Concept of State and Governance in Islam
(Mohammad Masood Ahmed (2025), Would You Like To Know Something About Islam, Second Edition, Crescent Books Inc., New York, USA. Pg. 301-320)
In Islam, the state and governmental systems are not ultimate objectives; rather, they serve as instruments to attain a greater purpose. The Quran and Sunnah do not explicitly endorse any particular governing body, such as a state, nation-state, kingdom, or empire, nor do they delineate a specific type of government—whether democracy, monarchy, dictatorship, or republic. One might wonder, “If Islam encompasses all aspects of life and serves as a complete way of life, why didn’t Allah or the Prophet 
outline a political system or structure for the Muslim ummah?”
To adequately tackle this question and meet everyone's expectations, I would have to explore many specifics, which would stray from the main topic of this book. However, I don't want to leave this question unaddressed, so I will be as concise as possible. I urge the reader to be patient and apply the knowledge gained so far to understand this issue.
As mentioned earlier, Allah sent the first humans, Adam 
and Hawwa 
, to Earth for a temporary stay. They, along with their descendants, were designated as the inhabitants of Earth, where they were to multiply so that all future souls could live and strive towards their ultimate aim: preparing for the Hereafter. We have been, and continue to be, the dwellers of this Earth. We remain the same beings, part of Allah’s creation, identified as humans. Our purpose has not changed. For this reason, guidance—both theoretical and practical—was essential, and we were to receive it through the Prophets 
.
Indeed, there is no necessity for additional divisions or classifications based on color, ethnicity, nationality, or similar criteria. Such arbitrary distinctions have never contributed and will not contribute to our readiness for the Hereafter. In Islam, people are classified into three groups: believers, non-believers, and hypocrites.
As I mentioned before, after my death, I become truly a no-body—simply a dead body. For instance, there is no such thing as a “black” dead body or a “white” one. All dead bodies must be dealt with eventually, irrespective of color, race, or religion. These categories do not fulfill any purpose on earth or elsewhere, and for Allah, they are meaningless. In the eyes of Allah, there exists either the Muslim ummah or those outside of it. Even among the Muslim ummah, there are no separate "nations;" all are part of one ummah. This is the essence of Islam's universality, where distinctions like black and white, American and Chinese, or Arab and non-Arab become irrelevant—all are Muslims.
The Quran and Sunnah provide ample guidance for governing Muslims, which is why Allah and the Prophet did not define a specific governing structure for them. At that time, this aspect was not a priority for Islam. Nevertheless, the guidance within the Quran and Sunnah is sufficient for Muslims to create a just governing system, and Islam encompasses all essential elements needed to operate it effectively.
The rationale for not creating a governing structure was to enable Muslims to select what they considered necessary, just, and proper for themselves. Therefore, upon the passing of the Holy Prophet , Muslims promptly elected a Khalifa (caliph/leader). This led to a natural and fair selection process among the Muslims, resulting in the appointment of a leader to guide the Muslim ummah. From the outset, even without any visible governing structure or perceived need for one, the democratic principle of allowing the people to choose their form of government was ingrained in the Islamic framework. This election not only initiated the process for selecting a leader, namely the Caliph, but also established a governing framework known as Khilafah (caliphate) through the vote and consent of righteous Muslims.
The Holy Quran did not establish a political state, nor did the Holy Prophet . Upon arriving in Madinah, the Prophet formed treaties with local tribes to ensure peaceful coexistence and promote Islam. He did not refer to any Islamic political entity or claim to be a political leader of Muslims; instead, he identified solely as the Holy Prophet of the Lord. Even in his letters inviting kings and rulers of nearby empires to embrace Islam, he consistently refrained from mentioning any Islamic political structure or holding any status within it, other than as the Holy Prophet of Allah.
The Holy Prophet wisely refrained from adopting political titles like governor or king, as his status as a prophet transcended any such designations. Additionally, he did not set geographical limits for Islam, which are usually essential for forming an independent state.
Islam aims to serve the entire world and future generations, which is why both, the Quran and Sunnah refer to the Muslim ummah as a diverse entity capable of including everyone from a handful to billions, transcending boundaries. These texts provide guidance to Muslims on managing ummah affairs, including leadership, community service, law establishment, justice delivery, punishment enforcement, new law derivation from religious texts, Islam propagation, minority assistance, financial and social system creation, foreign affairs management, defense and protection, treaty formation, ummah strengthening, consensus building, power allocation, and leader adherence, as well as forming oppositions. These core principles were articulated by the Holy Quran and demonstrated by the Prophet .
A Muslim’s primary purpose in life is to worship Allah by fulfilling His rights and the rights of others. While adhering to the teachings of the Quran and Sunnah, Muslims are permitted to choose or create any political or governing system they deem appropriate for their circumstances, provided that its foundation is based on the following principles:
- Allah is the All-Sovereign.
- The Quran and Sunnah are the supreme law of the land.
- Governors are servants of the people and must never abuse their authority. Both the government and those governed must adhere to Islamic Shariah.
- Justice must be served equitably; no one is above the law. In matters of justice, no distinction should be made between the rich and the poor, officials and the public, and so forth.
- A leader must meet all the necessary requirements to serve and represent Muslims, and he must possess good moral character along with all the virtues prescribed by Islam.
- The affairs of the ummah should be conducted with the consultation of a shura (an advisory board).
- Above all, the rights of Allah and the rights of the people, both Muslim and non-Muslim, must be fulfilled and observed.
- Muslims have the right, power, and duty to remove unjust and unrighteous leaders, but they are required to follow them unconditionally as long as they act in accordance with Islamic Shariah (law).
Systems Of Governance
Theocracy
An ideal Islamic government should not be labeled theocratic since, while it operates under religious rules and commandments, its enforcers do not purport to be divinely inspired. Such claims would be considered blasphemous. Additionally, Islam lacks a religious hierarchy. In this form of government, Muslim officials are tasked solely with enforcing laws derived from the Quran and Sunnah, and they do not hold authority above these texts. No individual or group is entitled to govern others in the name of Islam unless they adhere to Islamic principles. Allah and the Prophet hold authority; everything else aligns under them. No sort of obedience or loyalty can be pursued that contradicts Allah’s commandments.
Church And State
An Islamic government is fundamentally different from a secular one, where religion does not play a role or determine the direction of state affairs. A secular government distances itself from following any religion or supernatural guidance. Religious institutions manage the religious aspects of human life, while the state oversees the secular aspects of life.
The timing and manner in which the separation of church and state was established are topics that historians have explored. I can only speculate that this separation emerged from the church failing to fulfill its role adequately and betraying the trust placed in it, or from its disinterest in addressing people’s issues, becoming overly political and authoritative, or withdrawing from public affairs. Alternatively, the ideology it represented may have become outdated and ineffective in alleviating human suffering, or it could have been deemed too sacred to engage in state matters. Finally, it might have become a hindrance to state objectives, necessitating the separation. In any case, this separation has proven to be a prudent choice, as history demonstrates its beneficial outcomes.
As I mentioned earlier, in Islam, no part of life can be defined as secular. Islam is not just a religion; it does not only address otherworldly matters. Instead, it is a complete way of life, providing guidance for every aspect of both this world and the next. Since Muslims practice Islam fully and Islamic governments enforce Islamic law, nothing can be considered secular.
Islamic rules are applicable regardless of location, whether in a mosque or elsewhere in the world. Therefore, no physical or conceptual barrier exists between mosque and state. For Muslims, the entire world is considered a mosque 1, which means that Islamic principles apply universally. Muslims are always subject to some Islamic regulations, wherever they may be and in whatever activities they engage in. There is no conflict between the rules for various settings or circumstances. In Islam, phrases like “business is business” or concepts such as “everything is permissible in love and war" hold no ground. It is essential for all Muslims to strictly uphold the law at all times, whether they are alone or in a public setting.
An imam (prayer leader) of a mosque and a governor of a Muslim state are not above the law; neither has the authority to produce separate guiding rules for themselves. There is only one set of rules: Islamic Shariah, which both must follow. In cases of any violation of Islamic law, a state adhering to Islamic principles can intervene in the affairs of a mosque. In contrast, a mosque that adheres to Islamic principles can become involved in state matters. Both institutions operate under the broader umbrella of Islam, catering to the needs of individuals and society. Therefore, there cannot be, nor is there, a separation of “church” and “state” in Islam.
One of Islam's defining qualities is its unwavering adherence to its principles, regardless of their perceived insignificance, in pursuit of a greater good; the ultimate outcome rests with Allah. Additionally, Islam maintains a harmonious framework where its principles do not contradict one another. Followers are not permitted to pursue their goals by any means necessary. There is no justification for deliberate violations, even if claimed for a higher purpose. If this impacts someone’s aspirations, they must adjust their approach rather than alter Islamic rules; the integrity of Islamic principles must be preserved.
Authoritarian
Islam's requirement for strict adherence to its laws does not equate to authoritarianism. Authoritarianism refers to the control by an individual or a group that does not exist within the framework of Islam. In Islam, sovereignty and authority are attributed to the Lord and His commandments. Given that power tends to corrupt, any authoritarian regime is likely to become unjust and corrupt. While Allah is All-Powerful, He is also just. Therefore, if Allah Himself embodies justice, He could not endorse a system of authoritarianism that leads to widespread injustices.
Monarchy
A monarchy also does not qualify as the type of government that Islam would support because it is not established by the consent of the people. A monarch is the absolute ruler of their kingdom, wielding complete sovereignty over their subjects. There is a higher likelihood of him abusing his unchecked power, since the people have no voice in a monarchy and are merely subjected to his authoritarian rule. Furthermore, authority is typically passed down from the king to his son, regardless of his capability. Islam does not endorse such a system because it directly contradicts its foundational principles, in which Allah is the Sovereign and people are subject only to His rules.
Democracy
Democracy, as a system established, replaced, and governed by its citizens, aligns closely with Islamic ideals. The khilafa, initiated by early Muslims, is perhaps the most similar form of governance to democracy. However, in contrast to democratic practices, Islam does not grant individuals the authority to amend fundamental laws or systems—these are divinely ordained by Allah and His Prophet . Consequently, interest groups cannot manipulate state policies for their own benefit. In Islam, there is no role for such groups. The government is tasked with addressing the needs of all societal segments fairly and justly, avoiding favoritism or elitism.
Islam would not have favored the contemporary nation-state setting, as this does not create one Muslim ummah but rather distinct nations. In a nation-state context, a person's identity is based on their birthplace; however, in Islam, being a Muslim is a sufficient identity in itself. In Islam, everyone is part of the Muslim ummah, rather than being defined by separate nationalities. In nation-states, interaction among people is limited due to geographical boundaries, border controls, and various political and economic reasons. Within the contemporary framework of nation-states, the Muslim Brotherhood is diluted. Instead of prioritizing their identity as Muslim brothers, individuals identify as Pakistani, Iraqi, Syrian, Egyptian, Indonesian, Turkish, and so on. Nevertheless, if it were not for the occasion of Hajj, where Muslim unity, equality, and brotherhood are vividly demonstrated, sentiments of nationalism would have otherwise completely diminished Muslim brotherhood.
While the ideal of a unified Ummah remains central to Islamic thought, the current reality is that Muslims have, for various historical and practical reasons, made substantial progress through the formation of nation-states. Given these developments, it may not be immediately feasible to dissolve the nation-state system. However, if Muslim-majority states genuinely adopt Islamic principles in governance and social life, they can still reflect the spirit of unity and cooperation that the concept of Ummah embodies.
By carefully analyzing the commandments of Allah and related ahadith of the Prophet , we can draw a clear picture and an accurate blueprint of an Islamic government. It would resemble the system of governance established by the companions of the Prophet upon his passing, which was authentically Islamic and inclusive of democratic principles. For someone who would like to have a term for this system of governance, I would humbly propose an “Islamocracy,” where:
- Allah , the Omnipotent, is the All-Sovereign. All authority lies with Him, and He possesses absolute power.
- Allah’s commandments and the Prophet’s teachings serve as the guiding posts in executing governmental affairs.
- The government’s “in-charge,” chosen by the people directly or indirectly through their representatives, acts as the vicegerent of the Prophet , exercising the authority vested in him by Islamic Shariah.
- This “in-charge,” the vicegerent or any other appropriate title given to him, is not a “ruler” but serves the Muslim ummah. He does not hold any special rights, privileges, or immunity of any kind, and he is not above the law.
- There should be no term limit; however, he can be removed as soon as he acts contrary to Islamic rules or becomes incompetent.
- He must manage the daily affairs of the state by consulting with the shura, a body of dignitaries selected by him and/or elected by the people.
- He should be physically fit, mentally sound, and possess wisdom and knowledge. He needs to maintain strong moral character and exhibit qualities such as piety, kindness, selflessness, and justice. Furthermore, he should exemplify other Islamic virtues and be free from all vices.
- An Islamic state's purpose is to implement and uphold Islamic principles, collect and properly allocate Zakat, protect the lives, rights, and properties of all its citizens, regardless of their faith, safeguard the nation, administer justice impartially, and meet the essential needs of citizens.
Overall, the primary duty of the Islamic state is to promote and support Al-amr bil-ma’ruf (enjoining good) and wan-nahyu ‘anil-munkar (forbidding evil). The following Quranic verses and ahadith provide a clearer understanding.
الَّذِينَ إِن مَّكَّنَّاهُمْ فِي الْأَرْضِ أَقَامُوا الصَّلَاةَ وَآتَوُا الزَّكَاةَ وَأَمَرُوا بِالْمَعْرُوفِ وَنَهَوْا عَنِ الْمُنكَرِوَلِلَّهِ عَاقِبَةُ الْأُمُورِ 412
Those people, as We fortified them in the land, they established prayer (salah) and kept giving obligatory charity (Zakat) and kept commanding to enjoin good and to forbid evil. And up to Allah is the outcome of all deeds.
كُنتُمْ خَيْرَ أُمَّةٍ أُخْرِجَتْ لِلنَّاسِ تَأْمُرُونَ بِالْمَعْرُوفِ وَتَنْهَوْنَ عَنِ الْمُنكَرِ وَتُؤْمِنُونَ بِاللَّهِ ... 3
You are better among all those nations that appeared for people, that you enjoin good and forbid evil and believe in Allah …
...وَتَعَاوَنُوا عَلَى الْبِرِّ وَالتَّقْوَىٰ ۖ وَلَا تَعَاوَنُوا عَلَى الْإِثْمِ وَالْعُدْوَانِ ۚ وَاتَّقُوا اللَّهَ... 4
…mutually keep helping one another in good and in piety. And do not help in sin and in cruelty, and fear Allah…
تِلْكَ الدَّارُ الْآخِرَةُ نَجْعَلُهَا لِلَّذِينَ لَا يُرِيدُونَ عُلُوًّا فِي الْأَرْضِ وَلَا فَسَادًا ۚ وَالْعَاقِبَةُ لِلْمُتَّقِينَ 835
These abodes of the Hereafter We make for those who do not wish to be superior on Earth and cause mischief. And safe outcome is for the fearful ones.
وَالَّذِينَ اسْتَجَابُوا لِرَبِّهِمْ وَأَقَامُوا الصَّلَاةَ وَأَمْرُهُمْ شُورَىٰ بَيْنَهُمْ... 6
And those who have accepted their Lord and established the prayer (salah); and their practice is to consult among each other…
....وَشَاوِرْهُمْ فِي الْأَمْرِ... 7
…and (O Prophet!) …consult with them in matters…
...وَأُمِرْتُ لِأَعْدِلَ بَيْنَكُمُ... 8
…and (say), “I have been commanded to keep doing justice between you people…”
أَلَمْ تَعْلَمْ أَنَّ اللَّهَ لَهُ مُلْكُ السَّمَاوَاتِ وَالْأَرْضِ وَمَا لَكُم مِّن دُونِ اللَّهِ مِن وَلِيٍّ وَلَا نَصِيرٍ 1079
Do you not know that certainly Allah has control over the Heavens and Earth and that no one can save or protect you apart from Him.
....وَلَهُ الْحُكْمُ... 10
…and the command is His…
....إِنِ الْحُكْمُ إِلَّا لِلَّهِ 11
…the command is Allah’s alone…
....قُلْ إِنَّ الْأَمْرَ كُلَّهُ لِلَّهِ 12
…say, “Control is indeed absolutely of Allah” …
....لِلَّهِ الْأَمْرُ مِن قَبْلُ وَمِن بَعْدُ... 13
…indeed, it is Allah’s command, prior to and after…
....إِنَّ اللَّهَ يَحْكُمُ مَا يُرِيدُ 14
…certainly, Allah commands whatever He wills.
أَلَيْسَ اللَّهُ بِأَحْكَمِ الْحَاكِمِينَ 815
is Allah not the Greatest Lord of all lords?
قُلِ اللَّهُمَّ مَالِكَ الْمُلْكِ تُؤْتِي الْمُلْكَ مَن تَشَاءُ وَتَنزِعُ الْمُلْكَ مِمَّن تَشَاءُ وَتُعِزُّ مَن تَشَاءُ وَتُذِلُّ مَن تَشَاءُ ۖ بِيَدِكَ الْخَيْرُ ۖ إِنَّكَ عَلَىٰ كُلِّ شَيْءٍ قَدِيرٌ 2616
Say, “O Allah, The Owner of all kingdoms! —You give authority to whomever You will and seize it from whomever You will. And (You) dignify whomever You will and defame whomever You will. Indeed, in Your control is all goodness; certainly, You have power over what You will.
...إِنَّ الْأَرْضَ لِلَّهِ يُورِثُهَا مَن يَشَاءُ مِنْ عِبَادِهِ...12817
…certainly, the earth belongs to Allah; makes owner whomever He wills from among His slaves…
....تِلْكَ حُدُودُ اللَّهِ فَلَا تَعْتَدُوهَا ۚ وَمَن يَتَعَدَّ حُدُودَ اللَّهِ فَأُولَٰئِكَ هُمُ الظَّالِمُونَ 22918
…these are limits (set by) Allah, so do not cross them; and those who cross the limits (set by) Allah, they indeed are the oppressors.
....وَمَن لَّمْ يَحْكُم بِمَا أَنزَلَ اللَّهُ فَأُولَٰئِكَ هُمُ الْكَافِرُونَ 4419
…and those who did not judge according to this that Allah revealed, so indeed they are unbelievers.
....وَمَن لَّمْ يَحْكُم بِمَا أَنزَلَ اللَّهُ فَأُولَٰئِكَ هُمُ الظَّالِمُونَ 4520
…and those who did not judge according to this that Allah revealed, so indeed they are wrongdoers.
....وَمَن لَّمْ يَحْكُم بِمَا أَنزَلَ اللَّهُ فَأُولَٰئِكَ هُمُ الْفَاسِقُونَ 4721
…and those who did not judge according to this that Allah revealed, so indeed they are rebellious.
يَا أَيُّهَا الَّذِينَ آمَنُوا أَطِيعُوا اللَّهَ وَأَطِيعُوا الرَّسُولَ وَأُولِي الْأَمْرِ مِنكُمْ ۖ فَإِن تَنَازَعْتُمْ فِي شَيْءٍ فَرُدُّوهُ إِلَى اللَّهِ وَالرَّسُولِ... 22
O you who brought faith! Obey Allah and obey the Prophet (
وَلَا تُطِيعُوا أَمْرَ الْمُسْرِفِينَ 151 الَّذِينَ يُفْسِدُونَ فِي الْأَرْضِ وَلَا يُصْلِحُونَ 15223
And do not follow the orders of those who are extravagant, who cause chaos on earth and do not rectify.
...وَإِذَا حَكَمْتُم بَيْنَ النَّاسِ أَن تَحْكُمُوا بِالْعَدْلِ... 24
…whenever you judge among people, so judge with justice…
...وَأَوْفُوا بِالْعَهْدِ ۖ إِنَّ الْعَهْدَ كَانَ مَسْئُولًا 3425
…and you people, keep fulfilling promises. Certainly, questions will be asked about promises (on the Day of Judgment).
....فَمَا اسْتَقَامُوا لَكُمْ فَاسْتَقِيمُوا لَهُمْ ۚ إِنَّ اللَّهَ يُحِبُّ الْمُتَّقِينَ 726
…so as long as they remain steadfast on that (agreement) for you, you too remain steadfast for them. Certainly, Allah holds dear the pious ones.
إِلَّا الَّذِينَ عَاهَدتُّم مِّنَ الْمُشْرِكِينَ ثُمَّ لَمْ يَنقُصُوكُمْ شَيْئًا وَلَمْ يُظَاهِرُوا عَلَيْكُمْ أَحَدًا فَأَتِمُّوا إِلَيْهِمْ عَهْدَهُمْ إِلَىٰ مُدَّتِهِمْ ۚ إِنَّ اللَّهَ يُحِبُّ الْمُتَّقِينَ 427
…with those disbelievers with whom you made a truce, then they did not fall short and did not incite anyone against you, so fulfill the truce until its term. Certainly, Allah likes the pious ones.
وَإِمَّا تَخَافَنَّ مِن قَوْمٍ خِيَانَةً فَانبِذْ إِلَيْهِمْ عَلَىٰ سَوَاءٍ ۚ إِنَّ اللَّهَ لَا يُحِبُّ الْخَائِنِينَ 5828
And if you fear any nation’s breach of trust, so throw the truce towards them equally. Certainly, Allah does not like traitors.
وَإِن جَنَحُوا لِلسَّلْمِ فَاجْنَحْ لَهَا وَتَوَكَّلْ عَلَى اللَّهِ ۚ إِنَّهُ هُوَ السَّمِيعُ الْعَلِيمُ 61 وَإِن يُرِيدُوا أَن يَخْدَعُوكَ فَإِنَّ حَسْبَكَ اللَّهُ ۚ هُوَ الَّذِي أَيَّدَكَ بِنَصْرِهِ وَبِالْمُؤْمِنِينَ 6229
And if those people wished to make peace, so you accept the truce, and have trust in Allah. Certainly, He indeed is All-Hearing, All-Knowledgeable. And if they want to deceive you, so without a doubt, for you, Allah is sufficient.
لَّا يَنْهَاكُمُ اللَّهُ عَنِ الَّذِينَ لَمْ يُقَاتِلُوكُمْ فِي الدِّينِ وَلَمْ يُخْرِجُوكُم مِّن دِيَارِكُمْ أَن تَبَرُّوهُمْ وَتُقْسِطُوا إِلَيْهِمْ ۚ إِنَّ اللَّهَ يُحِبُّ الْمُقْسِطِينَ 830
Allah does not stop you from those who did not fight with you about the religion of Islam and did not throw you out of your homes, that you keep good relations with them and be just to them. Certainly, Allah likes those who are just.
...فَمَنِ اعْتَدَىٰ عَلَيْكُمْ فَاعْتَدُوا عَلَيْهِ بِمِثْلِ مَا اعْتَدَىٰ عَلَيْكُمْ ۚ وَاتَّقُوا اللَّهَ وَاعْلَمُوا أَنَّ اللَّهَ مَعَ الْمُتَّقِينَ 19431
…so whoever oppressed you, so you too oppress them in the same manner he oppressed you. And fear Allah, and believe that Allah is certainly with the fearful ones.
وَإِنْ عَاقَبْتُمْ فَعَاقِبُوا بِمِثْلِ مَا عُوقِبْتُم بِهِ ۖ وَلَئِن صَبَرْتُمْ لَهُوَ خَيْرٌ لِّلصَّابِرِينَ 12632
And if you punish for the crime, so do it equal to the crime as done to you. And if you practice patience, so without a doubt, this is better for those who are patient.
Prophet Muhammad said:
The nations that have gone before you were destroyed because they punished criminals from the lower class according to the law and pardoned those from the upper class. I swear to that Being (Allah), in Whose hands is my soul, that even if Fatimah, the daughter of Muhammad (
Any ruler who is in charge of the matters of any community of Muslims, if he dies in a condition that he used to deceive and betray their trust, so Allah will forbid Heaven for him. 34
Any governor who takes control of any department of a Muslim government and then does not fulfill his duties wholeheartedly and does not work with sincerity will definitely not enter Paradise with Muslims. 35
It is obligatory for a Muslim to listen to and be obedient to his ruler, whether he likes or dislikes his rule, until he is commanded to perform a sinful act; and when commanded to commit sin, then there is no listening and following. 36
The following is a famous hadith of the Prophet :
There is no following in the disobedience of Allah; following is only in good. 37
This implies that if the individual in charge of Muslims’ matters becomes disobedient to Allah’s rules and commandments, following him is not obligatory. Obedience is necessary only when engaging in righteous or good actions.
By examining the period of Khilafah Al-Rashidun, the first Four righteous Caliphs, we can gain insights into the political entity and governance system that Islam aims to create, along with the results it achieved.
The Honorable Abu Bakr Al-Siddiq 
, the closest Companion of the Prophet , was elected as the First Caliph immediately after the beloved Prophet’s passing. He addressed the Muslim ummah as follows:
Obey me as long as I am in the obedience of Allah and of His Prophet (
On another occasion, the First Khalifa said:
The one who has been made in charge will be held heavily accountable and will be greatly in danger of punishment on the Day of Judgment, because he is more likely to cause harm to people. The one who oppresses his people betrays Allah. 39
The Second Khalifa, the Honorable Umar ibn Al-Khattab , in Madinah at the time, said:
I fear that even if a lamb is wasted far away at the bank of Al-Furat (Euphrates River), Allah will hold me accountable for it. 40
On another occasion, he said:
There is no khalifa without consultation (of shura). 41
The Fourth Khalifa, the Honorable Ali ibn Abi Talib , once said:
While in the obedience of Allah, whatever command I give you, it is incumbent upon you to obey and follow, regardless of your like or dislike of it; and if I decree something upon you in Allah’s disobedience, so there is no obligation of obedience for anyone. 42
One day, Umar , the Second Khalifa, encountered an old woman in a secluded area. He overheard her cursing him for not addressing her needs, which left her in pain and feeling helpless. He paused and inquired, “What if the Khalifa is unaware of your circumstances?” She responded, “Then he has no right to serve as a Khalifa of the Muslim ummah!” 43
These standards originated from the teachings of Islam and the practices of early Muslims, guiding the establishment and management of political entities. Nowadays, we do not observe similar examples. This does not point to any shortcomings in Islam; instead, it is regrettable that Muslims have not been able to uphold and replicate these standards.
It is important to note that Islam is not dependent on an Islamic government. While it is beneficial for Muslims to have an Islamic system of governance and to live in an Islamic state, which can certainly help them, Muslims can survive without jeopardizing their beliefs and religious practices in the absence of such a government.
In Islam, the foremost goal is to become a genuine Muslim. When obstacles arise that hinder the fulfillment of religious duties in a certain location, Islam offers significant rewards for those who migrate to places with greater religious freedom. If migration is not feasible and individuals face suffering and oppression, accountability for religious obligations lies with Allah. Muslims must continue to uphold their beliefs and practice them as much as possible. Undoubtedly, Islam allows for flexibility for Muslims residing in non-Muslim countries. Nevertheless, there are no valid excuses or justifications for neglecting the required practices under any circumstances.
The Economic System in Islam
The primary goal of the islamic economic model is to alleviate financial difficulties and promote economic independence and prosperity fairly. Establishing this model should align with Islamic principles and promote happiness and peace among people, enabling them to pursue their ultimate goals.
Islam does not oppose encouraging the pursuit of wealth but establishes limits to ensure that this process does not harm others, either overtly or covertly. It opposes scenarios where a few enjoy all the profits and economic benefits while many suffer losses. The religion rejects financial systems that allow some to feel secure from risk while others struggle to attain financial independence. The following Quranic verses and ahadith illustrate the principles of the Islamic economic system.
Allah states:
وَابْتَغِ فِيمَا آتَاكَ اللَّهُ الدَّارَ الْآخِرَةَ ۖ وَلَا تَنسَ نَصِيبَكَ مِنَ الدُّنْيَا ۖ وَأَحْسِن كَمَا أَحْسَنَ اللَّهُ إِلَيْكَ ۖ وَلَا تَبْغِ الْفَسَادَ فِي الْأَرْضِ ۖ إِنَّ اللَّهَ لَا يُحِبُّ الْمُفْسِدِينَ 7744
And seek into the wealth given to you by Allah, the abode of the Hereafter, and do not be unmindful of your worldly share, and do favors as Allah sent favor onto you. And do not wish to cause chaos in society. Certainly, Allah does not like those who create chaos.
وَلَقَدْ مَكَّنَّاكُمْ فِي الْأَرْضِ وَجَعَلْنَا لَكُمْ فِيهَا مَعَايِشَ قَلِيلًا مَّا تَشْكُرُونَ 1045
And, certainly indeed, We have fortified you on Earth and produced for you the sustenance of life in it. You people are least grateful.
فَإِذَا قُضِيَتِ الصَّلَاةُ فَانتَشِرُوا فِي الْأَرْضِ وَابْتَغُوا مِن فَضْلِ اللَّهِ وَاذْكُرُوا اللَّهَ كَثِيرًا لَّعَلَّكُمْ تُفْلِحُونَ 1046
Then, when salah (obligatory prayers of worship) is completed, so disperse on Earth and seek Allah’s bounties, and remember Allah much, that you may be successful.
....وَأَحَلَّ اللَّهُ الْبَيْعَ وَحَرَّمَ الرِّبَا 47
Trade is made permissible by Allah and interest is made prohibited.
الَّذِينَ يَأْكُلُونَ الرِّبَا لَا يَقُومُونَ إِلَّا كَمَا يَقُومُ الَّذِي يَتَخَبَّطُهُ الشَّيْطَانُ مِنَ الْمَسِّ ۚ ذَٰلِكَ بِأَنَّهُمْ قَالُوا إِنَّمَا الْبَيْعُ مِثْلُ الرِّبَا 48
Those who consume interest will not stand on Doomsday, except as stands he who is horrified by the touch of a demon. This is so because they used to say, “Trade is indeed just like interest” …
يَمْحَقُ اللَّهُ الرِّبَا وَيُرْبِي الصَّدَقَاتِ وَاللَّهُ لَا يُحِبُّ كُلَّ كَفَّارٍ أَثِيمٍ 27649
Allah wipes out interest (earnings) and increases charities, and Allah does not like any ungrateful sinner.
فَإِن لَّمْ تَفْعَلُوا فَأْذَنُوا بِحَرْبٍ مِّنَ اللَّهِ وَرَسُولِهِ ۖ وَإِن تُبْتُمْ فَلَكُمْ رُءُوسُ أَمْوَالِكُمْ... 50
Hence, if you do not do this, then prepare to fight Allah and His Prophet, and if you surrender, then for you is your actual principal…Prophet Muhammad
said:The honest and trustworthy tradesmen will be with the Prophets (
There is no better food to be eaten than that earned by the work of one’s own hands. 52
Making honest and permissible earnings is the obligation second to the obligation of salah. 53
Prophet Muhammad further stated:
The body nourished with prohibited earnings is most deserving to be in the Hellfire. The one who brings sellable items to the market to sell earns great rewards, and the one who hoards is like an hypocrite. 54
The one who brings items of trade in the market (to sell) gets provisions, and the one who hoards is damned. 55
The Prophet firmly forbade charging interest on loans and outlined harsh penalties for those engaged in usury.
The Islamic economic system prioritizes the welfare of individuals and society over money and wealth. Its goal is to foster a humanistic society instead of a materialistic one. In Islam, accumulating wealth serves as a means to achieve peace, widespread prosperity, and a healthy environment, all contributing to ultimate success. The purpose of economic activities lies not in maximizing profits but in enhancing the production of goods, meeting people’s needs, and stimulating economic growth.
Just as everything else, wealth also belongs to Allah. He gives it to whom He wills. Allah reveals:
....وَإِنْ خِفْتُمْ عَيْلَةً فَسَوْفَ يُغْنِيكُمُ اللَّهُ مِن فَضْلِهِ إِن شَاءَ 56
…and if you have fear of becoming poor, Allah will soon enrich you with His blessings, if Allah wills…
Wealth is entrusted to individuals, who must use it as prescribed by Allah. On Judgment Day, those who were given wealth will be held accountable for its proper use.
Love of wealth — often, an obsession with wealth leads to selfishness, resulting in social and economic disorder for many. The divide between the wealthy and the impoverished grows, ultimately allowing the rich to dominate while the poor become their subordinates. The Holy Prophet deemed the love of wealth as the most despicable of all human vices. Even today, numerous crimes stem from the pursuit and yearning for wealth.
Allah further reveals:
آمِنُوا بِاللَّهِ وَرَسُولِهِ وَأَنفِقُوا مِمَّا جَعَلَكُم مُّسْتَخْلَفِينَ فِيهِ ۖ فَالَّذِينَ آمَنُوا مِنكُمْ وَأَنفَقُوا لَهُمْ أَجْرٌ كَبِيرٌ 757
Believe in what Allah and His Prophet (
وَاعْلَمُوا أَنَّمَا أَمْوَالُكُمْ وَأَوْلَادُكُمْ فِتْنَةٌ وَأَنَّ اللَّهَ عِندَهُ أَجْرٌ عَظِيمٌ 2858
And be aware that your wealth, your children, is indeed a trial. And certainly, with Allah is great reward.
Clearly, wealth in Islam is not only to live a comfortable life but, through its proper use, to attain the pleasure of Allah.
Trades and Professions — In Islam, all trades, professions, skills, services, and income must be halal (permissible). A Muslim worker or business-person must avoid any haram (prohibited) actions, including lying, deception, concealment of facts or defects, bribery, theft, excessive profit-making, exploiting the vulnerable, gambling, lotteries, and any transactions involving pork, alcohol, illicit drugs, or other harmful products. Earning money through haram activities is akin to filling one’s stomach with Hellfire. 59 In the Islamic economic framework, haram transactions are strictly forbidden for Muslims.
It is essential and advantageous for every Muslim to learn the distinctions between haram and halal, particularly for individuals engaged in trade or business.
- Hoarding is forbidden in Islam. Profiting from artificial shortages of essential goods to increase prices and exploit people’s circumstances is among the gravest sins, leads to Hell, and is entirely prohibited.
- Forward trading and speculative trading represent another form of haram business practices. In this scenario, transactions occur without the physical presence of commodities and outside of traditional marketplaces. Such dealings can be detrimental to both sellers and buyers, as it is impossible to verify the goods being exchanged.
- Smuggling goods constitutes a betrayal that undermines the needs of citizens, leads to product shortages, drives up prices, and diminishes customs duty revenues for the government, which are intended for public benefit.
- Interest is completely forbidden. This prohibition stands as the most significant and distinctive characteristic of the Islamic economy and financial system. In matters of interest, both the payer and the recipient (or book-keeper /witness) engage in conflict with Allah and His Prophet , and they will become inhabitants of Hell. 60 As noted earlier, Allah eliminates interest (earnings) and encourages trade.
The result of riba (usury, interest) is that the wealthy grow wealthier while the less fortunate become poorer. Generating interest does not involve hard work, labor, or effort from the primary lender, the investor, while the borrower, or debtor, faces exploitation. Often, even with diligent effort, debtors struggle to alleviate the burden of interest. SinceAllah is the Lord who grants blessings and prosperity. Ignoring His commands, particularly those concerning riba, yields no blessings, prosperity, happiness, security, contentment, or sustainable stability in society. 61 The Islamic economy is centered on trade rather than interest. For Muslims living in non-Muslim countries, some scholars have allowed limited engagement with riba (interest) in cases of genuine necessity. This allowance is based on the principle of darurah (necessity) when no viable halal alternatives are available. However, this is a matter of scholarly difference, and Muslims are encouraged to seek permissible options from the scholars of their respective country before utilizing this option.
Zakat (mandatory charity), along with various charitable initiatives, acts as a powerful economic driver for Muslim communities. Each year, billions of Muslims contribute Zakat to those in need, aiding in diminishing the concentration of wealth among a select few. This practice encourages wealth distribution, alleviates poverty, and decreases the disparity between the wealthy and the underprivileged. For a more in-depth discussion, check the detailed article on Zakat.
Social welfare — an effective economic system incorporates a social welfare framework that ensures support for the poor and those in need. Inherently, Islam advocates for a social welfare system. Rather than assigning this duty to the government, it is the responsibility of Muslim men to care for their families, children to assist their parents, brothers to aid their sisters, and those who are wealthy to provide for the underprivileged through Zakat and various charitable initiatives. This collective effort promotes economic growth and plays a crucial role in alleviating poverty and suffering.
Moreover, the Prophet’s statement, “Seek knowledge from the cradle to the grave,” serves as a fundamental principle for social well-being that can inspire transformative change. He also remarked, “O Allah! I seek Your protection from such knowledge that brings no benefit to people” 62. An economic crisis arises when expenditures are driven by desires rather than actual needs. By curtailing excessive spending, Islam safeguards against potential economic disasters and promotes meaningful reforms that contribute to a welfare-oriented economy.
Simplicity
It is amazing that a minor concept like simplicity can have as great an impact on an individual’s life and on society as a whole as it has. regrettably, numerous individuals overlook even the smallest significance of this virtue.
In Islam, simplicity is regarded as a virtue that greatly enhances economic prosperity, happiness, and contentment. The worldly life, as described in Islam, serves as a temporary rest stop on our journey to our ultimate destination. Since this world is not our permanent home, we should strive to keep our stay as simple as possible, enabling us to dedicate more time to preparing for the Hereafter. Embracing simplicity simplifies this endeavor.
In Islam, living simply doesn't imply eliminating life's luxuries; rather, it calls for modesty in our actions and a focus on authenticity over superficiality. In fact, embracing simplicity allows us to experience genuine luxury in our lives, freeing us from the endless mental burdens and physical struggles often tied to chasing after luxurious lifestyles. Even when we achieve our goals and acquire the things we desire, these possessions provide only fleeting and superficial fame, respect, pleasure, and enjoyment, all of which diminish with time and ultimately vanish upon our departure from this world.
A simple lifestyle preserves wealth that can be used, for example, for philanthropic purposes that promote genuine happiness and earn true respect and love from society, along with the blessings of the Hereafter. Furthermore, others may emulate these examples, fostering happiness and prosperity throughout society. The enduring satisfaction, good reputation, lasting fame, and unyielding respect that stem from such behavior cannot be achieved through extravagant lifestyles or an abundance of life's luxuries. Such luxuries and extravagant lifestyles are notorious for causing considerable pain and suffering in both private and public life. Islam, through its teachings, alleviates these often hidden pains and sufferings, offering true luxury and liberation.
Miserliness — in Islam, greed and stinginess are prohibited. These behaviors hinder the flow of wealth and resources. The religion encourages spending on personal needs, supporting family, and in the name of Allah, while firmly discouraging wastefulness and excessive spending. Islam teaches Muslims to practice modesty in all aspects of life, including spending. Modesty, akin to simplicity, fosters a positive outlook on economic well-being.
Inheritance — to prevent confusion and conflict, Allah established the principles for fair and just inheritance distribution. The inheritance laws make it clear that Allah intends for wealth not to be concentrated in the hands of a few. Through these laws, Islam emphasizes the significance of wealth distribution to ensure it circulates back into society. A Muslim cannot leave their entire wealth to anyone they choose; only one-third (1/3) may be designated for that purpose, while the remaining two-thirds (2/3) must be allocated to close relatives such as children, parents, spouses, and siblings, as prescribed by Allah .
Conservation — in Islam, conserving natural and essential resources is strongly encouraged. This practice benefits the economy and helps people meet their needs. Wastefulness cannot be justified by abundance. Here are some examples of conservation: even if near a river, one should refrain from wasting water. Food should be the very last thing to be discarded or allowed to spoil. The mercy and blessings of Allah are absent from homes where food, water, and other vital resources are wasted.
Hunting and Cultivation — hunting for sustenance is permissible, but hunting for recreation or sport is prohibited. The animal that is hunted must be consumed; otherwise, its killing is considered sinful. Arable land should be cultivated for farming purposes. Leaving it fallow while others suffer from hunger or poverty means that failing to cultivate it yourself, or not allowing your brother or impoverished neighbors to do so, constitutes a sin and an act of oppression. If one is unable to cultivate the land, they should give it to someone who can. In Islam, providing subsidies to farms to maintain elevated prices or restrict supply is a sin that merits punishment.
Employment and Business — for Muslims, working to support oneself and one’s family constitutes a form of indirect worship. Engaging in practices such as receiving unemployment benefits, public assistance, or begging without a valid reason is often viewed as undignified. Islam permits and actively encourages private ownership of businesses and property, as well as free trade, provided that it adheres to Islamic principles. This framework fosters opportunities for hard work, enables individuals to earn a living, and allows for wealth accumulation that benefits both oneself and others. Islam advocates for private ownership because it greatly contributes to economic growth.
In conclusion, Islam's foundation for an economic system uniquely aims to reduce social classes, minimize and eliminate poverty, decrease unnecessary competition, alleviate physical and mental suffering, and foster genuine happiness and prosperity. Unfortunately, various factors have led to the absence of a comprehensive and practical implementation of the Islamic economic model today. However, numerous small communities, individual Muslim families, and businesses are thriving by adhering to Islamic economic principles. Not long ago, when devout Muslims guided the Muslim ummah (community), the Islamic economic framework accomplished remarkable feats for all, but those prosperous times are now in the past. Ultimately, this world operates on actions; one reaps what one sows. In this context, Allah ensures that no one's efforts go unrewarded; however, according to Islam, eternal rewards are reserved for the righteous.
- 1 Al-Bukhari and Sahih Muslim
- 2 Holy Quran, Al-Hajj, 22: 41
- 3 Holy Quran, Aale-Imran, 3: 110
- 4 Holy Quran, Al-Ma'ida, 5: 2
- 5 Holy Quran, Al-Qasas, 28: 83
- 6 Holy Quran, Ash-Shura, 42: 38
- 7 Holy Quran, Ale-Imran, 3: 159
- 8 Holy Quran, Ash-Shura, 42: 15
- 9 Holy Quran, Al-Baqarah, 2: 107
- 10 Holy Quran, Al-Qasas, 28: 70
- 11 Holy Quran, Al-Anam, 6: 57
- 12 Holy Quran, Aale-Imran, 3: 154
- 13 Holy Quran, Ar-Room, 30: 4
- 14 Holy Quran, Al-Ma'ida, 5: 1
- 15 Holy Quran, At-Tin, 95: 8
- 16 Holy Quran, Aale-Imran, 3: 26
- 17 Holy Quran, Al-Araf, 7: 128
- 18 Holy Quran, Al-Baqarah, 2: 229
- 19 Holy Quran, Al-Ma'ida, 5: 44
- 20 Holy Quran, Al-Ma'ida, 5: 45
- 21 Holy Quran, Al-Ma'ida, 5: 47
- 22 Holy Quran, An-Nisa, 4: 59
- 23 Holy Quran, Ash-Shuara, 26: 151-152
- 24 Holy Quran, An-Nisa, 4: 58
- 25 Holy Quran, Al-Isra, 17: 34
- 26 Holy Quran, At-Tauba, 9: 7
- 27 Holy Quran, At-Tauba, 9: 4
- 28 Holy Quran, Al-Anfal, 8: 58
- 29 Holy Quran, Al-Anfal, 8: 61-62
- 30 Holy Quran, Al-Mumtahana, 60: 8
- 31 Holy Quran, Al-Baqarah, 2: 194
- 32 Holy Quran, An-Nahl, 16: 126
- 33 Al-Bukhari
- 34 Al-Bukhari and Sahih Muslim
- 35 Al-Bukhari and Sahih Muslim
- 36 Al-Bukhari and Sahih Muslim
- 37 Sahih Muslim
- 38 Al-Bukhari and Sahih Muslim
- 39 Al-Bukhari
- 40 Abu Dawud and Sahih Muslim
- 41 Kanz Al-‘Ummal
- 42 Kanz Al-‘Ummal
- 43 Kanz Al-‘Ummal
- 44 Holy Quran, Al-Qasas, 28: 77
- 45 Holy Quran, Al-Araf, 7: 10
- 46 Holy Quran, Al-Jumua, 62: 10
- 47 Holy Quran, Al-Baqarah, 2: 275
- 48 Holy Quran, Al-Baqarah, 2: 275
- 49 Holy Quran, Al-Baqarah, 2: 276
- 50 Holy Quran, Al-Baqarah, 2: 279
- 51 At-Tirmidhi
- 52 Holy Quran, Al-Bukhari
- 53 Abu Dawud and Al-Nasai
- 54 Al-Bukhari
- 55 Kitab Al-Buyu
- 56 Holy Quran, Al-Taubah, 9: 28
- 57 Holy Quran, Al-Hadid, 57: 7
- 58 Holy Quran, Al-Anfal, 8: 28
- 59 Al-Qurtubi
- 60 Holy Quran, Al-Baqarah, 2: 279
- 61 Holy Quran, Ar-Room, 30: 39
- 62 Al-Nasai