Course Introduction:

This course will discuss the economic rational of Islamic concepts and Islamic rules in analyzing economic activities. It will discuss and examine how Islam has played its role in several alternative concepts to business and economic strategies in different Muslim countries. Students will have an insight into how Islam can be considered as a universal system to be applied to economic policies, business strategies and government regulations. Finally, students will gain a unique perspective into how and why Islamic values contribute to a dynamic understanding of the business climate. This subject will also arm students with the skills to understand and apply the elements of Islamic economics to economic.

Course Objectives & Learning Outcomes:

By the end of the course, students should be able to:

  • realize that Islam provides full guidance to its followers in all spheres of social life
  • understand the Islamic injunctions ordained for economic behavior, both in the individual as well as collective capacity.
  • they have to compare the prevailing system with that devised by Islam,
  • capture the socio-economic problems faced by the present day Muslim countries
  • find ways and means to reconstruct the system in vogue according to Islamic guidelines
  • achieve greater stability, equity in distribution and reduction in poverty as the primary goals of all developing nations


Microeconomics-I and Macroeconomics-I

Texts and References:

  1. in Islamic Economies, (Islamic Foundation UK) Edited by Professor Khurshid Ahmed.
  2. Monetary and Fiscal Economics of Islam, edited by Muhammad Arif.
  3. Money and Banking is Islamic by Zia ud Din Ahmed, Munawar Iqbal and Fahim Khan
  4. Islamic Economics: Theory and Practive by M.A. Mannan.
  5. Islamic Economics by Abdul Hameed Dar and Mian Muhammad Akram


  1. Issues in Islamic Banking by Siddiqui, M.N.- (1983)- Leicester, The Islamic Foundation, UK.
  2. Distributive Justice and Need Fulfillment in an Islamic Economy – (1986) by Iqbal, Munawar (Ed) IIIE, International Islamic University Islamabad.
  3. Introduction to Islamic Finance –by Taqi Usmani, Justice M – (2000)
  4. Badawi, Muhammad A. Zaki- Zakat and Social Justice: English transliteration of the

Book: KitabulAmwal by Imam Abu Abaid Al-Qasim – (1979) – The Islamic Council of Europe, London.

  1. Khan, Tariqullah, (1996), Practice and Performance of Mudarbah: A case study of Pakistan, IRTI, Islamic Development Bank, Jeddah.