In Economic Systems Where is Islam Located?

[Brickjectivity]

I hope the title is clear. Is Islam close to communism, close to capitalism? Where is it?

 

[Spice]

THREAD REVIVAL
Interesting topic
Can anyone inform us on the economic structures of Islamic ruled countries?

 

[Eddi]

In Islam isn't it forbidden to charge interest on a loan? And isn't there an entire Islamic banking sector where there isn't any interest involved?

That's still capitalism, but Islamic capitalism

 

[sun rise]

In Islam isn't it forbidden to charge interest on a loan? And isn't there an entire Islamic banking sector where there isn't any interest involved?

That's still capitalism, but Islamic capitalism

There are Islamic banks in the USA.

The internet is full of opinions on the OP but it appears that some find it closer to capitalism and some compatible with socialism.

 

[Shaul]

In Islam the clerics and the state basically own Allah the money.

 

[Kathryn]

THREAD REVIVAL
Interesting topic
Can anyone inform us on the economic structures of Islamic ruled countries?

I was actually wondering this just the other day. Good call!

 

[Spice]

In Islam the clerics and the state basically own Allah the money.

"own Allah and the money" OR
"owe Allah all the money"?
Or maybe clarity completely different?

 

[Watchmen]

Can I get an Islamic bank no interest loan?

 

[sun rise]

Can I get an Islamic bank no interest loan?

All Islamic loans are no interest since interest is not Islamic.

If you want to buy a home, for example, the bank will buy the home and charge you rent until the loan is repaid. If the bank loans a business money, they will get a share of the profits until the loan is repaid. Such banks make money but not by directly charging interest on the loans.

 

[Augustus]

I hope the title is clear. Is Islam close to communism, close to capitalism? Where is it?

Muhammad was a merchant which is largely accepted even outside of the Islamic theological narratives, legends and hagiographies.

In the Islamic mythology, pre-Islamic Mecca was a major commercial and trading hub, and a major site of pilgrimage for all Arabs which also led to commercial opportunities (in reality it was likely involved in more localised and less lucrative trade and commerce, and at best a site of minor, more localised pilgrimage).

Muslims are instructed to donate a percentage of their wealth to charity each year, but commerce is perfectly acceptable.

So a commercial market economy.

 

[danieldemol]

I hope the title is clear. Is Islam close to communism, close to capitalism? Where is it?

Well according to my understanding there is not one sect of Islam and even within sects there will sometimes be alternative views, so it's a difficult question to answer in my view.

 

[Dimi95]

All Islamic loans are no interest since interest is not Islamic.

If you want to buy a home, for example, the bank will buy the home and charge you rent until the loan is repaid. If the bank loans a business money, they will get a share of the profits until the loan is repaid. Such banks make money but not by directly charging interest on the loans.

Wait wait , they charge rent and plus the loan needs to be repaid? Did i got it right?

 

[Estro Felino]

It depends on the country.
Closer to socialism in Libya, before the NATO destroyed it.

 

[Dimi95]

Muslims are instructed to donate a percentage of their wealth to charity each year, but commerce is perfectly acceptable.

So a commercial market economy.

Yes this is called zakat.
Many rulers and wealthy Muslims build mosques, drinking fountains, hospitals, schools, and other institutions both as a religious duty and to secure the blessings associated with charity.
(Many also used that money to other purposes).

Zakat is one of the 5 pillars of Islam.

However this is their economic principle:
-the abolition of riba, meaning interest on capital
-the institution of mudarabah, meaning profit-loss-sharing system in Islamic economic ventures
-the abolition of israf, meaning wasteful consumption
-the institution of zakah, which is an organized form of social assistance in an Islamic community

I am not so sure that they abolished interest on capital..

 

[Estro Felino]

Yes this is called zakat.
Many rulers and wealthy Muslims build mosques, drinking fountains, hospitals, schools, and other institutions both as a religious duty and to secure the blessings associated with charity.
(Many also used that money to other purposes).

Zakat is one of the 5 pillars of Islam.

However this is their economic principle:
-the abolition of riba, meaning interest on capital
-the institution of mudarabah, meaning profit-loss-sharing system in Islamic economic ventures
-the abolition of israf, meaning wasteful consumption
-the institution of zakah, which is an organized form of social assistance in an Islamic community

I am not so sure that they abolished interest on capital..

Perfect analysis.
I'd say there are countries which condemn the interest rates, and that is absolutely praisable.
I do praise their economic system.

 

[Kfox]

All Islamic loans are no interest since interest is not Islamic.

If you want to buy a home, for example, the bank will buy the home and charge you rent until the loan is repaid. If the bank loans a business money, they will get a share of the profits until the loan is repaid. Such banks make money but not by directly charging interest on the loans.

So if I borrowed a million dollars from such a bank with a 30 year payment plan, I could invest that money into something paying interest, and slowly pay the money back over a 30 year period and keep the interest for myself! then after 30 years the loan is repaid but that million that I repaid is now worth a fraction of what it was worth when I borrowed it due to inflation. Sounds like a good way to make money at the expense of the Islamic Banking system.