Contract of Sale (Agreement of Buying and Selling)
Components of Islamic Economics
Islamic economics is based on Shariah-compliant trade, in which investment and trade are conducted according to the Shariah rules and regulations in matters permitted by Allah Almighty.
The foundation of these rules is based on the principle that permissibility and halal status in transactions is the original law, and it is obligatory to avoid all kinds of prohibited items, such as interest (usury), etc. The Divine Command is:
«وَأَحَلَّ اللَّهُ الْبَيْعَ وَحَرَّمَ الرِّبَا»
“While Allah has permitted trade and forbidden interest.”
He also said:
«فَإِذَا قُضِيَتِ الصَّلَاةُ فَانتَشِرُوا فِي الْأَرْضِ وَابْتَغُوا مِن فَضْلِ اللَّهِ وَاذْكُرُوا اللَّهَ كَثِيرًا لَّعَلَّكُمْ تُفْلِحُونَ»
“Then when the prayer is finished, disperse in the land and seek Allah’s bounty, and remember Allah much that you may succeed.”
