Fiche de révision : Islamic Economics and Social Finance

📋 Course Outline

1. Islamic economic principles
2. Property ownership & trusteeship
3. Market & state roles
4. Incentive mechanisms & ethics
5. Distribution & social justice
6. Riba & prohibition reasons
7. Islamic financial contracts
8. Zakat & wealth redistribution
9. Economic justice & inequality
10. Islamic banking & social finance

📖 1. Islamic Economic Principles

🔑 Key Concepts & Definitions

• Islamic Economics: A social science based on Islamic worldview and methodology, aiming for al-falah (success and well-being) through the ethical management of resources in accordance with Sharia law.

• Falah: The ultimate goal in Islamic economics, meaning success, prosperity, and well-being in both this world and the hereafter, achieved through righteous behavior and just resource distribution.

• Trust (Amanah): The Islamic view that humans are trustees of Allah’s resources, responsible for their proper use, avoiding misuse, and ensuring justice in ownership and utilization.

• Property Ownership in Islam: Recognizes both private and public ownership, with ownership seen as a trust from Allah, emphasizing accountability, ethical use, and social responsibility.

• Incentive Mechanisms: Motivations in Islamic economics include spiritual (pleasing Allah), moral (ethical conduct), material (material rewards), and coercive (legal enforcement), all aimed at promoting justice and righteousness.

• Decision-Making: A balanced approach combining centralized (state) and decentralized (market) mechanisms, guided by Sharia principles, emphasizing consultation (Shura) and collective welfare.

📝 Essential Points

• Foundations: Islamic economics is rooted in the Quran and Hadith, emphasizing justice (adl), fairness, and social responsibility, contrasting with purely materialistic systems.

• Ownership: All resources are ultimately owned by Allah; humans are trustees (Amanah) with conditional and relative ownership rights, which must be exercised ethically and responsibly.

• Property Types: Includes private, public, and common property, with specific regulations for each, such as prohibition of unlawful (haram) ownership and misuse.

• Wealth Distribution: Achieved through zakat, sadaqah, waqf, and inheritance laws, promoting social justice and reducing inequality.

• Incentives: Driven by spiritual rewards (pleasing Allah), moral responsibility, and societal benefits, rather than solely material gains.

• Decision-Making: The Islamic system advocates for consultation (Shura) and collective participation, with the state playing a facilitative role to ensure justice and compliance with Sharia.

• Comparison with Capitalism and Socialism:

  • Emphasizes ethical ownership and social responsibility.
  • Balances private and public ownership.
  • Promotes wealth redistribution through Islamic charity laws.
  • Encourages work for both material and spiritual rewards.

💡 Key Takeaway

Islamic economic principles center on justice, ethical ownership, and social responsibility, advocating for a balanced system where resources are managed as trusts from Allah, with incentives aligned towards spiritual fulfillment and societal welfare.

📖 2. Property ownership & trusteeship

🔑 Key Concepts & Definitions

• Property Ownership: The legal right to possess, use, control, enjoy, transfer, and transform real or personal property within a jurisdiction's regulations.

• Mal/Amwal: Arabic terms in Islamic jurisprudence referring to property, wealth, or assets, encompassing movable and immovable assets, governed by Sharia law.

• Milkiyyah: Ownership or possession, often implying control over property, with the understanding that ultimate ownership belongs to Allah.

• Complete Ownership: Ownership that includes both the asset and its benefits (usufruct), granting full control and rights to transfer, modify, or dispose.

• Incomplete Ownership: Ownership of either the asset or its benefits but not both, such as leasing (Ijarah) or endowments (Waqf), where rights are limited or conditional.

• Public vs. Private Property: Public property is owned collectively or by the state (e.g., natural resources, national defense), while private property is owned by individuals or entities with exclusive rights.

📝 Essential Points

• Islamic Perspective: All resources are considered a trust from Allah; absolute ownership belongs to Allah, and humans act as trustees with conditional and relative ownership rights.

• Ownership Types:

  • Public Property: Managed by the state, accessible for public use (e.g., parks, water).
  • Private Property: Owned by individuals or entities, with rights to use, transfer, and benefit, provided usage aligns with Sharia principles.

• Ownership Rights:

  • Complete: Full control over the asset and its benefits.
  • Incomplete: Rights are limited, such as in leasing or waqf, where ownership is partial or conditional.

• Ownership in Capitalism:

  • Emphasizes private ownership with almost absolute rights.
  • Encourages innovation and wealth accumulation.
  • Minimal state interference, primarily for public necessity.

• Ownership in Socialism:

  • Focuses on public or collective ownership.
  • State controls resources, aiming for equitable distribution.
  • Emphasizes social justice and ethical management.

• Islamic View:

  • Ownership is a trust, with a duty to use resources ethically.
  • Both private and public ownership are permissible.
  • The state has a role in preventing misuse and ensuring welfare.

• Ownership and Wealth Distribution:

  • Islamic system promotes wealth redistribution through zakat, sadaqah, waqf, and inheritance laws.
  • Emphasizes social responsibility and ethical use of wealth.

💡 Key Takeaway

Ownership in Islamic economics is viewed as a trust from Allah, balancing individual rights with social responsibility, contrasting with the absolute private ownership in capitalism and collective ownership in socialism. The system emphasizes ethical use, accountability, and the role of the state in safeguarding resources for societal benefit.

📖 3. Market & State Roles

🔑 Key Concepts & Definitions

• Economic System: A framework of values, mechanisms, and institutions that organize how societies manage resources for consumption, production, and distribution, based on their worldview and cultural norms.

• Islamic Economics: A social science rooted in Islamic worldview, emphasizing justice, cooperation, and trust in Allah, aiming for al-falah (prosperity) through ethical resource management and social responsibility.

• Property Ownership (Islamic View): Recognizes Allah as the absolute owner of all resources; humans act as trustees with conditional, relative ownership, emphasizing accountability and ethical use.

• Market Mechanism: The process through which supply and demand determine resource allocation; in Islamic economics, it operates within shari’ah principles ensuring fairness and justice.

• State Role: The government or authority responsible for regulating, facilitating, and ensuring justice in resource distribution, protecting public interest, and preventing misuse of resources.

• Incentive Mechanism: Motivators that influence behavior, including material rewards, moral duties, spiritual aspirations, and legal enforcement; varies across economic systems.

📝 Essential Points

• Market & State Interaction: The economic system's effectiveness depends on the balance between decentralized market forces and centralized state intervention, aligned with societal values.

• Islamic Economic System:

  • Combines elements of decentralization and central oversight.
  • The state plays a vital role in ensuring compliance with shari’ah, promoting justice, and preventing exploitation.
  • Decision-making involves consultation (Shura), emphasizing collective wisdom and moral responsibility.

• Property Ownership:

  • In Islam, ownership is a trust from Allah, with humans as trustees.
  • Both private and public ownership are permissible, provided resources are used ethically.
  • The state can intervene to prevent misuse and promote social welfare.

• Comparison with Capitalism and Socialism:

  • Capitalism emphasizes private ownership, minimal state interference, and individual incentives.
  • Socialism emphasizes public ownership, equality, and state-controlled resource allocation.
  • Islamic economics advocates for a balanced approach, recognizing divine ownership, ethical use, and social responsibility.

• Incentives:

  • Material incentives motivate economic activity in capitalism.
  • Moral and spiritual incentives are central in Islam, encouraging actions that please Allah and promote social justice.
  • The system discourages greed and materialism, emphasizing accountability and the hereafter.

• Organization of Decision-Making:

  • Capitalism: Decentralized, driven by market forces.
  • Socialism: Centralized, driven by state planning.
  • Islamic System: A hybrid, with consultation (Shura) guiding decisions, ensuring harmony between individual, societal, and divine interests.

💡 Key Takeaway

The Islamic economic system uniquely integrates moral, spiritual, and social principles into market and state roles, promoting justice, ethical resource management, and collective welfare within a framework of divine trust and accountability.

📖 4. Incentive mechanisms & ethics

🔑 Key Concepts & Definitions

• Incentive: A factor that motivates individuals or entities to act in a certain way, influencing their behavior towards specific goals.
• Material/Remunerative Incentive: Rewards in the form of tangible benefits like money, goods, or services for certain actions.
• Moral Incentive: Motivation based on ethical principles, social approval, or personal integrity, encouraging right conduct.
• Spiritual Incentive: Motivation derived from religious beliefs, faith, or spiritual fulfillment, aiming for divine approval.
• Coercive Incentive: Use of force or threat (e.g., penalties, imprisonment) to compel behavior that aligns with certain rules or laws.
• Ethics: Moral principles that govern behavior, emphasizing fairness, justice, and responsibility within economic activities.

📝 Essential Points

• Incentives shape economic behavior and decision-making across different systems: capitalism, socialism, and Islamic economics.
• Material incentives drive productivity and innovation but can lead to materialism if unchecked.
• Moral and spiritual incentives promote ethical conduct, social responsibility, and spiritual fulfillment, central to Islamic economics.
• Coercive incentives are used in socialism and some contexts to enforce compliance and social justice.
• Islamic ethics emphasize accountability before Allah, promoting fairness, justice, and responsible resource use.
• The incentive mechanisms are intertwined with the core values of each system, influencing their approach to wealth distribution, property rights, and social responsibility.
• In Islam, incentives include pleasing Allah, spiritual rewards, and societal approval, fostering a balanced pursuit of material and spiritual goals.
• The ethical framework in Islamic economics discourages greed and waste, advocating for equitable wealth distribution through zakat, sadaqah, and waqf.

💡 Key Takeaway

Incentive mechanisms in Islamic economics integrate material, moral, and spiritual motivations to promote ethical behavior, social justice, and responsible resource management, aligning individual actions with divine and societal goals.

📖 5. Distribution & Social Justice

🔑 Key Concepts & Definitions

• Distribution: The process of allocating resources, wealth, and income among individuals or groups within a society. It can be based on various principles such as equality, need, or contribution.

• Social Justice: The pursuit of a fair and equitable society where resources, opportunities, and privileges are distributed in a manner that promotes fairness, reduces inequality, and upholds human dignity.

• Al-Falah (Falah): An Islamic concept meaning "success" or "prosperity," achieved through justice, righteousness, and proper management of resources in accordance with Islamic principles.

• Zakat: An obligatory form of almsgiving in Islam, which purifies wealth and supports the needy, thereby promoting social justice and wealth redistribution.

• Waqf: An Islamic endowment where assets are dedicated for religious, educational, or charitable purposes, contributing to social welfare and justice.

• Injustice (Jus): The violation of fairness or rights, which in Islamic economics is addressed through mechanisms like zakat, charity, and equitable resource management to restore justice.

📝 Essential Points

• Islamic Perspective on Distribution: Emphasizes justice, equity, and social welfare. Wealth is considered a trust from Allah, and its distribution should serve societal needs, ensuring no one is oppressed or deprived.

• Mechanisms for Social Justice in Islam:

  • Zakat: A fixed percentage of wealth paid annually to assist the poor, support community projects, and reduce inequality.
  • Sadaqah: Voluntary charity that promotes social solidarity.
  • Waqf: Endowments for public benefit, such as schools, hospitals, and mosques, fostering social justice.

• Principles of Fair Distribution:

  • Wealth should be distributed based on need, contribution, and social justice principles.
  • The state has a role in ensuring equitable distribution and preventing exploitation.
  • Private ownership is recognized but must be exercised ethically, with responsibility toward society.

• Comparison with Capitalism and Socialism:

  • Capitalism: Emphasizes private property and market forces; wealth distribution is largely determined by market outcomes, which can lead to inequality.
  • Socialism: Focuses on state or collective ownership; aims for more equal distribution through centralized planning.
  • Islamic System: Balances private ownership with social justice mechanisms like zakat and waqf, promoting equitable wealth distribution while respecting individual rights.

• Goals of Distribution & Social Justice:

  • Achieve al-falah (ultimate success) for individuals and society.
  • Reduce poverty and inequality.
  • Promote social harmony and moral responsibility.

💡 Key Takeaway

The Islamic economic system advocates for a just and equitable distribution of resources, utilizing divine principles and social mechanisms like zakat and waqf to ensure societal well-being, reduce inequality, and achieve true success (al-falah) for all.

📖 6. Riba & Prohibition Reasons

🔑 Key Concepts & Definitions

• Riba: An Arabic term meaning usury or interest, referring to the unjustified increase on loans or trade transactions, which is explicitly prohibited in Islam. It involves charging excess or interest on borrowed money or capital.

• Prohibition (Harām): An act that is forbidden in Islamic law. Riba is considered harām because it leads to injustice and exploitation.

• Injustice (Zulm): Unfair treatment or violation of rights, which Riba promotes by creating unequal wealth distribution and exploitation of borrowers.

• Economic Exploitation: The unfair advantage taken by one party over another, often associated with Riba, as it benefits the lender at the expense of the borrower.

• Wealth Inequality: The uneven distribution of wealth within society, which Riba exacerbates by concentrating wealth among the wealthy and impoverishing the poor.

• Shariah Law: Islamic law derived from the Quran and Sunnah, which explicitly prohibits Riba to promote justice and fairness in economic transactions.

📝 Essential Points

• Rationale for Prohibition:

  • Riba is prohibited because it leads to social injustice, wealth disparity, and economic exploitation.
  • It encourages greed and materialism, diverting society from moral and spiritual values.
  • Riba causes economic instability and discourages productive investment, as it incentivizes earning through interest rather than productive enterprise.

• Quranic and Hadith Evidence:

  • The Quran explicitly forbids Riba in multiple verses (e.g., Surah Al-Baqarah 2:275-279), emphasizing its harmful effects.
  • The Prophet Muhammad (peace be upon him) condemned Riba, equating it with unjust usury and declaring it harām.

• Prohibition Reasons:

  • To prevent injustice and exploitation in financial dealings.
  • To promote equitable wealth distribution and social justice.
  • To encourage real economic activity based on trade, investment, and risk-sharing.
  • To uphold moral and spiritual integrity, aligning economic behavior with Islamic values.

• Consequences of Riba:

  • Economic disparity and social unrest.
  • Hindrance to economic development and productivity.
  • Spiritual harm, as Riba is considered a major sin in Islam.

• Islamic Alternatives:

  • Profit-and-loss sharing schemes (e.g., Musharakah, Mudarabah).
  • Asset-backed financing (e.g., Ijarah, Murabaha).
  • Emphasis on ethical investment and social justice.

💡 Key Takeaway

Riba is strictly prohibited in Islam because it fosters injustice, wealth inequality, and economic instability, contradicting the core Islamic principles of fairness, social justice, and moral integrity. Instead, Islam encourages ethical, risk-sharing, and asset-backed financial transactions to promote equitable prosperity.

📖 7. Islamic Financial Contracts

🔑 Key Concepts & Definitions

• Islamic Financial Contract: An agreement compliant with Sharia law that facilitates financial transactions without involving interest (riba), gambling (maysir), or uncertainty (gharar). It is based on principles of justice, risk-sharing, and ethical conduct.

• Mudarabah: A profit-sharing contract where one party provides capital (rab al-maal) and the other provides expertise and management (mudarib). Profits are shared according to pre-agreed ratios, while losses are borne by the capital provider unless due to misconduct.

• Musharakah: A joint venture contract where all partners contribute capital and share profits and losses proportionally. It emphasizes risk-sharing and mutual cooperation.

• Ijara: A leasing contract where the lessor owns the asset and leases it to the lessee for a fixed period and rent. It resembles conventional leasing but complies with Islamic principles.

• Salam: A forward sale contract where the buyer pays in advance for goods to be delivered later. It is used for agricultural or manufacturing products, with strict conditions to prevent exploitation.

• Istisna: A contract for manufacturing or construction where payment is made in stages, and the seller undertakes to produce or build an asset according to specified conditions.

📝 Essential Points

• Prohibition of Riba: Islamic contracts strictly avoid interest; profits are derived from real economic activity, risk-sharing, and asset-backed transactions.

• Risk-Sharing Principle: Unlike conventional contracts that often transfer risk to one party, Islamic contracts promote equitable risk distribution among parties involved.

• Asset-Backed Transactions: All Islamic contracts are linked to tangible assets or services, ensuring that financial dealings are rooted in real economic activity.

• Contract Conditions: Valid Islamic contracts require free consent, clear terms, and absence of ambiguity (gharar). They must also comply with Sharia principles, including fairness and justice.

• Types of Contracts and Their Uses:

  • Mudarabah and Musharakah: For investment and partnership financing.
  • Ijara: For leasing assets like property, equipment.
  • Salam and Istisna: For pre-paid sales and manufacturing projects.

• Sharia Supervisory Board: An independent body ensures that contracts and financial products adhere to Islamic law, providing legitimacy and ethical compliance.

💡 Key Takeaway

Islamic financial contracts are designed to promote ethical, risk-sharing, and asset-backed transactions, replacing interest-based dealings with principles rooted in justice and real economic activity, thereby fostering a fair and sustainable financial system.

📖 8. Zakat & Wealth Redistribution

🔑 Key Concepts & Definitions

• Zakat: An obligatory form of almsgiving in Islam, calculated as a fixed percentage (usually 2.5%) of certain types of wealth, intended for wealth redistribution and social justice.
• Wealth Redistribution: The process of adjusting the distribution of wealth within a society to promote economic equality and social welfare, often through mechanisms like zakat, sadaqah, waqf, and inheritance laws.
• Falah: The ultimate goal in Islamic economics, meaning success, prosperity, and well-being in both this world and the hereafter, achieved through righteous conduct and equitable wealth distribution.
• Trust from Allah: The Islamic view that all resources and wealth are trusts (amanah) from Allah, and humans are responsible for their proper management and ethical use.
• Injustice Prevention: The role of Islamic economic principles, including zakat, in preventing exploitation, inequality, and injustice in wealth distribution.
• Injunctions of Shari’ah: Islamic legal rules derived from the Quran and Hadith that regulate economic activities, including the obligation of zakat and principles of wealth sharing.

📝 Essential Points

• Purpose of Zakat: To purify wealth, promote social justice, assist the needy, and achieve societal harmony by redistributing wealth from the affluent to the less fortunate.
• Types of Wealth Subject to Zakat: Cash, savings, gold, silver, agricultural produce, business inventory, and certain types of investments, provided they meet nisab (minimum threshold).
• Zakat Calculation & Distribution: Usually 2.5% of eligible wealth annually; distributed to specific categories such as the poor, needy, debtors, and for the cause of Allah.
• Other Wealth Redistribution Mechanisms:
  • Sadaqah: Voluntary charity beyond zakat, promoting voluntary social support.
  • Waqf: Endowment for charitable purposes, ensuring ongoing social welfare.
  • Inheritance Laws: Fair division of wealth among heirs, promoting equitable wealth transfer.
• Role of the State: In Islamic economics, the state facilitates zakat collection and distribution, ensuring social justice and preventing accumulation of wealth in the hands of a few.
• Comparison with Capitalism and Socialism:
  • Capitalism emphasizes private ownership and market forces, with limited redistribution.
  • Socialism advocates for state-controlled redistribution to achieve equality.
  • Islamic system combines individual ownership with mandatory redistribution through zakat and ethical principles.

💡 Key Takeaway

Zakat is a divine obligation in Islam that functions as a vital tool for wealth redistribution, fostering social justice, reducing inequality, and promoting societal harmony in accordance with Islamic principles. It underscores the concept that wealth is a trust from Allah, and its proper management benefits both individuals and the community.

📖 9. Economic justice & inequality

🔑 Key Concepts & Definitions

• Economic Justice: Fair and equitable distribution of resources, opportunities, and wealth within a society, ensuring that all individuals have access to basic needs and fair treatment in economic dealings.

• Inequality: The unequal distribution of income, wealth, or resources among individuals or groups in society, often leading to disparities in living standards, opportunities, and social status.

• Al-Falah: An Islamic concept meaning "success" or "salvation," achieved through justice, righteousness, and balanced development in both worldly and spiritual aspects.

• Zakat: An obligatory form of almsgiving in Islam, serving as a tool for wealth redistribution to reduce inequality and support the needy.

• Trust from Allah: The Islamic view that all resources are a trust (Amanah) from Allah, and humans are trustees responsible for their proper use and equitable distribution.

• Distributive Justice: The ethical principle that resources and wealth should be allocated fairly among members of society, considering needs, contributions, and rights.

📝 Essential Points

• Islamic economics emphasizes al-falah, which aims for societal well-being through justice, cooperation, and equitable resource distribution, contrasting with systems that prioritize profit maximization.

• The Islamic economic system recognizes both private and public ownership, with a focus on social responsibility, ethical use of resources, and wealth redistribution via zakat, sadaqah, and waqf.

• Inequality in conventional systems often results from market forces and private ownership, leading to socioeconomic disparities; Islamic economics seeks to mitigate this through mechanisms like zakat and moral incentives.

• Property ownership in Islam is viewed as a trust from Allah, with the owner accountable for the proper and ethical use of resources, emphasizing social justice over absolute control.

• The state's role in Islamic economics includes facilitating equitable wealth distribution, preventing misuse of resources, and ensuring social welfare, while maintaining a balance between private and public ownership.

• Incentive mechanisms in Islamic economics combine material, moral, spiritual, and coercive incentives, encouraging ethical behavior and obedience to divine principles rather than solely material gains.

• Decision-making in Islamic economics involves consultation (Shura), blending decentralized market interactions with centralized oversight to uphold justice and social harmony.

• Comparison with capitalism and socialism: Islamic economics advocates for a balanced approach—private ownership with social responsibility, wealth redistribution, and ethical conduct—aiming to reduce inequality and promote societal well-being.

💡 Key Takeaway

Islamic economics promotes a just and balanced society by integrating spiritual, moral, and social principles into economic practices, aiming to achieve al-falah through equitable resource distribution and social responsibility, contrasting with systems that often exacerbate inequality.

📖 10. Islamic Banking & Social Finance

🔑 Key Concepts & Definitions

• Islamic Banking: A financial system that operates in accordance with Shariah law, prohibiting interest (riba), promoting risk-sharing, and emphasizing ethical and social responsibility in financial transactions.

• Social Finance: Financial activities aimed at promoting social welfare, justice, and equitable distribution of resources, often through mechanisms like zakat, sadaqah, and waqf, aligned with Islamic principles.

• Riba (Interest): Prohibited in Islam; any guaranteed increase on loaned money or trade of commodities with unjustified excess, considered exploitative.

• Zakat: An obligatory form of almsgiving in Islam, calculated as a fixed percentage of certain assets, intended to purify wealth and assist the needy.

• Waqf: An endowment of property or assets dedicated for charitable or religious purposes, whose benefits are used to support social and community projects.

• Takaful: Islamic insurance based on mutual cooperation, solidarity, and shared responsibility, avoiding elements forbidden by Shariah.

📝 Essential Points

• Principles of Islamic Banking:

  • Prohibition of riba (interest)
  • Profit-and-loss sharing (PLS) arrangements like Mudarabah and Musharakah
  • Asset-backed financing to ensure tangible economic activity
  • Ethical standards promoting justice, fairness, and social responsibility

• Types of Islamic Financial Products:

  • Murabaha: Cost-plus financing
  • Ijara: Leasing arrangements
  • Mudarabah: Profit-sharing partnership
  • Musharakah: Joint venture partnership
  • Sukuk: Islamic bonds representing ownership in tangible assets or projects

• Social Finance in Islam:

  • Uses mechanisms like zakat, sadaqah, and waqf to redistribute wealth and support social welfare
  • Emphasizes ethical investment and social justice
  • Aims to reduce poverty, promote economic inclusion, and foster community development

• Role of Islamic Banking in Society:

  • Promotes financial inclusion and ethical investment
  • Supports social objectives aligned with Islamic values
  • Encourages economic stability through risk-sharing and asset-backed transactions

• Challenges and Opportunities:

  • Developing comprehensive regulatory frameworks
  • Increasing awareness and understanding of Islamic financial products
  • Integrating social finance mechanisms into mainstream finance

💡 Key Takeaway

Islamic banking and social finance operate on ethical principles rooted in Shariah law, emphasizing risk-sharing, asset-backed transactions, and social justice, thereby fostering a financial system that promotes both economic growth and societal well-being.

📊 Synthesis Tables

⚠️ Common Pitfalls & Confusions

1. Confusing absolute private ownership in capitalism with Islamic trusteeship.
2. Overlooking the ethical and social responsibilities embedded in Islamic property rights.
3. Misinterpreting the role of the state as purely interventionist; in Islam, it promotes justice and social welfare.
4. Assuming Islamic economics rejects markets; it integrates market mechanisms within Sharia constraints.
5. Ignoring the spiritual and moral incentives that motivate economic behavior in Islam.
6. Confusing incomplete ownership rights (like waqf or leasing) with full ownership rights.
7. Overgeneralizing socialism as state ownership without considering ethical and social justice aspects emphasized in Islamic finance.

✅ Exam Checklist

• Define Islamic economics and its primary goal (al-falah).
• Explain the concept of Amanah and its implications for resource management.
• Describe the types of property ownership recognized in Islam.
• Differentiate between complete and incomplete ownership with examples.
• Summarize the roles of market and state in Islamic economic systems.
• Discuss how Islamic principles promote justice and social responsibility.
• Identify the main sources of wealth redistribution in Islam (zakat, sadaqah, waqf).
• Explain the prohibition of riba and the reasons behind it.
• List key Islamic financial contracts and their purposes.
• Describe the concept of falah and its relation to economic success.
• Outline the ethical foundations of Islamic economic incentives.
• Compare Islamic ownership principles with capitalist and socialist models.
• Recognize common misconceptions about Islamic economics and property rights.
• Understand the role of incentives—spiritual, moral, material, and legal—in Islamic finance.
• Recall the importance of consultation (Shura) in decision-making.
• Summarize the role of Islamic banking and social finance in promoting economic justice.
• Explain the reasons for riba prohibition and its impact on economic fairness.
• Identify the key mechanisms for wealth redistribution in Islamic finance.
• Describe how Islamic principles address economic inequality and promote al-falah.