Tuesday, May 20, 2025
Anti-Capitalism In Quranic Economic Principles
By V.A. Mohamad Ashrof, New Age Islam
20 May 2025
This paper explores the Islamic imperative for the upliftment of the oppressed and examines anti-capitalist themes through Quranic analysis. Although mainstream religious interpretations often appear to serve the interests of the affluent and elite, a meticulous reading of the Quran reveals a distinct conclusion. Furthermore, this paper argues that the Quran delineates an economic framework that is pro-poor, devoid of exploitation, anti-speculative, dynamic, and developmental, achieved by minimizing economic imbalances.
Petroleum-rich Muslim nations often act as proponents of corporate globalization and are entrenched in a market economy. Renowned Islamic scholar Tariq Ramadan observes that even countries like Saudi Arabia, despite an Islamic facade, are enmeshed in a neoliberal economic system founded on usury and exploitative practices.
The human inclination to acquire material resources is innate. This inclination can have detrimental effects on human social life. Unchecked, this avarice has historically contributed to slavery, colonization, racism, capitalism, imperialism, Westernization (often under the guise of globalization), Nazism, fascism, Zionism, and belligerence. These phenomena have perpetuated injustice, oppression, and violence.
The Quran critiques humanity's obsession with wealth, which can lead to its downfall:
“He has fallen into a profound preoccupation with his love of wealth and glory” (100:8).
Justice: The Foundation of Quranic Ethics
Islam is firmly established on the principle of justice. This is integral to the concept of Tawhid (Monotheism), for God is inherently Just (Quran 6:115).
“O you who have believed, be persistently standing firm for Allah, witnesses in justice, and do not let the hatred of a people prevent you from being just. Be just; that is nearer to righteousness.” (Quran 5:8).
“O you who have believed, be persistently standing firm in justice, witnesses for Allah, even if it be against yourselves or parents and relatives. Whether one is rich or poor, Allah is more worthy of both. So follow not [personal] inclination, lest you not be just.” (Quran 4:135).
Justice is the ideal that should motivate believers in their struggle for poverty alleviation.
A fundamental tenet of Tawhid is that all wealth ultimately belongs to God (Quran 2:284). Humanity acts merely as a trustee (57:7). God has provided resources for all living beings on Earth (11:6), including humans (6:152, 17:31, 29:60). These resources are intended to be accessible to all through principles of mutuality (36:47). A religious approach overly preoccupied with the Hereafter to the neglect of worldly concerns is untenable. Alongside striving for success in the Hereafter, believers are encouraged to pray for a good life in this world (Quran 2:201).
While acknowledging natural disparities in resource availability (43:32), the Quran cautions against wealth accumulating solely among the affluent (59:7). The economically vulnerable are entitled to receive resources from society to meet their needs (51:19). The poor possess a rightful claim on the wealth of the affluent:
“And in their wealth is a recognized right for the needy and the deprived” (Quran 70:24-25).
The Earth's resources are not intended for the exclusive possession of a wealthy few. The divine plan for mortal existence includes providing a dwelling place and sustenance on Earth for a designated period (2:36).
Freedom from hunger, resource abundance, and peace are considered divine blessings (Quran 16:112, 106:3-4).
As Orientalist scholar W. Montgomery Watt aptly observed, Quranic revelations, beyond the core tenets of God's oneness (Tawhid), prophethood (Risalah), and the Hereafter (Akhirah), were also aimed at uplifting the poor and vulnerable (Watt, 1953, pp. 60-72).
The Quran unequivocally states that the mission of the prophets is to establish justice and prevent exploitation and oppression (57:25). From the outset of Prophet Muhammad's mission, there were calls to aid the weak, needy, orphaned, and destitute (74:43-44). Prophetic missions consistently faced opposition from the wealthy elite of their societies (34:34). However, those who were arrogant and haughty on Earth were ultimately brought to ruin (28:58).
Capitalism or Qarunism
The Quran, in essence, equates a particular form of wealth accumulation and arrogance, characteristic of some capitalist tendencies, with "Qarunism," after the figure of Qarun. The Quran skilfully analyses the psychology exemplified by Qarun:
When told, “...do good as Allah has done good to you, and desire not corruption in the land. Indeed, Allah does not like corrupters,” Qarun retorted, “I was only given it because of knowledge I have” (Quran 28:77-78).
This "Qarunistic" or capitalistic mind-set reflects an arrogant attitude: that wealth is solely one's own, to be disposed of as one pleases. The Quran critiques various facets of this mentality (39:49, 41:50, 102:8).
Poverty is often a tragic consequence of wealth concentration. Practices such as alcoholism, gambling, and illicit sexual activities can contribute to wealth accumulating in certain hands while diminishing elsewhere. These contribute to societal inequality and imbalance.
The true measure of human worth is not wealth, but rather wisdom and piety (49:13, 58:11). The Quran does not mandate absolute economic equality, acknowledging that wealth can accrue based on differing abilities. However, human justice must prevail, and equal opportunities should be afforded to all. Distinctions of race, ethnicity, caste, or religion should not impede an individual's advancement (30:22, 2:213, 49:13, 49:11). All forms of racism are portrayed as stemming from satanic arrogance (cf. 38:76-77).
Capitalism, from this perspective, can lead to the following injustices:
• Widening the gap between the affluent and the impoverished.
• Exacerbating economic inequality.
• Disproportionately concentrating wealth and power.
• Increasing monopolization.
• Increasing economic exploitation.
• Suppressing workers and labour unions.
• Increasing unemployment.
The concept of "spending" (Arabic: infaq, from the root ن-ف-ق, n-f-q) and its various verbal and nominal forms appear approximately 75 times in the Quran (e.g., 2:262, 4:39, 13:22, 25:67, 35:29). It is noteworthy that in many instances where such terms for spending appear, they are linked with prayer.
Wealth is not bestowed due to God's special affection for affluent individuals; rather, it serves as a test (2:155, 3:186, 8:28, 64:15). The wealthy are merely trustees of this wealth (57:7, 2:254, 4:39, 13:22). An individual does not attain greatness merely by possessing wealth (34:37).
God disapproves of arrogance displayed on account of wealth. God brought ruin upon many arrogant individuals, such as Qarun, and those who disregarded the poor (28:81, 17:16, 23:64, 28:58). The Quran, which strongly condemns the hoarding of wealth (57:24), also clarifies that true success is for those who are saved from their own avarice.
Regarding what to spend, the Quran answers the query: “They ask you, [O Muhammad], what they should spend. Say, ‘The surplus [beyond your needs]’” (2:219).
The Quran, in a spirit that can be seen as a precursor to universal declarations of human rights, declares humanity's noble station: “And We have certainly honoured the children of Adam...” (17:70).
It emphasizes that everyone is entitled to basic necessities such as food, clothing, and shelter, which are provisions from God (cf. 6:165, 67:15). Those who neglect to help the poor are characterized akin to disbelievers or face severe condemnation (69:34). The Quran admonishes certain attitudes prevalent among the wealthy, such as neglecting orphans and not urging the feeding of the poor, in strong terms (cf. 89:17-20). It also warns of divine retribution for the wealthy who fail to use their resources for the betterment of the poor and helpless (69:34-35, 76:8-10). Furthermore, it implies that systematic measures should address the plight of the vulnerable, orphans, and captives/slaves (76:8-9). The emancipation of slaves is depicted as an arduous yet virtuous path (90:11-16). The Quran envisions an economic system wherein everyone's basic needs can be met (30:38, 2:215).
The Quran mandates spending wealth on various categories of recipients: the poor (e.g., 8:41, 2:271), orphans (e.g., 2:177, 8:41), debtors (9:60), travellers (e.g., 8:41), kinsfolk/foreigners in need (cf. 24:22), captives/prisoners of war (76:8-9), widows (support implied, e.g., 2:236 for divorced women), the destitute (51:19, 70:24-25), the needy (e.g., 8:41), and for freeing slaves (2:177, 9:60, 58:3). Spending wealth for the upliftment of the vulnerable is considered a significant form of jihad (struggle/sacrificial effort) (8:72, 49:15). One should spend not merely from surplus or unwanted wealth, but from that which one values and cherishes (3:92). Spending should be done without expectation of gratitude from the recipients (2:262-263) and not for ostentation (2:264, 4:38). One who refrains from spending in the way of God (which includes uplifting the poor) is, in effect, contributing to their own spiritual detriment or societal harm (2:195). Withholding wealth from the needy can be seen as a form of arrogance and transgression (cf. 50:24-25). This spending is not limited to individual charity; it extends to dedicating resources to broader social welfare initiatives (61:10-11).
Rejection of the Capitalist System
Numerous societal ills are seen as inevitably intertwined with and exacerbated by certain manifestations of the capitalist system. This is attributed to the uncontrolled concentration of wealth and the undue influence of affluent elites on governance, creating a pernicious cycle. These ills encompass corruption, bribery, substance abuse (like alcohol), illicit sexual activities, embezzlement, diverse forms of exploitation, erosion of consumer rights, encroachment of consumerist culture, marginalization of vulnerable groups, economic crises fuelled by speculation, and the depletion and destruction of natural resources.
The Quran Offers Principles To Address Such Crises.
The Quran condemns the hoarding of wealth as a grave offense (9:34-35, 104:2-7, 3:180). Stinginess is portrayed as a destructive trait (cf. 2:195). Hoarding wealth offers no ultimate protection against calamities (cf. 4:37, 57:24, 92:8-9). Conversely, wealth spent for uplifting the poor (i.e., “in the way of God”) is promised to yield greater returns, spiritually and socially (cf. 92:18).
The Quran prohibits all forms of corruption: “O you who have believed, do not consume one another's wealth unjustly but only [in lawful] business by mutual consent” (4:29).
“And do not consume one another's wealth unjustly or send it [in bribery] to the rulers in order that [they might aid] you to consume a portion of the wealth of the people in sin, while you know [it is unlawful]” (2:188).
Beyond overt theft (5:38), indirect forms of misappropriation are forbidden: “Give full measure and weight and do not deprive people of their due” (7:85). “...Whoever defrauds will bring forth [on the Day of Resurrection] that which he has defrauded. Then every soul will be fully compensated for what it earned...” (3:161).
Islam aims to eliminate all forms of exploitation from the economic system, envisioning a just and balanced economic order. It prohibits all forms of unjust exploitation of others' wealth (4:29, 4:161). It prohibits all forms of extortion through deceit (2:188, 3:161). The Quran also condemns religious figures who wrongfully consume people's wealth (9:34 is more direct).
Workers must receive fair and timely wages for their labour (principles derived from verses emphasizing justice in dealings and fulfilling measures, e.g., 7:85, 11:84, 17:35, 83:1-3).
Various forms of gambling (maysir), which includes speculation leading to unjust gain, are prohibited (5:90-91, 2:219). Gambling can foster a mind-set of acquiring wealth unjustly, potentially causing animosity and disrupting social harmony. Gambling, by promoting the desire for quick, unearned riches, can undermine a sound economic structure.
As vicegerents (Khalifah) on Earth, believers are obligated to share resources, aiming for social equity, irrespective of colour, caste, or nationality (cf. Quran 2:30, 6:165, 35:39). Believers should strive to ensure that the benefits of societal progress are accessible to all segments of society, advocating for the inclusion of marginalized groups.
Believers should be prepared to reject systems akin to exploitative capitalism, which can be seen as epitomizing injustice. This is because such systems are prone to exploiting and devaluing labour through the power of capital.
Orphans must be treated with respect and protected (89:17), and their wealth, along with that of the poor, must not be misappropriated (6:152, 4:2). Women have a right to their own earnings and property (4:32), and there should be no gender-based discrimination in reward for righteous deeds (cf. 4:124).
The Quran prohibits excessive consumption (6:141) and exhorts against miserly hoarding (9:34, 3:180). Extravagance and wasteful spending are condemned as evil (17:26-27). Moderation in consumption is also enjoined (20:81).
The Quran strictly prohibits defrauding consumers (5:1, 4:29, 83:1-3). Accuracy in weights and measures must be scrupulously observed (6:152, 55:7-9, 26:181-183, 83:1-4); the Quran sometimes links such fairness to cosmic balance. Financial transactions should be meticulously recorded (2:282). The distribution of one's wealth through bequests (wasiyyah) should be justly determined (cf. 2:180, 5:106). In the absence of a valid will, or for the bulk of the estate, inheritance distribution is divinely prescribed (4:7, 4:11-12).
Income derived from alcohol (5:90) and from promoting or benefiting from indecency (cf. 24:19) is forbidden. Forcing female slaves into prostitution for monetary gain is a grave sin (24:33). Forcibly inheriting women (as property) or preventing them from remarrying to seize their dowries is forbidden (4:19).
The Quran posits that human selfishness and greed are primary causes of environmental degradation, social inequities, and other terrestrial problems:
“Corruption has appeared throughout the land and sea by [reason of] what the hands of people have earned” (Quran 30:41).
Islamic philosopher Seyyed Hossein Nasr observes that ecological balance is disrupted by the selfishness inherent in profit-driven corruption and exploitation, and by the disregard for humanity in the unchecked pursuit of industrial growth (Nasr, 1997, p. 20).
Zakat System
Zakat literally means "purification"; giving Zakat is thus a means of achieving spiritual and material purity (cf. 92:17-21). One cannot attain true righteousness until one spends from what one loves (3:92). Spending should be selfless, without expecting even thanks in return (cf. 76:8-9).
From one's lawful earnings, one should give to the needy and poor (2:267). This type of expenditure is considered spending "in the way of God" (cf. 6:142).
Those who do not believe in the Hereafter are described as not giving Zakat (41:7), implying faith is a prerequisite for its true fulfilment. The rewards for those who give Zakat with faith are multiplied, especially in the Hereafter (cf. 27:3, 31:4).
Voluntary charity (Sadaqah), beyond obligatory Zakat, is better given discreetly to the needy, especially those who do not beg openly (2:271).
Accountability for all bestowed wealth is emphasized (102:8; cf. 27:40, 64:15). The obligation to spend for societal good is not necessarily fulfilled solely by the minimum obligatory Zakat, as further spending from lawful earnings is encouraged (cf. 6:141, 2:267).
When Zakat funds are circulated within the general economy, they can generate new employment opportunities and income streams. Ideally, Zakat aims to help recipients achieve self-sufficiency, thereby transitioning them from being Zakat recipients to potential Zakat payers (Gidado, 2003, p. 83).
Waqf (charitable endowment) is another significant instrument for social progress. The contributions of Waqf-funded institutions like schools, colleges, hospitals, orphanages, and scholarship programs have been historically substantial (Doi, 1984, p. 34).
The Cancer of Interest (Riba)
The Arabic term for usury/interest, Riba (ربا), literally means "to increase" or "to multiply." While trade facilitates permissible (halal) growth, riba represents an impermissible (haram) increase (2:275).
Interest, in this context, refers to the predetermined surplus added to capital solely due to the passage of time on a loan (cf. Chapra, 1985, p. 56). Khurshid Ahmad defines prohibited interest as money that accrues on capital over time without the lender sharing in the risk of loss (Ahmad, 1995, p. 37).
The term Riba appears eight times in the Quran (2:275 (thrice), 2:276, 2:278, 3:130, 4:161, 30:39). In each instance, the gravity of its prohibition is underscored.
Aristotle, in a similar vein regarding sterile money, likened it to a barren hen (Qureshi, 1991, p. 6).
Jewish Talmudic law, akin to Islamic jurisprudence, also regards interest-based lending (neshek) as problematic or sinful under certain conditions (Lewis & Algaoud, 2001, p. 191).
The Old Testament specifically prohibits usury: “If you lend money to any of my people with you who is poor, you shall not be like a moneylender to him, and you shall not exact interest from him” (Exodus 22:25). This idea is repeated in many other places (Leviticus 25:35-37, Deuteronomy 23:19).
Jesus Christ was also against interest: “...lend, expecting nothing in return...” (Luke 6:35). This idea is echoed in Matthew 25:14-30. On this basis, charging interest, especially to the needy, has historically been viewed as contrary to the spirit of Christian charity (Islahi, 1988, p. 124).
The Quran encourages lending to the needy without interest, terming it a "beautiful loan" (Qard Hasan) to God, implying a divine reward (2:245). It also recommends granting concessions to debtors in difficulty (2:280). Lending to the poor without interest is consistently described as a "beautiful loan" (57:11, 64:17, 5:12, 73:20).
Money, in this ethical framework, is primarily a medium of exchange for goods and services, not an income-generating commodity in itself.
An interest-based system tends to concentrate wealth in the hands of a few. Interest can enable owners of capital to perpetuate selfishness and exploitative practices. It can divert money from its primary function as a medium of exchange (cf. Baumol & Blinder, 1991, p. 225). As interest rates are factored into the cost of production and prices, it can contribute to inflationary pressures and a decrease in the purchasing power of money (cf. Barro, 1993, pp. 108-109).
An interest-based system can exacerbate the perceived dangers of capitalism, potentially enriching the wealthy while dis-incentivizing productive effort for those who can live off interest without risk or work. A primary objective of an interest-free financial system is to eliminate economic exploitation. Such a system often treats financing more like investment. It promotes risk-sharing in investments between the entrepreneur and the capital provider. Empowerment of the poor is envisioned through a value-based economic system centred on profit-and-loss sharing (PLS).
Key schemes in Islamic finance designed to avoid interest (which is criticized for potentially creating passive income without commensurate effort or risk) include:
1. Musharakah (Joint Venture): Partners contribute capital and share profits according to a pre-agreed ratio, and losses in proportion to their investment. This contrasts with conventional interest-based lending where the lender receives a fixed return regardless of the borrower's actual profit or loss (Usmani, 2002, pp. 87-91).
2. Mudarabah (Profit-Sharing Agreement): One party provides capital, while another provides expertise and management. Profits are shared according to a pre-agreed ratio, while financial losses are borne by the capital provider (Bello, 2003, pp. 56-57).
3. Murabahah (Cost-Plus Sale): The seller discloses the cost of an item and sells it to a buyer at a marked-up price, with the profit margin known to both parties. Payment can be deferred.
Taking Sides with the Oppressed
It is a believer's duty to strive against prevailing global inequalities and injustices:
“And We wanted to confer favour upon those who were oppressed in the land and make them leaders and make them inheritors. And establish them in the land...” (Quran 28:5-6).
A Muslim is obligated to cooperate with all people in righteousness and piety (5:2) and to foster a world of amicable relations extending beyond religious affiliations, provided there is no hostility from others (cf. 3:110, 60:8-9). Therefore, restricting Zakat distribution solely to Muslims may contradict the broader Islamic spirit of universal compassion and justice.
The world needs the construction of an Islamic liberation theology that embodies the Quran's spirit, champions equality of opportunity and justice, acknowledges humanity's spiritual dimension, and actively challenges reactionary neoliberal economic systems. Such a theology is crucial for harnessing the transformative potential of Islamic teachings for the betterment of all humanity. Concurrently, efforts that seek to establish religious hegemony under the guise of Islam, thereby undermining its liberative ethos, must be identified and resisted. Humanity yearns for a just system that respects and accommodates religious and cultural diversity.
Bibliography
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Barro, Robert J. Macro Economics. New York: John Wiley & Sons, 1993.
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Watt, W. Montgomery. Muhammad at Mecca. Oxford: Clarendon Press, 1953. Bibliography
Ahmad, Khurshid. “Elimination of Riba.” In Elimination of Riba from the Economy, edited by Khurshid Ahmad, Institute of Policy Studies, 1995.
Barro, Robert J. Macro Economics. New York: John Wiley & Sons, 1993.
Baumol, William J., and Alan S. Blinder. Economics: Principles and Policy. New York: Harcourt Brace Jovanovich, 1991.
Bello, Falalu. “Divine Banking in Nigeria: The Qur’anic and Biblical Injunctions.” In Islamic Banking and Finance, edited by Sulaiman S. and Galadanci B.S., International Institute of Islamic Thought, 2003.
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Islahi, Abdul Azim. Economic Concepts of Ibn Taimiyah. Leicester: Islamic Foundation, 1988.
Lewis, Mervyn K., and Latifa M. Algaoud. Islamic Banking. Cheltenham: Edward Elgar, 2001.
Nasr, Seyyed Hossein. Man and Nature. Chicago: ABC International, 1997.
Qureshi, Anwar Iqbal. Islam and the Theory of Interest. Lahore: Sh. Muhammad Ashraf Publishers, 1991.
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V.A. Mohamad Ashrof is an independent Indian scholar specializing in Islamic humanism. With a deep commitment to advancing Quranic hermeneutics that prioritize human well-being, peace, and progress, his work aims to foster a just society, encourage critical thinking, and promote inclusive discourse and peaceful coexistence. He is dedicated to creating pathways for meaningful social change and intellectual growth through his scholarship.
URL: https://www.newageislam.com/islamic-ideology/anti-capitalism-quranic-economic/d/135592
New Age Islam, Islam Online, Islamic Website, African Muslim News, Arab World News, South Asia News, Indian Muslim News, World Muslim News, Women in Islam, Islamic Feminism, Arab Women, Women In Arab, Islamophobia in America, Muslim Women in West, Islam Women and Feminism
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