Property rights according to the Quran and Sunnah and their economic implications for contemporary societies

Abstract EN

Property rights are among the most important human rights that are carefully protected in Islam.

Property rights are clearly defined in Islam and there are many institutions designed to safeguard these rights.

Moreover, there are distinct ethical and legal obligations in Islamic jurisprudence that govern the acquisition of private ownership.

Generally, the use of property is restricted by the prohibitions of ribā (interest), gharar (uncertainty), hoarding and other prohibitions of the Shariah (Islamic law).

Moreover, the Shariah prescribes certain obligations on wealth such as paying zakāh (mandatory alms) and recommendations such as ṣadaqah (charity).

Ostensibly, these legal and moral limits have the benefit of protecting property rights, promoting more equal income distribution and realising the well-being of individuals and society at large.

Success or failure in protecting property rights has contributed to many civilisations’ emergence or collapse.

Since the main role is given to the individual for obeying rules, it is not expected that the government plays an active role in protecting property rights in Islam because a priori all individuals should be rule compliant.

Moreover, the individual is given the most critical role to facilitate the efficient allocation of resources.

For this reason, individuals’ rights, including property rights, are protected carefully.

This paper reviews the theoretical evidence supporting the legal views of property rights according to Islam.

The differences between the Islamic perspective and conventional theories are discussed and the rules governing property rights are clearly specified.

The paper also assesses the implications of the protection of property rights on economic matters in modern times.

Likewise it argues that property rights formulated by the rules and principles of the Qurʾān and Sunnah (prophetic traditions) directly result in societal development and economic growth.