Abstract
In this study we aim to analyze ‘the functions of state in determining economic policies in Islamic tradition’ To achieve this aim, firstly the role and basic functions of state in Islamic tradition will be examined, then the need for government in modern economies will be discussed. In this frame, the main functions of the state are to maintain justice and prevent unfairness, protect the security of individual’s life and property as well as to protect the law and order, and provide business ethics, put the market mechanism into practice, regulate economic life and put some rules in that sense, drive and manage public goods, execute public services, maintain social security, and force people to do some work when necessary.
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