An Introduction to Islamic Finance: Theory and Practice

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Introduction 3


analysis from rules of behavior (institutions) prescribed by the Creator
for individuals and societies. Examples are economic paradigms that are
based on Abrahamic traditions, Judaism (see, for example, Tamari 1987),
Christianity (see, for example, Long 2000) and Islam. The latter, the secular
tradition, takes as given, or derives, rules of behavior (institutions) that are
designed by humans and approved by society.
The meta-framework for Islam specifi es these rules of behavior within
the context of its fundamental principles. The core and fundamental
axioms of Islamic ideology are the belief in (1) the Unity and Oneness
of the Creator (tawhid), (2) the prophethood (Nubuwwa), and (3) the
ultimate return of everything to the Creator for the fi nal accountability
and judgment (Ma’aad).
The fi rst and most important of these principles is the Oneness and
Uniqueness of the Creator, a corollary of which is the unity of the creation,
particularly the unity of mankind. The axiom of Unity and Oneness of the
Creator requires the belief that all creation has one omniscient and omni-
present Creator—Allah (swt)—who has placed humans on this earth to
pursue their own felicity and perfection.^3 Further, it requires that the orbit
of man’s life is seen to be much longer, broader and deeper than the material
dimension of life in this world.
A corollary of the axiom of the Unity of the Creator is that all His cre-
ation constitutes a unity as well. The Qur’an (31:28) calls attention to the
fact that despite all apparent multiplicity, human beings are fundamentally
of one kind; they were created as one being (nafs) and will ultimately return
to Allah (swt) as one as well.
In a series of verses, the Qur’an exhorts people to take collective and
unifi ed social action to protect the collectivity from all elements of disunity.^4
These and many other verses order human beings to work hard toward
social unity and cohesion in constructing their societies, and preserve and
defend that unity. Unity and social cohesion are so central among the Divine
objectives set out for mankind in the Qur’an that it can be argued that all
conduct prohibited by Islam is that which ultimately leads to disunity and
social disintegration. Conversely, all righteous conduct prescribed by Islam
is that which leads to social integration, cohesiveness and unity. As a result,
Islam is a call both to the individual and to the collective and has given the
latter an independent personality and identity, which will be judged on its
own merits or demerits separately from the individuals that constitute the
collectivity. The fi nal judgment on individual actions will have two dimen-
sions: one as the individual and the other as a member of the collectivity.
The second fundamental principle is the belief in the Creator’s appoint-
ment of individuals to serve as His messengers and prophets to others of their
kind. These are very select among humans. Every messenger and prophet
affi rmed and confi rmed the messages revealed before them and invited the
people of their time and place to remind people of the rules of behavior
contained in the revelation and to apply those rules in accordance with the
added complexity of human life and the growth of human consciousness at

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