The Nature, Principles, and Mechanisms of FairOwnership and Income Distribution According toIslamic Economics

Abstract

The global economic system, dominated by capitalism and socialism, has demonstrated fundamental weaknesses in establishing a balance between individual rights and social justice. This study aims to conduct an in-depth examination of the concept of ownership (al-milkiyah) from the perspective of Islamic economics as a comprehensive alternative system. The method employed is library research using a descriptive-analytical qualitative approach to literature on fiqh muamalah and Islamic economics. The findings indicate that the essence of ownership in Islam is grounded in the principle of Tawhid (monotheism), wherein absolute ownership belongs solely to Allah SWT, while humans serve as trustees (khalifah) who manage wealth in a relative capacity. The Islamic economic system adheres to the principle of multi-faceted ownership (multiownership), recognizing individual, public, and state ownership proportionally, in contrast to the extremities of capitalist and socialist systems. Furthermore, Islam regulates the mechanisms of wealth acquisition through contracts (akad), productive labor, and non-transactional means such as inheritance, with a strong emphasis on the lawfulness of the source. The implementation of distributive justice is manifested through the balance of societal assets, the strict prohibition of hoarding (ihtikar), and the mandatory instruments of zakat alongside the encouragement of infaq and sadaqah to prevent the exclusive circulation of wealth among the elite. Thus, the concept of ownership in Islamic economics offers an ethical foundation that is socially just and inclusive for the welfare of humanity.