Concept Of Islamic Economics Research Articles

Law Review of Islamic Capital Market Role to Support Sustainable Economic Development

Objective - The objective of this paper is to assess on how the rule of Islamic capital markets to support sustainable economic development and what kind of instruments can be developed. Method – The method used in this research is the study of normative juridical approach to legislation and the concept of Islamic economics through literature review. Result – Issuer's business activities related to support for environmentally friendly business activities are part of the implementation of sharia principles despite the provisions of the implementation of Islamic finance through a decision has not been stated . All types of instruments issued by issuers of sharia in Indonesia should be consistent with Islamic economic values, including the commitment to enforcement of environmentally friendly business activities. Conclusion – This finding suggests to strengthen the legal instruments in the issuer's issuance of Islamic instruments in the form of regulations issued by the Securities and Exchange Commission and through the National Fatwa Council of Sharia. Keywords : Islamic Capital Markets, sustainable economic development, friendly environment

A FRAMEWORK OF ISLAMIC ECONOMICS WITH REFERENCE TO ISLAMIC TAXATION AND ALLOWABLE EXPENDITURES

The concept ofIslamic Economics underscores the view that Islam, as a religion dictates atotal way of life. The system of taxation in Islam, which is a prominent partof its economics is said to be divinely designed to arrest poverty in theMuslim community. Zakaat has often been cited as a good example of this systemof taxation. It is generally accepted as an act ordained by God to ensure fairre-distribution of economic resources among the followers of Islam. This paperexamines Islamic economics, and in doing so, it evaluates the meaning of Zakaatwith a view to throwing more light on its uniqueness as an Islamic form oftaxation. It also highlights allowable expenditures for tax purposes that areavailable to business entities, subject to levy of business Zakaat. It comparessuch tax deductions with conventional ones operating in non-Islamic settings,specifically in common law jurisdictions. The article concludes that despiteambiguity surrounding the Islamic taxation especially on issues of tax base,treatment, procedures, interpretation of law, and several others, Islamic taxpolicies are meant to foster plans on development in their entirety and toensure social security with the objective of alleviating poverty in the Muslimcommunity.

A Critical Assessment of Islamic Economics

This paper presents a critical assessment of the widely discussed concept of Islamic Economics. The two different interpretations of Islamic economics, as the study of the functioning of an interest-free economy, and the validity of moral values in the economy are discussed. It is shown that none of these interpretations can help to create an acceptable foundation for an Islamic economics. Far away from laying the foundation for such an economics the question is raised how an Islamic economy would function, based on the Islamic principle of controlling the Nafs. Microeconomics and macroeconomics of such an economy are analysed, and its special features are compared to an economy functioning on the basis of laws devised by the conventional economic analysis.