Unit 2 Islamic Worldview

IE1001 CIFP/IE5013 MIFP
ISLAMIC ECONOMICS/ECONOMICS FOR ISLAMIC FINANCE
Assoc. Prof. Dr. Magda Ismail
magda@inceif.org
© INCEIF 2017
© INCEIF
© INCEIF 2012.
2016. International Centre for Education in Islamic Finance (INCEIF) (Company No.718736-K) 1
TOPIC 2
ISLAMIC WORLDVIEW
&
ITS RELATION TO ECONOMICS
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2016.
Centre for Education in Islamic Finance (INCEIF) (Company No.718736-K) 2
• The Islamic Worldview
• The Nature and Characteristic of Man
Contents • The Concept of Din and its Significance to
Economic Activity
• Islamic Worldview vs. Secular Worldview.
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WORLDVIEW FROM
Secular Perspective
A worldview is a mental model of reality - a framework of ideas & attitudes

about the world, ourselves, and life, a comprehensive system of beliefs -
with answers for a wide range of questions.
Worldview explain how man perceives this world. It denotes “a set of
implicit or explicit assumptions about the origin of the universe and the
nature of human life”.
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MAN’S WAY OF LIFE
From Secular View
 Separation between religion and other aspects of life,
 Materialistic,
 Individualistic,
 Less socio-economic justice,
 Less public relations,
 less concern with the Hereafter life.
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2016.
ISLAMIC WORLDVIEW
&
ITS RELATION TO ECONOMICS
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2012.
2016.
ISLAMIC WORLDVIEW
To understand the Islamic worldview let us first define the following terms
and show how they can be linked to economic activities.
1. Islam, Din, Iman, A’mal, Ihsan, Tawhid.

2. Relationship between Allah, nature & man.
3. The nature and characteristics of man; man’s role as ‘abd and
khalifah
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DEFINITION OF ISLAM
 Islam is derived from the Arabic root word “SLM” ‫سلم‬, which means peace.
 How to achieve peace of body and mind? Through total submission to the will of
Allah and the obedience of His Law.
 Islam illustrates al-Din, submission, surrender, obedience as well as peace.
 This has manifested that a man can only attain true peace of physical and
spiritual via full surrender, obedience and submission to Allah the Almighty.
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DEFINITION OF DIN
 The world “Din” carries the meaning of Debt, i.e. man is indebted to Allah for
his existence and maintenance.
 From Allah’s point of view, existence is a gift, and from man’s position he
considers this gift as a debt from the Giver.
 This implies that man has to return himself to the Creator by way of din,
conscious, before man return to Allah in state of death.
How?
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DEFINITION OF DIN
 Iman literally means “belief” or “faith”. It is defined as having faith in

Allah.
 The seat of faith is the heart, and to have faith you have to belief in six
articles, they are:
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ARTICLES OF IMAN
To have faith a Muslim should belief in six articles which are:
1. Belief in Allah: Tawhid (Oneness and Unity of Allah). There is only one supreme creator
of the Universe. All comes from Him and all, in the end, converge to Him.
2. Belief in Angels: These are the functionaries of Allah. They Manifest the Majesty of His
rule and never disobey Allah the Almighty.
3. Belief in the Revealed Books: Sent as guidance to mankind on how to worship Allah and
Submit to His will.
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CONT. ARTICLES OF IMAN
4. Belief in the Prophets: Who showed living examples and practices of worshipping Allah. All
prophets/messengers preached that Allah is One and that the Din of Allah is also One, although the
revealed books varied from one messenger to the other.
5. Belief in the Hereafter: To show that every beginning had an end towards Allah, the Infinite- Who Has no
beginning Nor end. Therefore, man shall be accountable for his deeds in the Hereafter and rewarded
accordingly.
6. Belief in al-Qadha wa-al-Qadr (Predestination): A Muslim believes in Qadaa and Qadar which related
to the ultimate power of Allah. Qadaa and Qadar means the Timeless Knowledge of Allah and His power
to plan and execute His plans.
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DEFINITION OF A ‘MAL
 A‘mal (action) is the act, work, deeds of man in this world.
 It is divided into two, good and bad deeds and accordingly man will either
be rewarded or punished in the hereafter.
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PRACTICING A‘MAL IMPLIES
 Man is accountable to Allah for all that he does.
 His life does not end with his death in this world. He has life after
death.
 ‘Amal helps man to organize his life individually and collectively as
provided by shariah guidelines.
 Man is free in his will, choice and action (2:256).
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DEFINITION OF IHSAN (REALIZATION)
 Ihsan literally means kindness, Mercy, beauty, state of relative perfection,

etc. it denotes man’s spiritual relationship with Allah.
 It is also to worship Allah swt with such a presence and concentration as

if one can see Him or as if being unable to see Allah, Allah nevertheless
sees man.
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ALLAH/TAWHID
(ONENESS AND UNITY OF ALLAH)
Allah is the true existence and everything else, including man exist because of Him.
Thus, Man’s prayers, other acts of worship, life and death should all be for the sake
of Allah.
All man activities, if done for the sake of Allah, are considered ‘Ibadah. (al-’mal
‘badah)/including economic activities.
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NATURE
 Nature is the creation of Allah for man. Nature includes both the material
world and the world of the unseen (Ghayb). By exploring both worlds in a
manner prescribed by Allah, man is able to discover many of Allah’s
attributes such as majesty, Grace, Mercy, Glory power, etc.
 All resources in nature are means for man to attain his falah (happiness) in
this world and in the hereafter.
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MAN AND HIS NATURE
 Man is created in the best form (ahsan taqwim). He is made up
of both the body and the spirit, which is Divine and pure at birth.
 He is bestowed with ‘aql, knowledge and free will, which is

constraint by responsibility.
 As such, man is held accountable for all his deeds.
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MAN AS A KHALIFAH
(VICEGERENT/SLAVE)
 Man is the khalifah of Allah or vicegerent on earth and all the resources at his
disposal are a trust (Amanah).
 He must utilize them according to the will of the Creator and he will be held
accountable for any misuse of these resources. It thus, follows that these
resources are means to attain success/ happiness/ falah.
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MAN’S AIM IN LIFE
Man’s aim in life is to achieve happiness not in this world alone but in
the ………………..
HOW?
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MAN’S WAY OF LIFE
From Islamic Perspective
 Belief in a dual worldviews: this world & the hereafter.
 Religion is part of his/her daily life.
 Maslahah of the ummah (public benefit),
 Have ethics, Accountability, Trustworthiness, Transparency, etc. is
part of his manner or behavior.
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DISCUSSION
1. Why Allah (swt) created man?

2. What is the mission of man on this earth?
3. How man can achieve this mission?
4. How to achieve happens after death?
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1. WHY ALLAH CREATED MAN?
 According to Islamic belief, Allah has created man and jinn only to worship Him as come in the
following Quranic verse:
ِ ‫س ِإ ََّّل ِليَ ْعبُد‬
‫ُون‬ ِ ْ ‫ت ْال ِج َّن َو‬
َ ‫اْل ْن‬ ُ ‫َو َما َخلَ ْق‬
I have only created Jinns and men, that They may serve Me
(al-Zariyat 51:56)
 The word worship here encompasses all permissible human activities and intentions as part of
the general act of acceptable worship (ibadah).
 Within the ambit of the Shari’ah, a man’s entire life is an act of worship; as such, his choice
must either follows the commands of Allah (including commercial transactions) or ignores
them for his self-interest.
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2. WHAT IS THE MISSION OF MAN ON EARTH?
ِ ‫ُه َو أ َ ْنشَأ َ ُك ْم ِم َن ْاْل َ ْر‬

‫ض َوا ْست َ ْع َم َر ُك ْم ِفي َها‬
He Who hath produced you From the earth and settled you Therein: (Hud
11:61)
Allah created Man to:

 Live a long live on this earth (through reproduction)
 Worship Allah and work hard (to earn your living)
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COMPARISON BETWEEN THIS LIFE AND THE HEREAFTER
ُ ‫ي ْال َحيَ َو‬

‫ان لَ ْو َكانُوا‬ َ ‫ار اآلَ ِخ َرة َ لَ ِه‬ ٌ ‫َو َما َه ِذ ِه ْال َحيَاة ُ ال ُّد ْنيَا ِإَّلَّ لَ ْه ٌو َولَ ِع‬
َ ‫ب َو ِإ َّن ال َّد‬
َ ‫يَ ْعلَ ُم‬
‫ون‬
What is the life of this world But amusement and play? But verily the Home In
the Hereafter,—that is Life indeed, if they but knew. (al-Ankabut:64)
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MAQASID AL-SHARIAH AND ITS RELATION TO ECONOMICS
 The economic objectives of shariah or the economic maqasid, is the answer

to the question how does shariah address the overall objective of well-
being?
 Through three-stage development model that starts from the satisfaction
of:
1- Necessities (Daruriyyat)
2- Satisfaction of Needs (Hajiyyat)
3- Perfections (Tahsiniyyat)
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THE ISLAMIC WORLDVIEW
(Ru’yat al-Islam li al-Wujud )
 An Islamic world view or Ru’yat al-Islam li al Wujud, is the vision of reality and
truth that appears before our mind’s eye reveling what existence is all about.
 It is defined as “a set of implicit and explicit assumptions about the origin of

the universe as well as the nature and purpose of man not only in this world
but in the hereafter too as fully explained by Allah and practiced by his
messenger”.
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... THE ISLAMIC WORLDVIEW
 Islamic worldview is characterized by an authenticity and finality that points to

what is ultimate, and it projects a view of reality and truth that encompasses
existence and life altogether in total perspective whose fundamental elements are
permanently established.
 The Islamic worldview is based on Islam. All worldviews must include concepts on
Allah/Tawhid, Man/Khilafah, Nature, Man’s aim in life, ‘Adalah.
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CONT. THE ISLAMIC WORLDVIEW
Muslim believe that this world is a temporary place for them to be

tested in order to determine whether they will get the reward or
punishment in the Hereafter.
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ISLAMIC WORLDVIEW
(Ru’yat al-Islam li al-Wujud )
‘Allam Al-Ruh
(Pre-Existent Stage)
Al-Mithaq
(The Pre Covenant)
‘ALLAM-AL-RAHIM
(mother’s womb)
‘Allam Al-Dunyah
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‘Allam Al-Dunyah
(World)
QURAN, SUNNAH, QIYES, IJMA, IJTIHAD MAN-MADE LAWS

(SHARI’AH) (E.G. COMPANY LAWS, CORPORATE
GOVERNANCE CODES)
BUSINESS ACTIVITIES
(MU ‘AMALAT)
TEST
‘ALLAM AL-BARZAKH
(LIFE IN THE GRAVE)
‘ALLAM AL-AKHIRAH (HEREAFTER)

GOOD DEEDS BAD DEEDS
FALAH (REWARDS) SINS/ PUNISHMENT
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... THE ISLAMIC WORLDVIEW
 Hence the Islamic worldview can be described as a dual worldview,
comprising both this world and the Hereafter.
 The Islamic worldview is based on Islam. All worldviews must include
concepts on Allah/Tawhid, Man/Khilafah, Nature, Man’s aim in life,
‘Adalah
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….. THE ISLAMIC WORLDVIEW
Muslim believe that this world is a temporary place for

them to be tested in order to determine whether they will
get the reward or punishment in the Hereafter.
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… ISLAMIC WORLDVIEW
ِ َّ ِ‫ت َويُؤْ ِم ْن ب‬
َ ‫اَّلل فَقَ ِد ا ْست َ ْم‬
‫س َك‬ ِ ‫غو‬ َّ ِ‫الر ْش ُد ِم َن ْالغَي ِ فَ َم ْن يَ ْكفُ ْر ب‬
ُ ‫الطا‬ ُّ ‫ين قَ ْد تَبَي ََّن‬ ِ ‫ََّل ِإ ْك َراهَ فِي‬
ِ ‫الد‬
‫ع ِلي ٌم‬
َ ‫س ِمي ٌع‬ َّ ‫ام لَ َها َو‬
َ ُ‫َّللا‬ َ ‫ص‬ َ ‫ِب ْالعُ ْر َوةِ ْال ُوثْقَى ََّل ا ْن ِف‬
There is no compulsion in religion. Verily, the Right path has become distinct from the
wrong path. Whoever disbelieves in taghut (false deities) and believes in Allah, then
he has grasped the most trustworthy handhold that will never break. And Allah is All-
Hearer, All-knower (Verse 2:256)
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HAPPINESS FROM ISLAMIC PERSPECTIVE
 In al-Quran happiness is termed by the word sa’adah. Whenever the
term sa’adah mentioned in the Quran, it is always related into two
conditions;
1- the happiness in the hereafter (ukhrawiyyah); and
2- happiness in the present world.
 For a Muslim, the ultimate happiness is the happiness in the hereafter

as mentioned by Allah in Surah Hud (11:108):
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HAPPINESS AS IN AL-QURAN
ُ ‫ات َو ْاْل َ ْر‬

‫ض ِإ ََّّل َما شَا َء َرب َُّك‬ ُ ‫س َم َو‬
َّ ‫ت ال‬ َ ‫س ِعدُوا فَ ِفي ْال َجنَّ ِة خَا ِل ِد‬
ِ ‫ين فِي َها َما َدا َم‬ َ ‫َوأ َ َّما الَّ ِذ‬
ُ ‫ين‬
‫غي َْر َم ْجذُو ٍذ‬
َ ‫طا ًء‬َ ‫ع‬َ
‘And those who are happy shall be in the Garden; they will dwell therein o long as the
heaven and the earth endure, except as our Lord will, a gift without break’ . Surah Hud
(11:108):
This sa’adah refers to the happiness which is everlasting, the highest of which is to see
Allah in the hereafter which is promised to those who inwardly have lived in a willing
submission and conscious obedience of Allah’s commands and prohibitions.
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DOES THIS MEANS THAT HAPPINESS CAN NOT BE ATTAIN IN THIS
WORLD?
Prepare one self for the ultimate happiness in the hereafter by having a strong
faith and firm belief in Allah.
It is a state of spiritual tranquility which is everlasting, permanent and stable in
one’s heart.
 It is deep feeling of secure and becoming free from fear, not the fear from
Allah but the fear of the unknown , of the utter loneliness, and more importantly
free from the fear of death and what lie beyond death.
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HAPPINESS ACQUAINTED WITH ETHICS
Happiness must be acquainted with all the good virtues in Islam such as;
Temperance (‘iffah),
Abstinence (wara’),
Piety (taqwa),
Truthfulness (sidq).
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... HAPPINESS IN ISLAM
It is clear that happiness in Islam does not thus refer to the bodily or material aspect
of the human life.
Sometimes the abundant material wealth, excessive physical pleasure contributes to
the prevention of the true happiness.
 How many cases have we seen people with abundant of wealth are deprived from
gaining the true happiness in their life.
Their material bounties, on the other hand, are the very origin and cause of their
unhappiness
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SOURCE OF KNOWLEDGE FOR ECONOMICS
SECULAR KNOWLEDGE
• Acquired Knowledge
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SECULAR KNOWLEDGE
Acquired Knowledge
Secular Economics emerged as a formal discipline not more than THREE CENTURIES. A
quick look at the family tree:
 Economics as a formal discipline finds its origin in Adam Smith (1776),

 Developed further by the classical economists in the late 18th and early 19th centuries
(Malthus 1778, Ricardo 1817) and
 Neoclassical economists of the mid-and-late 19th centuries (Mill 1848, Walras and Marshall
1890).
 It was further advanced in the 20th century by Keynes (1936) and other economists
including the rational expectations and Post-Keynesian schools. The radical stream takes its
shape in the late 19th and early 20th centuries (Marx 1867, Lenin 1914), followed by the
minority of the radical school in the contemporary world.
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SOURCE OF KNOWLEDGE FOR ECONOMICS
ISLAMIC KNOWLEDGE
• Revealed Knowledge (Quran & Sunnah)
• Acquired Knowledge
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CONTRIBUTIONS OF EARLIER MUSLIMS ECONOMIST
Revealed Knowledge
1. Taxation & Public duties Abu Yusuf, Yaqub ibn Ibrahim al-Ansari, Kitab al-Kharaj (113-182 AH/731-798)
2. Ways of earning a living Muhammad bin al Hasan, al- Kasb (132-189AH/750-804AD)
3. Trade and business Abu 'Ubayd's, Kitab al-Amwal (157AH- 224AH /774-837CE)
4. Business Ethics Harith bin Asad al Muhasibi Risalah Adab al-Nufus (165-243AH/781-859AD)
5. Business Ethics Ibn Miskwaih'sd, Tadhib al-Akhlaq (421AH/932-1030AD)
6. Role of government Mawardi's al-Ahkam al Sultlaniah (364-450 AH/c.974AD)
7. Revival of Islamic economics Al Ghazali Ihya' Ulum al-Din (451-505 AH/1058–1111AD)
8. Market governance Ibn Taymiyah al-Hisbah fi al-Islam (661-728H/1263-1328 AD)
9. Labour specialization Ibn Khaldun, al-Muqaddimah (732-808 H/1332-1404 AD)
10. Fiat money/Dinar and Dirham Al-Maqrizi, Taqi Al-Din Ahmad ibn ali, Ighasat al-ummah bi kashf al-ghmmah
(766H/1364AD)
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GUIDE FOR GROUP PRESENTATION
(for face to face only will be shared with the online once done)
Each group has to present only four slides:

1. Biography
2. Major works
3. His economic thoughts
4. His thoughts and its relevance to the current economic situation
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CAN ISLAMIC ECONOMIC SYSTEM (IES) SOLVE THE CURRENT ECONOMICS
.
AND FINANCIAL CRISES?
Can it solve the Huge Gap between the rich

Can it solve the current Debt Crisis?
and the poor?
Can it eradicate Poverty?

Can it provide jobs for all people?
Can it solves the problem of Inflation? Can it help business to grow and be
profitable?
Can it provide a healthy and a just society for all?
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Q&A
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Thank You
Assoc. Prof. Dr. Magda Ismail A. Mohsin

Islamic Economics & Finance
Tel: 03-76514029
Email: magda@inceif.org
© INCEIF
© INCEIF 2012.
2016.

Unit 2 Islamic Worldview

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IE1001 CIFP/IE5013 MIFP

ISLAMIC ECONOMICS/ECONOMICS FOR ISLAMIC FINANCE

Assoc. Prof. Dr. Magda Ismail

A worldview is a mental model of reality - a framework of ideas & attitudes

1. Islam, Din, Iman, A’mal, Ihsan, Tawhid.

 Iman literally means “belief” or “faith”. It is defined as having faith in

 A‘mal (action) is the act, work, deeds of man in this world.

 Ihsan literally means kindness, Mercy, beauty, state of relative perfection,

 It is also to worship Allah swt with such a presence and concentration as

 He is bestowed with ‘aql, knowledge and free will, which is

 As such, man is held accountable for all his deeds.

1. Why Allah (swt) created man?

ِ ‫ُه َو أ َ ْنشَأ َ ُك ْم ِم َن ْاْل َ ْر‬

Allah created Man to:

ُ ‫ي ْال َحيَ َو‬

 The economic objectives of shariah or the economic maqasid, is the answer

 It is defined as “a set of implicit and explicit assumptions about the origin of

 Islamic worldview is characterized by an authenticity and finality that points to

Muslim believe that this world is a temporary place for them to be

QURAN, SUNNAH, QIYES, IJMA, IJTIHAD MAN-MADE LAWS

‘ALLAM AL-AKHIRAH (HEREAFTER)

Muslim believe that this world is a temporary place for

 For a Muslim, the ultimate happiness is the happiness in the hereafter

ُ ‫ات َو ْاْل َ ْر‬

 Economics as a formal discipline finds its origin in Adam Smith (1776),

Each group has to present only four slides:

Can it solve the Huge Gap between the rich

Can it eradicate Poverty?

Can it provide a healthy and a just society for all?

Assoc. Prof. Dr. Magda Ismail A. Mohsin

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