is Islamic Finance; the Rules Regarding Islamic Finance; Current Practice Of Islamic Finance; Islamic Banking; Absence of an Effective Supervisory Authority; What Is Islamic Banking; International Islamic Banking; Criticism Of Islamic Banking; the Deceptive Mechanism of Murabahah; and Islamic Insurance. Chapter 13 covers the Summary and Conclusion.