Handbook on Islam and Economic Life

For many non-professional Muslims, Islamic economics is restricted to the absence of riba (interest), the elimination of uncertainty in business dealings (gharar) and the prohibition of gambling and other speculation (maysir). Thus Islamic economics became synonymous with Islamic finance – as remarked by Umer Chapra (p. 2). But Muslims not only disapproved of laissez-faire capitalism and totalitarian Marxian socialism but put forward their own values and goals (p. 40). A faithful person thus relies on moral forces like altruism, cooperation, brotherhood, fraternity and mutual respect, if not affection, in order to rein in his/her selfishness (p. 4). But Islamic economics, too, has to cope with the scarcity of resources, the pursuit of self-interest, and maximisation of gains: Islam does not deny self-interest but seeks to reign it in (p. 5).