The Economic Aspects of the Life of the Prophet ﷺ
حیات نبوی ﷺ کے معاشی پہلو
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The Islamic economic system in the light of the Quran and Sunnah
The Islamic economic system in the light of the Quran and Sunnah
The meaning of "economy" is “the means of living.” When we talk about the Islamic economic system, its simple meaning is: What are the teachings of our Beloved Prophet ﷺ regarding economic matters? At its core, it includes: • Earning through one’s own hard work • Earning through halal means • Adopting contentment and moderation • Practicing balance in spending • Avoiding extravagance (i.e., spending according to need and avoiding wastefulness) • Treating one’s employees with kindness • Showing good manners towards customers • Striving for the financial and economic well-being of the nation and society In this part of the course, we will begin by discussing the foundation of the Islamic economic system, followed by the teachings of the Qur’an and Hadith related to it.
The Islamic Economic System
Islam’s economic system is a welfare-based system built upon justice, fairness, halal earnings, and the equitable distribution of wealth. A key feature of this system is that the circulation of wealth should not remain confined to the rich alone; rather, proper and accessible means should be available for wealth to reach the economically disadvantaged and financially unstable members of society. The Beloved Prophet ﷺ gave the believers such principles of trade, transactions, and employment that not only refine moral character but also protect the economy from decline and loss, and are sufficient to elevate it to the highest levels of prosperity.
The Islamic Economic System and the Holy Qur’an
In the Holy Qur’an, Allah Almighty has explained the principles and laws of the Islamic economic system at numerous places and in various ways. Therefore, a Muslim needs to fulfill both personal financial responsibilities and national economic duties (if holding a position of authority) in accordance with the principles laid down in the Holy Qur’an. Whoever fails to fulfill these responsibilities according to the Holy Qur’an and Hadith will find their financial situation tightened. Allah Almighty says in the Holy Qur’an: وَمَنْ أَعْرَضَ عَنْ ذِكْرِي فَإِنَّ لَهُ مَعِيشَةً ضَنْكًا “And the one who turned his face away from My remembrance; indeed, for him is a life of hardship.” (Surah Taha, Ayah 124, Part 16) Commenting on this verse, Mufti Ahmad Yaar Khan Naeemi علیہ الرحمہ writes in Tafsir Naeemi that such a person's worldly life will be filled with restlessness, worries, and entanglements—whether they live as a rich person possessing millions or as a poor, hungry person. In either case, they will not find peace or tranquility in any condition or state. (Tafsir Naeemi, Volume 16, Page 934) The phrase "معیشۃ ضنکا" has been interpreted by various Tafsir scholars with different meanings. Here, we have shared the interpretation most relevant to our topic, based on Tafsir Naeemi. It clearly shows that whoever does not live their life according to the principles laid down by Allah and His Messenger ﷺ will suffer from unease and distress—regardless of whether they are rich or poor. Therefore, to protect oneself from financial hardship, it is essential to live according to the lifestyle prescribed by Allah and His Messenger ﷺ. Only then can one achieve peace and tranquility in this life, in religion, and the Hereafter.
Principles of Economic Life in the Light of the Qur’an – Principle 1: Continuous and Fair Distribution of Wealth
In the Islamic economic system, a key policy is to uplift the underprivileged segments of society and ensure their needs are taken care of. During the pre-Islamic era (Jāhiliyyah), it was customary that when spoils of war were acquired, the chief took a quarter of them, and the rest was distributed among the people. However, even then, the wealthy would take the lion’s share, leaving only a small portion for the poor. Islam abolished this unfair system and established a just method of distribution. Allah Almighty outlined the principles for distributing the spoils of war in the Holy Qur’an and also explained the reason behind it. He says: مَاۤ اَفَآءَ اللّٰهُ عَلٰى رَسُوْلِهٖ مِنْ اَهْلِ الْقُرٰى فَلِلّٰهِ وَ لِلرَّسُوْلِ وَ لِذِی الْقُرْبٰى وَ الْیَتٰمٰى وَ الْمَسٰكِیْنِ وَ ابْنِ السَّبِیْلِۙ- كَیْ لَا یَكُوْنَ دُوْلَةًۢ بَیْنَ الْاَغْنِیَآءِ مِنْكُم “The spoils of war which Allah caused to be given to His Messenger from the people of a town, it is for Allah and His Messenger, and the relatives, and the orphans, and the needy, and the travelers, in order that it may not (merely) become the wealth of the rich amongst you.” (Surah Al-Ḥashr, Ayah 7, Part 28) A 2016 social media post stated that an analysis from 1987 or 1988 to the present shows that the incomes of 20% of the wealthy increased by 12%, while the incomes of 20% of the poor decreased by 21%. Due to this unequal distribution of wealth, the wealth is not trickling down to the lower class. This growing disparity leads to a rising sense of deprivation among the poor, pushing them toward extremism and criminal behavior. (Source: Social Media) This statement shows that an economic principle prescribed in the Holy Qur’an 1,400 years ago is not being followed today — and as a result, it is causing serious harm: • Some end their lives under the burden of poverty • Others fall into depression and surrender themselves to illness • Greed for wealth turns brother against brother and children against parents • Some, driven by desperation, turn to crime and ruin their lives Therefore, if we truly want to eliminate crime and pull people out of hopelessness, wealth must not remain concentrated in a few hands. Instead, it must be equitably distributed, ensuring that people receive their rightful share. Only then can the economy flourish and achieve meaningful growth.
Principle 2: Observing the Boundaries of Halal and Haram
Islam does not stop Muslims from earning wealth. In fact, it grants them the freedom to earn and engage in trade. However, this freedom is not without boundaries—it is not a license to ignore the difference between right and wrong, or halal and haram. A Muslim is required to conduct all trade and financial dealings while remaining within the limits of halal and haram. Allah Almighty says: یٰۤاَیُّهَا الَّذِیْنَ اٰمَنُوْا لَا تُحَرِّمُوْا طَیِّبٰتِ مَاۤ اَحَلَّ اللّٰهُ لَكُمْ وَ لَا تَعْتَدُوْاؕ-اِنَّ اللّٰهَ لَا یُحِبُّ الْمُعْتَدِیْنَ(87)وَ كُلُوْا مِمَّا رَزَقَكُمُ اللّٰهُ حَلٰلًا طَیِّبًا “O believers! Do not make unlawful such pure things which Allah has made lawful for you, and do not exceed the limit; indeed, Allah dislikes those who exceed the limit. And eat whatever sustenance which Allah has given you; lawful, (and) pure.” (Surah al-Mā’idah, Ayahs 87–88, Part 7) At another place, Allah Almighty says: وَ مَا لَكُمْ اَلَّا تَاْكُلُوْا مِمَّا ذُكِرَ اسْمُ اللّٰهِ عَلَیْهِ وَ قَدْ فَصَّلَ لَكُمْ مَّا حَرَّمَ عَلَیْكُمْ اِلَّا مَا اضْطُرِرْتُمْ اِلَیْهِؕ-وَ اِنَّ كَثِیْرًا لَّیُضِلُّوْنَ بِاَهْوَآىٕهِمْ بِغَیْرِ عِلْمٍؕ-اِنَّ رَبَّكَ هُوَ اَعْلَمُ بِالْمُعْتَدِیْنَ “And what has happened to you; that you should not eat from that upon which the Name of Allah has been mentioned (at the time of slaughtering)? He has already explained in detail to you whatever has been made unlawful to you except when you are compelled towards it. And verily, many mislead (other people) by their own desires; out of ignorance. Indeed, your Lord knows well the transgressers.” (Surah al-Anʿām, Ayah 119, Part 8) Reflecting on these two verses, it becomes clear that declaring something haram that Allah Almighty has made halal is a form of transgression, because Allah Almighty has already clearly outlined what is forbidden. Whoever oversteps these bounds—declaring the halal to be haram or the haram to be halal—is known to Allah Almighty. Such people, driven by their desires, have not only gone astray themselves but also mislead others as a result.
Principle 3: Avoiding Extravagance and Miserliness
Spending where one should not spend is called extravagance, and not spending where one should spend is miserliness. Islam strongly emphasizes that the righteous servants of Allah neither spend wastefully nor act with miserliness. Instead, they spend where there is genuine need and refrain from spending where there is none. It is this balance and moderation that brings peace and harmony to their personal financial lives. Allah Almighty says in the Holy Qur’an: وَ الَّذِیْنَ اِذَاۤ اَنْفَقُوْا لَمْ یُسْرِفُوْا وَ لَمْ یَقْتُرُوْا وَ كَانَ بَیْنَ ذٰلِكَ قَوَامًا “And those who, when they spend, neither exceed the limits nor act miserly, and stay in moderation between the two.” (Surah Al-Furqan, Ayah 67, Part 19)
Principle 4: Avoiding Wasteful Spending
The Islamic economic system condemns wasteful spending. Any individual or nation that develops a habit of extravagance will eventually lose access to the resources and means of economic stability. In the Holy Qur’an, Allah Almighty describes those who are wasteful as the brothers of Satan. He says: وَ لَا تُبَذِّرْ تَبْذِیْرًا(26)اِنَّ الْمُبَذِّرِیْنَ كَانُوْۤا اِخْوَانَ الشَّیٰطِیْنِؕ-وَ كَانَ الشَّیْطٰنُ لِرَبِّهٖ كَفُوْرًا “And do not spend wastefully. Those who spend wastefully are indeed the brothers of the devils, and the Devil is extremely ungrateful to his Lord.” (Surah Banī Isrā’īl, Ayahs 26–27, Part 15) According to Tafsīr Madarik, this verse means that wasteful people are considered the brothers of devils because they follow in their footsteps. And since Satan is extremely ungrateful to his Lord, one should avoid following his path.
Fifth Principle: Documentation of Agreements Between the Two Parties
One of the beauties of the Islamic economic system is that it takes preventive measures against any method or approach that might lead to disputes and discord between two individuals. A prime example of this is financial transactions involving loans. Allah Almighty states: یٰۤاَیُّهَا الَّذِیْنَ اٰمَنُوْۤا اِذَا تَدَایَنْتُمْ بِدَیْنٍ اِلٰۤى اَجَلٍ مُّسَمًّى فَاكْتُبُوْهُؕ-وَ لْیَكْتُبْ بَّیْنَكُمْ كَاتِبٌۢ بِالْعَدْلِ۪-وَ لَا یَاْبَ كَاتِبٌ اَنْ یَّكْتُبَ كَمَا عَلَّمَهُ اللّٰهُ فَلْیَكْتُبْۚ-وَ لْیُمْلِلِ الَّذِیْ عَلَیْهِ الْحَقُّ وَ لْیَتَّقِ اللّٰهَ رَبَّهٗ وَ لَا یَبْخَسْ مِنْهُ شَیْــٴًـاؕ-فَاِنْ كَانَ الَّذِیْ عَلَیْهِ الْحَقُّ سَفِیْهًا اَوْ ضَعِیْفًا اَوْ لَا یَسْتَطِیْعُ اَنْ یُّمِلَّ هُوَ فَلْیُمْلِلْ وَلِیُّهٗ بِالْعَدْل “O believers! If you make an agreement of debt for a specified period, so write it down. And a scribe should accurately write (the agreement) between you accurately, and the scribe should refuse to write in the manner that Allah has taught him, he should therefore write (it). And the liable person (i.e. the debtor) should dictate to him and should fear Allah Who is his Lord, and not omit anything concerning the rights (of those involved); if the debtor is then of low understanding, or incapable, or unable to dictate by himself, his guardian should therefore dictate with justice.” — Surah Al-Baqarah (2:282) Now read this verse again carefully. There is a lender and a borrower, and Allah Almighty commands both to have the loan written down. If they themselves cannot write, then they should have someone else write it for them. Why such emphasis? In the continuation of this same verse, Allah Almighty also commands the appointment of witnesses. What is the reason behind this? Regarding this command, Tafsir Sirat al-Jinan explains: “Whenever there is a deferred transaction, whether it is a loan or a sale—whether money is given first and goods received later, or goods are given on credit and payment is to be made later, or even in cases like renting a shop or house with advance payment—such agreements should be documented. Though this command is not obligatory (wajib), acting upon it can save one from many difficulties. In our times, this command has become extremely important because people often withhold others’ money, renege on agreements, and—due to lack of written evidence—deny any responsibility. Therefore, whoever wants to protect themselves should act upon this instruction; otherwise, regret will be the only outcome. That’s why the verse further states: ‘Do not feel it a burden (to write it), whether the debt is small or big; write it down along with its fixed period.’” Sometimes, when transactions occur due to family ties or friendships—like giving loans or any form of financial dealing—people hesitate to document it, fearing it may harm relationships. But the Holy Qur’an clearly instructs that such hesitation should not exist; rather, the command of the Holy Qur’an must be upheld. Today, it is commonly observed that in many disputes—particularly those concerning financial transactions—there is neither any written documentation nor any witnesses present. As a result, either the lender suffers a loss, or the borrower ends up facing harm. Not following this divine instruction leads to not only economic damage, but also social consequences—such as killings, hatred, grudges, and enmities.
Sixth Principle: Fairness in Weighing and Measuring
One of the key principles of the Islamic economic system is to ensure fairness in weighing and measuring. Allah Almighty commands: وَ اَوْفُوا الْكَیْلَ وَ الْمِیْزَانَ بِالْقِسْط “And measure and weigh in full, with justice.” (Surah Al-An‘am, 6:152 | Para 8) Among the nations of the past was the nation of Sayyiduna Shu‘ayb علیہ الصلوۃ والسلام. One of the reasons for the divine punishment that befell them was their habitual dishonesty in weights and measures. Allah Almighty has mentioned their story multiple times in the Holy Qur’an. He says: وَ اِلٰى مَدْیَنَ اَخَاهُمْ شُعَیْبًاؕ-قَالَ یٰقَوْمِ اعْبُدُوا اللّٰهَ مَا لَكُمْ مِّنْ اِلٰهٍ غَیْرُهٗؕ-قَدْ جَآءَتْكُمْ بَیِّنَةٌ مِّنْ رَّبِّكُمْ فَاَوْفُوا الْكَیْلَ وَ الْمِیْزَانَ وَ لَا تَبْخَسُوا النَّاسَ اَشْیَآءَهُمْ وَ لَا تُفْسِدُوْا فِی الْاَرْضِ بَعْدَ اِصْلَاحِهَاؕ-ذٰلِكُمْ خَیْرٌ لَّكُمْ اِنْ كُنْتُمْ مُّؤْمِنِیْن “And to Madyan, We sent Shu‘ayb from their community. He said, ‘O my people! Worship Allah; you do not have any god except Him. Indeed, a clear proof has come to you from your Lord; measure and weigh therefore in full, and do not short-change people and do not spread turmoil on the earth after it has been put in order; this is for your own good, if you believe.’” (Surah Al-A‘raf, 7:85 | Para 8)
Seventh Principle: Wrongful Acquisition of Wealth
Wrongfully acquiring another’s wealth—whether through usurpation, bribery, or unjust possession—is regarded as a crime not only from the perspective of Shariah, law, and morality, but also for its profoundly harmful impact on the economy. For this reason, Allah Almighty has forbidden it in the Holy Qur’an. He states: وَ لَا تَاْكُلُوْۤا اَمْوَالَكُمْ بَیْنَكُمْ بِالْبَاطِلِ وَ تُدْلُوْا بِهَاۤ اِلَى الْحُكَّامِ لِتَاْكُلُوْا فَرِیْقًا مِّنْ اَمْوَالِ النَّاسِ بِالْاِثْمِ وَ اَنْتُمْ تَعْلَمُوْن “And do not unfairly consume the wealth of each other, nor take their cases to rulers, in order that you may wrongfully consume a part of other people’s wealth knowingly.” (Surah Al-Baqarah, 2:188 | Para 2) Wrongfully taking over someone’s wealth disrupts the peace and harmony of society and inflicts financial harm upon the poor and vulnerable. Today, we see a sharp rise in legal disputes where the oppressed and needy fall prey to people who have completely lost their sense of humanity, kindness, and concern for others. They act purely out of self-interest, and as a result, the weaker party ends up losing their battle. To protect society from this kind of social and economic damage, the Holy Qur’an has laid down this principle within the Islamic economic system: If we seek economic growth and social harmony, then we must refrain from the vile and disgraceful act of unjustly acquiring the wealth of others.
Eighth Principle: Seeking Livelihood Is a Blessing from Allah
It is a fact that the Provider of sustenance is Allah Almighty. Allah Almighty says in the Holy Qur’an: وَ مَا مِنْ دَآبَّةٍ فِی الْاَرْضِ اِلَّا عَلَى اللّٰهِ رِزْقُهَا “And there is no one that walks upon the earth whose sustenance is not upon the responsibility of Allah’s Generosity.” (Surah Hud, 11:6 | Para 12) However, this does not mean that one should remain idle and refrain from striving for a halal livelihood. Allah Almighty has described the pursuit of halal sustenance as His grace (fadl) and has commanded us to seek it. Allah Almighty says: فَإِذَا قُضِيَتِ الصَّلَاةُ فَانْتَشِرُوا فِي الْأَرْضِ وَابْتَغُوا مِنْ فَضْلِ اللَّهِ وَاذْكُرُوا اللَّهَ كَثِيرًا لَعَلَّكُمْ تُفْلِحُونَ “That when Salah is completed, so disperse in the land and seek Allah’s benevolence (i.e. lawful sustenance), and abundantly remember Allah in the hope of attaining success.” (Surah Al-Jumu‘ah, 62:10 | Para 28) Abu Al-Layth Nasr bin Muhammad bin Ahmad Samarqandi علیہ الرحمہ, in his tafsir, comments on the phrase وَابْتَغُوا مِنْ فَضْلِ اللَّهِ: اطلبوا الرزق من الله تعالى بالتجارة والكسب “That is, seek sustenance from Allah through trade and earning.” (Tafsir As-Samarqandi) This means that one should strive to earn a halal livelihood through business and hard work.
Principles of the Islamic Economic System in Light of Hadith - First Principle: Encouragement to Earn Halal Livelihood
The Beloved Prophet ﷺ laid down the most important principle for the soundness of the Islamic economic system: that a believer is required to strive for halal earnings. If we reflect on this principle, we find it to be incredibly comprehensive and far-reaching. When a Muslim focuses on earning halal income, they naturally avoid many harmful behaviors: They stay away from lying, from breaking promises, from deceiving others. They do their work with dedication and sincerity. If any shortcoming occurs, they strive to rectify it immediately. This emphasis on halal income protects a person from numerous actions that harm the economy and draws them toward behaviors that benefit it. The Beloved Prophet ﷺ said: طَلَبُ الحَلالِ وَاجِبٌ عَلَى كُلِّ مُسلِمٍ "Seeking halal livelihood is obligatory upon every Muslim." (Reported by al-Ṭabarānī in al-Awsaṭ, Hadith: 8615)
Second Principle: Honesty and Trustworthiness in Trade
The opposite of honesty and trustworthiness is lying and betrayal. Every sensible person understands that when lying and betrayal enter any relationship—no matter how strong—it begins to break down. Ties are severed. Similarly, the economy also suffers greatly from these traits. That is why the Noble Prophet ﷺ encouraged traders to adopt truthfulness and trustworthiness. He said: قال رسول الله صلی اللہ علیہ وسلم *التَّاجِرُ الصَّدُوقُ الأَمِينُ مَعَ النَّبِيِّينَ وَالصِّدِّيقِينَ وَالشُّهَدَاءِ "The honest and trustworthy trader will be with the Prophets, the truthful, and the martyrs." (Sunan al-Tirmidhi, Hadith 1209)
Third Principle: Prohibition of Deception
In the Islamic economic system, Muslims are strongly warned against deception. The Noble Prophet ﷺ expressed severe displeasure toward such individuals, saying: مَن غَشَّ فَلَيْسَ مِنِّي "Whoever deceives is not one of us." (Sahih Muslim, Hadith 102) Deception has a deeply negative impact on the economy because it weakens the very foundation of the economic structure. When deception occurs, it creates an atmosphere of distrust between consumers and investors. This lack of trust damages economic relationships and slows down the pace of economic growth. Therefore, every Muslim, as a follower of the Beloved Prophet ﷺ, should consistently act upon this principle that he taught.
Fourth Principle: Condemnation of Interest and Its Prohibition
One of the major reasons for the economic damage being witnessed worldwide today is the widespread prevalence of interest (riba). The current global economic system is built on interest-based finance, whether at the international, national, or private level. Interest is deeply embedded in financial dealings. Islamic Scholars have consistently spoken—and will continue to speak—about the prohibition, danger, and severity of interest. But this is not based on their personal opinions, nor have they independently declared it haram. Rather, the prohibition of interest is clearly stated in the Holy Qur’an, not just in one or two verses, but in multiple places. Likewise, its condemnation is found in not just a few hadiths, but dozens of them. Now, if someone is addicted to riba or believes that the world cannot function without it, they are free to think whatever they like. But as Muslims, it is obligatory to avoid interest, regardless of personal views. The prohibition of riba is not subject to personal convenience or interpretation. If anyone finds this command difficult—or extremely difficult—then they should remember that it is not the scholars who have declared riba haram, but Allah Almighty Himself, and it has been repeatedly condemned by the Beloved Prophet ﷺ. This ruling is not based on the scholars' personal desire or innovation. Therefore—whether someone is poor or wealthy, a street vendor or a businessman, a bank executive or the owner of a major insurance company—everyone must believe in the prohibition of riba and avoid it under all circumstances. Allah Almighty states in the Holy Qur’an: اَحَلَّ اللّٰهُ الْبَیْعَ وَ حَرَّمَ الرِّبٰوا “And Allah has made trading lawful and has made usury unlawful.” (Surah Al-Baqarah, 2:275 | Para 3) Likewise, the Noble Prophet ﷺ said: لَعَنَ اللَّهُ آكِلَ الرِّبَا وَمُوكِلَهُ وَشَاهِدَيْهِ وَكَاتِبَهُ “Allah has cursed the one who consumes interest, the one who gives it, the one who records it, and the two who witness it.” (Sahih Muslim, Hadith 1598)
Fifth Principle: Prohibition of Hoarding
There is no harm in adopting permissible means for business and economic growth. However, the Islamic economic system prohibits methods that lead to social damage, disrupt economic development, increase greed and selfishness, or cause hardship for the people. Shayṭan is a clear enemy of mankind. He has led some Muslims to become greedy and self-serving. Among the harmful practices he has led people into—practices that harm the economy—is hoarding, which, unfortunately, some Muslims also commit, despite it being clearly impermissible and haram. Hoarding refers to the act of purchasing grain during times of inflation and refraining from selling it—not due to need or trade cycles—but intentionally holding it back so that when people are desperate, it can be sold at a much higher price. However, if one purchases grain during harvest season and stores it, then sells it after some days when the price increases naturally, this is not considered ihtikar (prohibited hoarding), nor is it forbidden. (Bahar-e-Shari‘at, Vol. 2, p. 725) Ṣadr al-Shari‘ah Mufti Amjad Ali A‘zami علیہ رحمۃ writes: Ihtikar (i.e., hoarding) does not apply to items other than grain. (Bahār-e-Sharī‘at, Vol. 2, p. 725) The Noble Prophet ﷺ forbade this harmful practice—one that harms the economy—centuries ago. The Beloved Prophet ﷺ said: لا يَحْتَكِرُ إلا خَاطِئٌ Translation: No one hoards except a sinner. (Sahih Muslim, Hadīth 1605)
Sixth Principle: Fairness in Weight and Measure
Cheating in weights and measures, and reducing the rightful quantity of goods, is not a new practice. In fact, there was a nation among the previous communities upon whom divine punishment descended due to this very sin. The economic system that Allah Almighty has granted us through His Beloved Prophet ﷺ is perfect and complete according to its principles. However, it is also true that—unfortunately—tampering with weights and measures has increased more rapidly in our times than ever before. Countless deceptive methods are now used in marketplaces, many of which were previously unheard of. As Muslims, it is our religious obligation to obey the commands of Allah and His Messenger ﷺ, and indeed, our success in both this world and the Hereafter lies in doing so. Allah Almighty has repeatedly commanded fairness in weight and measure throughout the Qur’an. In Surah al-Rahmān, He states: وَالسَّمَآءَ رَفَعَهَا وَوَضَعَ الْمِیْزَانَۙ(۷) اَلَّا تَطْغَوْا فِی الْمِیْزَانِ(۸) وَاَقِیْمُوا الْوَزْنَ بِالْقِسْطِ وَ لَا تُخْسِرُوا الْمِیْزَا "And Allah has raised the sky and set the scale. That you should not transgress in the scale (when you are weighing). And establish the weight with justice, and do not reduce the weight." (Surah al-Rahman, verses 7–9, Juz 27) The Beloved Prophet ﷺ said: إِذَا وَزَنْتُمْ فَأَرْجِحُوا “When you measure, give a little extra.” (Sunan Ibn Majah, Hadith 2222)
Seventh Principle: Granting Relief to Debtors and Emphasizing Timely Repayment
One of the beautiful features of the Islamic economic system is that when a transaction takes place between two individuals, Islam outlines the responsibilities of each party separately, thereby preventing all forms of social and economic instability. When it comes to loans, the Holy Qur'an commands both the lender and the borrower to document the agreement and to appoint witnesses. Islamic teachings provide guidance to both parties regarding loan repayment. The lender is instructed to make the demand courteously and gracefully. If the borrower is genuinely unable to repay the debt, the lender is advised to grant extra time or even forgive the loan entirely. If a person does so, Allah Almighty will grant him the shade of His Throne on the Day of Judgment. The Beloved Prophet ﷺ said: مَن أَنْظَرَ مُعْسِرًا أَو وَضَعَ لَهُ، أَظَلَّهُ اللَّهُ يَوْمَ القِيَامَةِ فِي ظِلِّهِ "Whoever grants respite to a debtor in difficulty or forgives the debt, Allah will shade him on the Day of Judgment under His shade." (Sahih Muslim, 3006) This method of teaching is remarkable — it not only conveys guidance, but also clarifies the benefit alongside it. The economic benefit is that the borrower gets additional time to arrange the repayment. With that extra time, he can increase his efforts and repay the loan sooner. And if the lender forgives part or all of the debt, it directly eases the borrower’s financial burden. As for the lender, what greater reward could there be than being granted the shade of Allah’s Throne on the Day of Judgment? On the other hand, the borrower is also advised not to delay repayment without a valid reason. If someone deliberately procrastinates despite having the means to repay, such behavior is declared unjust in ḥadīth. The Prophet of Mercy ﷺ said: "The delay of a wealthy person in repaying a debt is injustice." (Ṣaḥīḥ al-Bukhārī, Ḥadīth 2400) Commenting on this, Mufti Shareef al-Haqq Amjadi علیہ رحمۃ, a commentator of Bukhari, states: “It is not permissible for a wealthy person to make excuses when the repayment term has come due. Only someone genuinely poor is considered excused.” (Nuzhat al-Qārī, 3/578) Unfortunately, in today's society, we find improper and irresponsible behavior when it comes to repaying debts—just as we do in many other matters. Honor and integrity demand that one should visit their benefactor and return the loan with gratitude. But today, the situation is often the opposite. Many people borrow money by assuring timely repayment, but when it's time to return the loan—even though they have the means—they avoid the lender, make excuses, and deliberately put them in distress. Such behavior undermines the economic system, because it destroys trust between people. As a result, genuine borrowers find it difficult to get help in times of need. This leads to increasing economic instability, poverty, and even criminal behavior. If society were to truly follow the principles of the Islamic economic system, everyone would benefit.
Eighth Principle: Adherence to the Rules of Inheritance
Inheritance refers to the distribution of a deceased person’s property among their rightful heirs according to the principles and laws prescribed by Islamic Shariah. Islam has provided a strong and comprehensive system for the distribution of inheritance. If followed, it can eliminate the social and economic problems that often arise in such matters. When property and wealth are distributed among heirs according to the rulings of Shariah, it leads to a climate of peace and harmony. Social discord is reduced, and each individual attains economic stability and contentment. Allah Almighty has mentioned, in detail, the rightful heirs and their shares in the Qur’an. For this reason, the Noble Prophet ﷺ laid down this foundational principle in concise words: إِنَّ اللَّهَ قَدْ أَعْطَى كُلَّ ذِي حَقٍّ حَقَّهُ "Indeed, Allah has given each rightful person their due." (Sunan Ibn Mājah, Ḥadīth 2712) Adhering to this principle and law is obligatory upon every Muslim.
Ninth Principle: Supporting the Needy Through the Zakah System
In the Islamic economic system, Zakah holds a position of central importance. During his blessed lifetime, the Noble Prophet ﷺ established a well-organized system for the collection and distribution of Zakah, and the Rightly Guided Caliphs continued to follow this same framework after him. In an Islamic economy, Zakah is among the core responsibilities of the state—so that those who have fallen behind in the economic race can be supported, lifted out of financial crisis, and enabled to live a dignified and peaceful life. The Noble Prophet ﷺ sent Muʿadh ibn Jabal to the people of Yemen and instructed him: “When you reach the people of Yemen, first call them to Islam. If they accept Islam, then instruct them to establish prayer. If they accept that as well, then inform them that: أَنَّ اللَّهَ قَدْ فَرَضَ عَلَيْهِمْ صَدَقَةً، تُؤْخَذُ مِنْ أَغْنِيَائِهِمْ فَتُرَدُّ فِي فُقَرَائِهِمْ، ‘Allah has made Zakah obligatory upon them—it is to be taken from their wealthy and given to their poor.’” (Ṣaḥīḥ al-Bukhārī, Ḥadīth 1496) This ḥadīth clearly shows that the objective of the Islamic economic system is to empower those who are financially weak by placing their right within the wealth of the rich. The wealthy are thus obligated to help them through their own wealth. Through this system of Zakāh, Islam seeks to narrow the social and economic gap, promote financial equality, and eliminate poverty and destitution—ultimately contributing to the economic development of society as a whole.
Tenth Principle: Avoidance of Extravagance
Another vital principle that strengthens the Islamic economic system is that believers are commanded to avoid wasteful spending and adopt moderation in their expenditures. Practicing balance in spending is extremely important—especially in our times, where inflation is at its peak and income levels often fall short of rising expenses. The Beloved Prophet ﷺ emphasized moderation in spending with the following words: الِاقْتِصَادُ فِي النَّفَقَةِ نِصْفُ الْمَعِيشَةِ “Moderation in expenditure is half of one’s livelihood.” (Narrated by ʿAbdullāh ibn ʿUmar — al-Muʿjam al-Kabīr, also referenced in Sunan collections) Mufti Ahmad Yar Khan Naʿimi رحمه الله comments on this ḥadīth: SubhanAllah! What a remarkable statement. Prosperity depends on two things: earning and spending. But among the two, proper spending is the real skill. Everyone knows how to earn, but few know how to spend. The one who learns the art of spending will, inshāʾAllāh, always live in ease. Whether one is wealthy or poor, everyone needs money to fulfill their needs and desires. People generally spend according to their financial capacity. Just as Islam has provided guidance on how to earn wealth, it has also given us etiquettes and limits regarding how to spend it, emphasizing moderation. Spending moderately is highly encouraged in Islam, whereas extravagance and stinginess are both condemned as negative traits that do not befit a true believer. The Qur’an describes the quality of true believers as: “And those who, when they spend, neither exceed the limits nor act miserly, and stay in moderation between the two.” (Sūrah al-Furqān, 25:67) Thus, when spending wealth: • One should not be so extravagant that nothing remains for basic needs, forcing one to beg from others later. • Nor should one be so miserly that even in situations where spending is religiously or socially necessary, one refrains from doing so. Instead, spend wisely and proportionately—giving only as much as is appropriate for the occasion. The Holy Prophet ﷺ also said: من اقتصد أغناه الله، ومن بذر أفقره الله، “Whoever maintains moderation, Allah will enrich him; and whoever is extravagant, Allah will impoverish him.” (Kanz al-ʿUmmāl, Ḥadīth 5437)
The economic life of the Holy Prophet ﷺ before the declaration of prophethood
The economic life of the Holy Prophet ﷺ before the declaration of prophethood
The Beloved Prophet ﷺ proclaimed his Prophethood at the age of forty. What were the financial affairs of the Noble Prophet’s ﷺ blessed life like before that? In this section, we will explore that phase. This part of the Seerah of the Holy Prophet ﷺ serves as a powerful source of guidance—especially for those who may be financially struggling or who fall into despair due to poverty and hardship. Likewise, it contains valuable lessons and guidance for those engaged in trade and business.
Due to Apparent Poverty, No One Nursed Him Except Sayyidatuna Halimah رَضِيَ ٱللَّٰهُ عَنْهَا
Even before the blessed birth of the Beloved Prophet ﷺ, his noble father had already passed away. And outwardly, his mother’s financial condition was also not favorable. It was customary among the nobles of Makkah that instead of keeping their children with their mothers, they would send them to tribes living in rural areas to spend their childhood, so they would grow up speaking pure and eloquent Arabic. Sayyidatuna Aminah رَضِيَ ٱللَّٰهُ عَنْهَا also desired the same for her son. When several women from the tribe of Bani Saʿd bin Abi Bakr came to Makkah to nurse children, among them was Sayyidatuna Halimah Saʿdiyyah رَضِيَ ٱللَّٰهُ عَنْهَا. Sayyidatuna Halimah رَضِيَ ٱللَّٰهُ عَنْهَا herself narrated that every wet nurse who came with me had the honor of being offered the Beloved Prophet ﷺ, but when they found out his father was no longer in this world, they thought, 'What benefit will we get?' So none of them accepted him. All the other women who came with me had found a child to nurse, but I had not. So I said to my husband, Harith, 'I do not wish to return home empty-handed. I will take that orphaned child.' He replied, 'That would be a good idea. Perhaps this child will bring blessings for us.' And so, I took the Beloved Prophet ﷺ into my care." (Al-Bidāyah wan-Nihāyah, p. 273) Reflection: Here we catch a glimpse of the financial condition of the Beloved Prophet’s ﷺ early life — he was born without a father, and into a household of modest means. Though a short incident, it holds powerful lessons. Sayyidatuna Aminah رَضِيَ ٱللَّٰهُ عَنْهَا sent her son to the rural areas so he could learn eloquence — a decision that shows mothers must be open-hearted and willing to make sacrifices (within the bounds of Islamic teachings) to help shape their children into well-mannered and upright individuals. We also witness the sincerity and selflessness of Sayyidatuna Halimah Saʿdiyyah رَضِيَ ٱللَّٰهُ عَنْهَا. Unlike others who declined the Beloved Prophet ﷺ due to his orphaned state and lack of material gain, she accepted him without any worldly expectations, and little did the others know, they had missed out on a once-in-history honor that was destined solely for Sayyidatuna Halimah رَضِيَ ٱللَّٰهُ عَنْهَا.
The Passing of His Noble Mother and the Period of Care Under His Grandfather
When the Beloved Prophet ﷺ reached the age of six, his noble mother passed away. After that, his grandfather took charge of his financial care. However, he too passed away two years later.
Under the Care of Abu Talib and Zubair After His Grandfather’s Passing
After the passing of his own father, Abu Talib took on the responsibility of caring for his nephew, the Noble Prophet ﷺ. However, Abu Talib himself had a large family—he had ten sons—and was financially weak. As a result, he too faced economic difficulties. Despite this, he loved the Noble Prophet ﷺ dearly as his nephew and considered him even more beloved than his own children.
The Holy Prophet ﷺ Herding Goats
When the Noble Prophet ﷺ reached the age of 12, he used to herd the goats of the people of Makkah in return for a wage. At that time, herding goats was considered a respected profession in Arabia. Even the children of prominent tribal leaders and nobles would tend to goats. In Sahih al-Bukhari, in the Kitab al-Ijarah, there is a narration: عَنْ أَبِي هُرَيْرَةَ عَنِ النَّبِيِّ ﷺ قَالَ: *مَا بَعَثَ اللّٰهُ نَبِيًّا إِلَّا رَعَى الْغَنَمَ» . فَقَالَ أَصْحَابُهٗ : وَأَنْتَ؟ فَقَالَ:«نَعَمْ كُنْتُ أَرْعٰى عَلٰى قَرَارِيطَ لِأَهْلِ مَكَّةَ Narrated by Abu Hurairah رضي الله عنه: The Beloved Prophet ﷺ said, “Allah did not send any prophet except that he herded sheep.” The companions asked, “Even you, O Messenger of Allah ﷺ?” He ﷺ replied, “Yes, I used to herd goats for a few qirats for the people of Makkah.” (Sahih al-Bukhari, Kitab al-Ijarah) Mufti Ahmad Yar Khan Naeemi رحمه الله, in the explanation of this Hadith, writes: A qirat is either one-twentieth or one-twenty-fourth of a dinar. The Noble Prophet ﷺ herded the goats of the people of Makkah for one qirat, either daily or monthly. (Mirat al-Manajih, Volume 4, Hadith 2983) Some individuals have interpreted the word qirats to mean a location, as they find it inappropriate to associate the Beloved Prophet ﷺ with herding goats for wages. However, this view is incorrect because at that time, this profession was considered honorable in Arab society. Furthermore, the fact that the Beloved Prophet ﷺ chose to engage in a profession at the age of 12 reflects his nobility and greatness—perhaps he did so to help ease the financial hardship of his uncle, Abu Talib. From this act of the Beloved Prophet ﷺ, we are encouraged to work hard and also learn the value of dignity and self-respect. His tending of goats to support himself was not something undignified; rather, it serves as a profound source of encouragement and guidance for us. We learn that one should strive to earn through their own effort. It is important to remember that loving wealth is one thing, but earning wealth out of necessity is not wrong; rather, it is something encouraged by the Shari'ah.
The Youth and Economic Life of the Beloved Prophet ﷺ
In his youth, the Noble Prophet ﷺ adopted the profession of trade. One reason for this was that the tribe of Quraysh was deeply connected to trade and well known for it. So, it would not be wrong to say that trade was the way of the Beloved Prophet’s ﷺ forefathers. Initially, the Beloved Prophet ﷺ accompanied his uncle Abu Talib on a few trade journeys, and through these travels, he gained valuable experience in commercial dealings. Everyone became impressed by his way of conducting trade because truthfulness, trustworthiness, and complete transparency in dealings were distinctive qualities of the Beloved Prophet ﷺ. It is a fact that for economic progress, it is essential to keep one’s business dealings honest and transparent—avoiding deceit and falsehood—otherwise, a person may face financial decline and instability. The Holy Prophet’s ﷺ approach to trade was exemplary. One of the companions, Sayyiduna Abdullah bin Sa’ib رضي الله عنه, accepted Islam and later came to visit the Holy Prophet ﷺ. As he entered the gathering, the other Companions began praising the qualities of the Beloved Prophet ﷺ in front of him. Upon hearing this, Abdullah bin Sa’ib رضي الله عنه said: “I know the Beloved Prophet ﷺ better than all of you. He is my business partner, and he always kept his dealings completely clear and honest.” (Sunan Abi Dawood) In another narration, it is mentioned that when Sayyiduna Abdullah bin al-Sa’ib رضي الله عنه came to the Beloved Prophet ﷺ, the Beloved Prophet ﷺ himself asked him: “Do you recognize me?” He replied, “Why wouldn’t I! You are my best trade partner. You never evaded any matter, nor did you argue over anything.” This is a crucial lesson for every trader, because such conduct is the foundation for financial success. If a person's approach to business involves arguing, disputes, or manipulation, they will lag far behind in terms of economic prosperity.
The Holy Prophet’s ﷺ Participation in Hilf al-Fudul
Before the advent of Islam, the Arabs were frequently engaged in wars. Due to constant fighting, hundreds of families across Arabia were destroyed. The constant unrest and frequent incidents of looting had destroyed the peace and security of the country. People no longer felt safe—neither their lives nor their property. There was no peace during the day nor comfort at night. Troubled by this terrifying situation, some peace-loving individuals launched a reform movement. As a result, the prominent leaders of the Quraysh tribes—such as Banu Hashim, Banu Zuhrah, Banu Asad, and others—gathered at the house of ʿAbdullah bin Judʿan. There, the Beloved Prophet’s ﷺ uncle, Zubair bin Abd al-Muttalib, proposed that a formal pact should be made to improve the current situation. The tribal chiefs of Quraysh then made a pact, taking a solemn oath to uphold the principle of “Live and let live.” They pledged: • To eliminate lawlessness from the land • To protect travelers • To support the poor • To stand up for the oppressed • And to ensure that no oppressor or usurper would be allowed to remain in Makkah (Sīrat al-Mustafā, p. 89) At the time of this agreement, the Noble Prophet ﷺ was 20 years old. The pact of Hilf-ul-Fudool was established in response to widespread economic instability, injustice toward the poor, and the rise of cruelty and oppression—all of which were harming not only the social fabric but also the economy of the region. To restore peace and eliminate oppression, such a pact was urgently needed. The Beloved Prophet ﷺ also participated in this agreement to contribute to the revival of justice and economic stability. He ﷺ appreciated this pact so much that even after the declaration of prophethood, he would say: “If I were invited today to such a pact again, I would surely accept it.” This pact of Hilf-ul-Fudool also shows that economic development does not depend solely on how much someone is earning or whether money is circulating in the market. Rather, for the economy to grow, it is also necessary to eliminate oppression and ensure that the weak receive their due rights. Otherwise, the economy cannot progress.
At Age 25: The Beloved Prophet’s ﷺ Trade Journey to Syria
The Final Messenger of Allah ﷺ possessed a sublime character from the beginning. When he reached the age of 25, his truthfulness and honesty became acclaimed everywhere. The titles of “Sadiq” (Truthful) and “Amin” (Trustworthy) began to be heard across Makkah. There was an esteemed and wealthy noblewoman of Makkah, named “Khadija”. She needed an honest person who could take her trade goods to the Levant for sale and return with a good profit for her. When the acclaim of his trustworthiness and truthfulness reached her, she sent him a message, saying: “Take my goods to the Levant. I will pay you double the amount that I pay others.” The Holy Prophet ﷺ accepted this request of hers and departed for the Levant with the trade goods. The slave of Sayyidatuna Khadija, named ‘Maysarah’, was also accompanying him in this trip who would serve him and fulfil his other needs. Once again, when the Holy Prophet ﷺ reached Busra, the famous city of the Levant, he ﷺ rested near the place of worship of a monk named ‘Nastoora’. That monk already knew Maysarah. Due to this, he came to him, and pointing towards the Holy Prophet ﷺ, asked him: “Who is that under this tree?” Maysarah replied: “He is a dweller of Makkah, and he belongs to the Banu Hashim tribe; his name is ‘Muhammad’ and his title is “Ameen”. The monk said: “No one except a prophet stopped under this tree.” He then asked: “Does redness remain in his eyes?” Maysarah replied: “Yes, it does, and it remains all the time.” Having heard this, Nastoora said: “He is the last Prophet of Allah Almighty. I can see all those signs in him which I read in the Torah and the Zaboor. I wish I could be alive when he ﷺ declares his prophethood. If I stay alive, I will help him fully, and spend my entire life serving him. O Maysarah! I advise you not to ever leave him; keep serving him, because Allah Almighty has blessed him with prophethood.” The Beloved Prophet ﷺ returned soon after selling the trade goods. When the Noble Prophet ﷺ returned to Makkah with double the profit from the trade, some time later, a proposal of marriage came from Sayyidatuna Khadijah al-Kubra رَضِيَ ٱللَّٰهُ عَنْهَا. After consultation, the Beloved Prophet ﷺ married Sayyidatuna Khadijah al-Kubra رَضِيَ ٱللَّٰهُ عَنْهَا at the age of 25. Sayyidatuna Khadijah al-Kubra رَضِيَ ٱللَّٰهُ عَنْهَا presented all her wealth and possessions in the service of the Beloved Prophet ﷺ, freeing him from financial concerns and worldly needs. The Beloved Prophet ﷺ himself also mentioned this in a Hadith.
Economic Life from Marriage to the Declaration of Prophethood
After the nikah, when Sayyidatuna Khadijah al-Kubra رضي الله عنها offered all her wealth and possessions to the Holy Prophet ﷺ, he ﷺ still continued his trade activities. Although narrations related to this are limited, there is enough evidence—such as what is mentioned by Ibn Kathir—to confirm that the Beloved Prophet ﷺ did continue some level of trade. Alongside his own business engagements, the Beloved Prophet ﷺ would also help fulfill the financial needs of others. This is evident from the words of Sayyidatuna Khadijah رضي الله عنها after the first revelation was received. When the first revelation was sent down and due to the awe-inspiring majesty of divine revelation, a special state overtook the blessed body of the Beloved Prophet ﷺ, Sayyidatuna Khadijah رضي الله عنها comforted him by saying: “Allah Almighty will surely deal kindly with you, for you uphold the ties of kinship, bear the burden of your family, strive with devotion and discipline, honor your guests, support the helpless and the oppressed, treat the poor and needy with kindness, interact with people with excellent character, assist them in truth and avoid harming them, give shelter to orphans, speak the truth, and fulfill trusts.” According to narrations, the Holy Prophet ﷺ also personally took on the responsibility of caring for his cousin Sayyiduna Ali رضي الله عنه, who was being raised by his father, Abu Talib. As we discussed earlier, Abu Talib had a large family. So, to reduce his burden, the Holy Prophet ﷺ took responsibility for Sayyiduna Ali رضي الله عنه, while Sayyiduna Abbas رضي الله عنه, another uncle of the Holy Prophet ﷺ, took charge of caring for Sayyiduan Jaʿfar رضي الله عنه, another of Abu Talib’s sons. From the words of Sayyidatuna Khadijah رضي الله عنها, it becomes clear that the Beloved Prophet ﷺ would regularly assist the poor, care for the weak and helpless, and fulfill their needs. Caring for economically disadvantaged individuals is also vital for the overall growth and stability of society and the economy. At this point in the course, we have now explored in detail how the economic life of the Beloved Prophet ﷺ before the declaration of prophethood was spent. This phase offers us powerful lessons and inspirations in: • self-respect, • hard work, • simplicity, • and compassion for the poor. These are qualities we are all encouraged to embody.
The economic life from the declaration of prophethood until the migration
The economic life from the declaration of prophethood until the migration
From the declaration of Prophethood until the Hijrah, the blessed life of the Beloved Prophet ﷺ spans approximately thirteen years. We have already explored the economic conditions before the Beloved Prophet’s ﷺ prophethood. Reflecting on that period, it becomes clear that the economic system presented by our Beloved Prophetﷺ holds a central role in the progress and rise of any state or government. The economic model given by the Beloved Prophet ﷺ is, in fact, the best system for all of humanity until the end of time. At this stage of the course, we are now discussing the economic matters of the Beloved Prophet ﷺ from the time of his Prophethood until the Hijrah. Although there are fewer details on this topic, this is because after the declaration of Prophethood, the Beloved Prophet ﷺ was deeply engaged in the propagation of Islam—a task that was his greatest and most important responsibility.
The Holy Prophet’s ﷺ Declaration of Prophethood and the Rejection by the Wealthy of Quraysh
The Noble Prophet ﷺspent the first forty years of his blessed life among the people of Quraysh. They were well aware of his truthfulness, trustworthiness, and noble character. Yet, when the Beloved Prophet ﷺ openly declared his Prophethood, the wealthy leaders of Quraysh refused to accept his message—solely because he did not possess wealth or material status. Allah Almighty mentions this in the Holy Qur’an, saying: وَ قَالُوْا لَوْ لَا نُزِّلَ هٰذَا الْقُرْاٰنُ عَلٰى رَجُلٍ مِّنَ الْقَرْیَتَیْنِ عَظِیْمٍ “And they said, ‘Why was the Qur’aan not sent down upon some chief of these two great towns (i.e. Makkah and Taa’if)?’” (Surah Az-Zukhruf, 43:31) Under this verse, the Tafsir Sirat al-Jinan explains: The disbelievers of Makkah questioned why the Holy Qur’an was revealed to the Holy Prophet ﷺ. They said: "Why was this Qur’an not revealed to a great man from one of the two cities?" — referring to someone who possessed abundant wealth and many slaves. According to the tafsir, the “great man” refers to Walid bin al-Mughirah from Makkah and ʿUrwah bin Masʿud Thaqafi from Ta’if. The Quraysh disbelievers believed that their wealth made them superior. They said: “How can we follow someone who doesn’t even have riches?” They also feared that if they followed the Holy Prophet ﷺ, they would lose their custodianship of the Kaʿbah, which was a major source of economic benefit for them. They wrongly assumed that the Holy Prophet ﷺ desired wealth, leadership, or authority, and so they offered him these things, saying: “If you want wealth, we will give it to you. If you want leadership, we’ll give it to you.” But the Noble Prophet ﷺ rejected all such offers and continued to invite them to the Oneness of Allah. It is mentioned in detail in Seerat Ibn Hisham. Interestingly, the early believers who embraced Islam during this period were mostly from the poor and economically marginalized classes. This holds a profound lesson and encouragement for the poor of our own time: Those who first accepted Islam and entered the fold of the Beloved Prophet’s ﷺ servitude were largely the poor. So we must hold firmly to the luminous teachings of Islam. Today, we sadly witness how some people under the pressure of poverty say things that may cost them their faith. May Allah protect us! In extreme situations, people have even committed suicide, or worse—killed their own family members before taking their own lives. A Muslim’s faith is becoming increasingly weak. But it should be an honor for the poor and underprivileged that those who first believed in the Beloved Prophet ﷺ—and in all previous Prophets علیہم الصلوۃ والسلام —were primarily the poor. Even after accepting Islam, they faced severe persecution and torment at the hands of the disbelievers. Yet, they remained steadfast in their faith. They endured every hardship but never wavered in their commitment to Islam.
The Spread of Islam and Quraysh’s Economic Boycott of Muslims
Islam continued to spread, and more and more people were entering its fold. Though the disbelievers of Quraysh inflicted severe oppression and torture, those who had accepted Islam—and those who were still embracing it—were not at all willing to abandon the faith. When the disbelievers of Quraysh saw that most of the people accepting Islam were not financially strong, they decided to impose an economic boycott. The leaders of the disbelievers of Quraysh consulted among themselves and agreed to stop all trade and financial dealings with the Muslims. They also blocked food and other supplies from reaching the Muslims, hoping that hunger and poverty would force them to leave Islam. But the Muslims remained firm and unwavering. The Beloved Prophet ﷺ himself endured these harsh economic conditions alongside his followers. This economic boycott lasted for three years. When the boycott ended—one of the reasons for which was Abu Talib—that same year, he passed away, and only a few days later, Sayyidatuna Khadijah al-Kubra رضي الله عنها also passed away. Soon after, the persecution from the Quraysh resumed. The Noble Prophet ﷺ named that year ‘Aam-ul-Huzn—“The Year of Sorrow.” (This entire account is mentioned in Tabaqat Ibn Saʿd, Sirat Ibn Hisham, and Mawahib Ladunniyyah.)
Marriage to Sayyidatuna Sawdah رضي الله عنها and Payment of the Mahr
A few months after the passing of Sayyidatuna Khadijah al-Kubra رضي الله عنها, the Beloved Prophet ﷺ married Sayyidatuna Sawdah رضي الله عنها (the reason for this marriage has already been discussed in the Family of the Beloved Prophet ﷺ course). The Noble Prophet ﷺ paid a mahr of 400 dirhams to Sayyidatuna Sawdah رضي الله عنها. As we learned in the earlier phase of this course, the fair distribution of wealth is an important principle in Islamic economics. Within Islamic economics, the payment of mahr is also a means of circulating wealth. It is the right of the wife and obligatory upon the husband. Even before the declaration of Prophethood, the practice of setting a mahr at the time of nikah existed among people. The Beloved Prophet ﷺ upheld this practice in Islam, and wherever reform was needed, he provided guidance. This nikah took place three years before the Hijrah, which means that the financial state of the Beloved Prophet ﷺ was such that he was fully able to fulfill the obligation of mahr. The Beloved Prophet ﷺ not only paid the mahr, but he also hosted a walimah that reflected the principles of Islamic economics. The Beloved Prophet ﷺ served dates, sattu, and a few simple food items, and this was the walimah for his nikah to Sayyidatuna Sawdah رضي الله عنها. From this, we learn two key lessons: 1. The Beloved Prophet ﷺ hosted his walimah in an extremely simple and modest manner. 2. There was no extravagance, no wastage, and no show or display. Today, in our society, walimahs often cost hundreds of thousands of rupees—mainly for the sake of show, or due to social pressure, which leads to unnecessary expenses, wastage, and even spending on sinful activities. We should conduct our nikah and wedding affairs in accordance with the Seerah of the Beloved Prophet ﷺ, so that we avoid financial burdens and uphold the principles of Islamic economics.
The Marriages of the Beloved Prophet’s ﷺ Three Daughters Before the Hijrah
The Noble Prophet ﷺ arranged the nikahs of his three daughters — Sayyidah Zaynab, Sayyidah Ruqayyah, and Sayyidah Umm Kulthum رضي الله عنهن — before the Hijrah. These nikahs were also conducted with great simplicity. Arranging the nikah of one’s daughters is also part of financial matters. At that time, the Beloved Prophet ﷺ was facing intense hardship and opposition from the disbelievers of Makkah due to his mission of spreading Islam. The Muslims were also under a social and economic boycott. Yet despite these extremely difficult circumstances, the Beloved Prophet ﷺ fulfilled this personal financial responsibility and conducted the nikahs of his daughters in a modest and simple manner. By doing so, he left a timeless message for the Ummah: No matter how difficult the times may be, one should fulfill their responsibilities with simplicity and dignity, so that their financial life is not negatively affected. (The nikah of the Holy Prophet’s ﷺ fourth daughter took place after the Hijrah.)
The Holy Prophet’s ﷺ Migration and the Major Economic Issue of Trusts
When Sayyidatuna Khadijah al-Kubra رضي الله عنها passed away, the Beloved Prophet ﷺ was 50 years old. On one hand, this was a moment of deep personal grief for the Beloved Prophet ﷺ, and on the other, he was facing intense rejection from the disbelievers of Makkah. To console and honor His beloved ﷺ, Allah Almighty granted him the miraculous journey of the physical Mi‘raj, during which the Beloved Prophet ﷺ was blessed with the vision of Allah Almighty with his blessed eyes. (This miracle has been briefly mentioned in the Journeys of the Prophet ﷺ course, and a detailed course will be designed on it separately, inshaAllah.) When the Beloved Prophet ﷺ informed the people that during a part of the night he traveled from Masjid al-Haram to Masjid al-Aqsa, led the Prophets in prayer there, and then returned, the disbelievers refused to believe him, out of sheer stubbornness and misfortune. However, those who were destined to receive guidance continued entering the fold of Islam. As the oppression from the Quraysh intensified, the Beloved Prophet ﷺ instructed his followers to begin migrating. Gradually, the Muslims began migrating in groups to Madinah al-Munawwarah, while the Beloved Prophet ﷺ had not yet received permission from Allah Almighty to migrate. When the Quraysh realized that the Muslims had found refuge in Madinah, they feared that the believers would become economically and socially strong and eventually overpower them. Out of this fear, they plotted to assassinate the Beloved Prophet ﷺ (God forbid). But Allah Almighty informed His beloved ﷺ of their scheme and granted him permission to migrate. At that time, some of the disbelievers’ entrusted items were still with the Beloved Prophet ﷺ. To return them, he appointed Sayyiduna Ali رضي الله عنه, instructing him to return those entrusted items to their rightful owners before joining him in Madinah. Safeguarding trusts and returning them securely to their owners is a vital part of Islamic economics. If trusts are not protected and betrayal becomes common in society, it leads not only to moral decay but also to economic instability. Therefore, this important economic principle derived from the Seerah of the Holy Prophet ﷺ should be among the top priorities of every Muslim. With this, we conclude the phase of the course covering the Holy Prophet’s ﷺ economic life up to the Hijrah. From this phase, we learn that: • Even in the most financially challenging conditions, one must remain firm on the truth. • One must never fear proclaiming the truth, even when the enemy seems strong and powerful. May Allah Almighty grant us steadfastness upon the Seerah of the Messenger ﷺ. Ameen.
The economic life of the Holy Prophet ﷺ after the migration (Hijrah)
Economic Life of the Holy Prophet ﷺ After Migration
From the time of migration until his blessed passing, the Holy Prophet’s ﷺ life in Madinah spanned ten years. At the beginning of the migration journey, Sayyiduna Abu Bakr Siddiq رضي الله عنه presented a camel named Qaswa to the Holy Prophet ﷺ. The Holy Prophet ﷺ accepted this gift, but he also paid its price to Sayyiduna Abu Bakr رضي الله عنه. This shows that the Beloved Prophet ﷺ ensured arrangements for his livelihood even during the journey of migration. Regarding Sayyiduna Abu Bakr رضي الله عنه, it is also mentioned in Seerat Ibn Hisham that he carried five or six thousand dirhams with him. When the migration began, the Holy Prophet ﷺ stayed in the Cave of Thawr for the first three days, after which the journey toward Madinah continued. For guidance along the route, the Holy Prophet ﷺ appointed a man named Abdullah bin Uraiqit—who at that time was not a Muslim—on wages. This highlights yet another aspect of the economic life of the Holy Prophet ﷺ: that during the migration journey, he hired even a non-Muslim for service on wages. From this, it is understood that it is permissible to take service on payment from non-Muslims as well.
Arrival of the Holy Prophet ﷺ in Madinah and the Economic Condition of Madinah
When the Noble Prophet ﷺ migrated to Madinah, the economic and financial conditions of the city were not favorable. The wealthy exploited the rights of the poor, and landowners did not care for the rights of the farmers. Usury had spread to such an extent that even if a poor person required a small loan, he could not obtain it without interest. There was a large number of poor people in Madinah, and alongside this economic issue, there was also the matter of caring for the migrants who had left everything behind and come to Madinah. And it is evident that these were not the only matters—the responsibility of propagating the religion also rested upon the Holy Prophet ﷺ. Moreover, the Jews, who were wealthy and dominated the markets of Madinah, required both economic reform and the call to the true religion. We sacrifice ourselves for the Noble Prophet ﷺ, who faced the greatest of challenges and the harshest of circumstances. Yet, with patience, steadfastness, and complete submission to the Divine Will, the Beloved Prophet ﷺ continued to resolve every matter with wisdom. The primary purpose of this course, however, is to learn specifically about the personal economic life of the Noble Prophet ﷺ. Therefore, we will not be discussing in detail the Companions رضي الله عنهم or the general economic issues of that era.
Stay of the Holy Prophet ﷺ in Madinah
When the Beloved Prophet ﷺ arrived in Madinah, he stayed, by the command of Allah Almighty, at the house of Sayyiduna Abu Ayyub Ansari رضي الله عنه. This stay lasted for approximately seven months. Sayyiduna Abu Ayyub Ansari رضي الله عنه, along with the other Ansar Muslims, extended great hospitality to the Noble Prophet ﷺ as well as to the emigrants who had come with him. During the time that the Beloved Prophet ﷺ resided in the house of Sayyiduna Abu Ayyub Ansari رضي الله عنه, the responsibility of providing food, drink, and clothing for the Holy Prophet ﷺ rested with him. However, some of the Ansar Companions would also send meals to the Noble Prophet ﷺ. It is recorded in Dala’il al-Nubuwwah that Sayyiduna Sa’d bin Ubadah رضي الله عنه once sent a traditional dish of that time, called “Tufayshil,” for the Beloved Prophet ﷺ. Sayyiduna Abu Ayyub Ansari رضي الله عنه relates that he saw the Noble Prophet ﷺ eating Tufayshil with great delight. In the second volume of Dala’il al-Nubuwwah, further details are mentioned: food used to be sent daily from the homes of Sayyiduna Sa’d bin Ubadah and Abu Asad bin Zurarah رضي الله عنهما for the Noble Prophet ﷺ, and together with him, ten to fifteen people would also share in the meal every day.
Arrangements for a Permanent Residence after the Period of Hospitality
After seven months of the noble hospitality of Sayyiduna Abu Ayyub Ansari رضي الله عنه, a permanent residence was arranged for the Noble Prophet ﷺ. First, land was purchased for Masjid al-Nabawi, and this purchase was made by Sayyiduna Abu Bakr Siddiq رضي الله عنه. Then, the construction of the residence of the Noble Prophet ﷺ began. The purchase of the land, the building of the house, and the furnishing of the residence were all accomplished through the gifts and contributions of various Companions رضي الله عنهم. After this, the Noble Prophet ﷺ sent two Companions to Makkah al-Mukarramah to bring his household—Sayyidatuna Sawda رضي الله عنها and his two noble daughters, Umm Kulthum and Fatimah al-Zahra رضي الله عنهن. (The marriage of Sayyidatuna Aisha Siddiqah رضي الله عنها had already taken place before the Hijrah, but her departure to live with the Beloved Prophet ﷺ took place after the migration. Thus, Sayyidatuna Aisha رضي الله عنها migrated with her family.) For this journey, the Noble Prophet ﷺ gave the two Companions 500 dirhams, which he had borrowed from Sayyiduna Abu Bakr Siddiq رضي الله عنه. (Tabaqat Ibn Sa’d) Initially, two chambers (hujrah) were built. Later, as the Noble Prophet ﷺ contracted further marriages, additional chambers were built one after another. From the homes of the Companions, gifts of food and drink would regularly be sent for the Noble Prophet ﷺ and his noble wives. Besides this, the Companions رضي الله عنهم would often host gatherings in their homes, and the Beloved Prophet ﷺ would honor their invitations by personally attending. In the economic life of a household, food, drink, and shelter hold primary importance. If we observe the early period after the Hijrah, the arrangements for the residence of the Noble Prophet ﷺ and the provisions of food and drink were largely supported by the gifts and contributions of the noble Companions رضي الله عنهم. However, it should be remembered that this does not mean that the sustenance of the Noble Prophet ﷺ and his blessed family depended solely on these gifts. Rather, the noble wives of the Holy Prophet ﷺ would themselves prepare food in their homes, and they would also arrange for drinks. At times, they would even host meals for the Companions رضي الله عنهم.
The fundamental principles of Islamic economics and modern economic systems
The fundamental principles of Islamic economics and modern economic systems
In the first stage of this course, we studied the principles of the Islamic economy in the light of the Qur’an and Hadith. After that, we also examined the complete economic aspects of the Noble Prophet’s ﷺ life. Compared to that era, Muslims today are far greater in number, yet why is it that at that time there was peace and stability in economic matters, progress continued, and Muslims even became a superpower? But afterwards, gradually, the economic strength of Muslims declined, social corruption emerged, and today Muslims are suffering from an apparent downfall. In this stage, we will only make a comparison to understand what exists in today’s modern economy that prevents Muslims from progressing. Comparison of the Islamic Economic System and the Modern Economic System 1. The Islamic economic system is based on the commands of Allah and His Messenger ﷺ. Whereas the modern economic system is based on secular ideologies. 2. In the Islamic economic system, wealth continues to circulate through zakat, charity, and other means. Whereas in the modern economic system, wealth remains only in the hands of the capitalists. 3. In the Islamic economic system, interest (riba) is forbidden and not permissible in any form. Whereas the modern economic system is founded upon interest. 4. In the Islamic economic system, deception, hoarding, unlawful profiteering, and haram trade (such as alcohol and gambling) are prohibited. Whereas in the modern economic system, most business decisions are based on profit, even if it requires resorting to deception and dishonesty. 5. In the Islamic economic system, business partnerships operate on principles such as mudarabah and musharakah, where profit and loss are shared. Whereas in the modern economic system, investments and loans are mostly interest-based, without any sharing of loss. 6. The goal of the Islamic economic system is not merely to earn wealth but also to promote social welfare and justice. Whereas in the modern economic system, profit is the highest priority, even at the cost of human well-being. 7. In the Islamic economic system, it is necessary to earn wealth through lawful means (halal trade, hard work). Whereas in the modern economic system, many unlawful means (interest, gambling, haram businesses) are considered permissible. 8. In the Islamic economic system, honoring promises and agreements is essential; otherwise, it is considered dishonesty. Whereas in the modern economic system, many companies and institutions break agreements through deceit. 9. In the Islamic economic system, employees’ rights, dignity, and fair compensation for labor are ensured. Whereas in the modern economic system, most companies use employees merely for the sake of profit. 10. In the Islamic economic system, there is a principle of moderation in prices, and government intervention is allowed to prevent artificial inflation. Whereas in the modern economic system, large corporations gain full control over prices and create artificial scarcity to raise prices. Through this analysis, every person of understanding will realize how far Muslims have strayed from the Seerah of their Holy Prophet ﷺ, and how much effort is required to strive for true progress. Therefore, at the very least, we must bring change within ourselves—InshaAllah, change will also come in society.