Islam demands a certain type of behaviour from the economic agents –- the consumers and the producers. The behaviour prescribed for the economic units of the society are so devised as to lead to a happy state of affairs, which is the ultimate goal of Islam. An Islamic market is characterized by certain norms that [...]
What is Ethics?
Ethics may be defined as the set of moral principles that distinguish what is right from what is wrong. Ethics has a twofold objective: it evaluates human practices by calling upon moral standards; also it may give prescriptive advice on how to act morally in a given situation. Ethics, therefore, aims to study [...]
Islam gives complete freedom to economic enterprise. Each individual in an Islamic society enjoys complete freedom in the earning of his livelihood. He can start, manage and organize any kind of business enterprise within the limits set by the Islamic Shari‘ah. However, freedom does not and must not operate without a sense of responsibility. An [...]
Question: Is there any right for a mudarib to share the incremental value ofthe rabbul maal’s assets at the time of liquidation? Wassalam, Salim M Basalamah
Answer: The division of profits in a mudarabah is proportional rather than fixed. This being the case, it is possible to specify that the investor’s share will be a certain [...]