Q.3 Write down the main principles of Islamic Economics. How do these principles provide solutions to contemporary challenges? 2022

The main principles of Islamic economics can be summarized as follows:

1. ): Islamic economics prohibits the charging or paying of interest on loans or investments. Instead, it encourages profit-sharing and risk-sharing arrangements.
2. : Islamic economics promotes the fair distribution of wealth and resources, and emphasizes the importance of helping the poor and needy.
3. : Islamic economics emphasizes the importance of conducting business and economic activity in a fair and ethical manner, with honesty and transparency.
4. ): Islamic economics prohibits speculation and gambling, which are seen as harmful and destabilizing to the economy.
5. : Islamic economics recognizes the importance of labor and encourages the fair treatment of workers, including fair wages and safe working conditions.

These principles provide solutions to contemporary challenges in several ways. For example:

Overall, the principles of Islamic economics provide a framework for promoting economic growth and development while ensuring that economic activity is conducted in a fair and ethical manner. By following these principles, it is possible to address many of the contemporary economic challenges facing the world today.