Relationship Between Fiqh and Economics

The issue that will be discussed in this essay is the relationship between fiqh and economics. However, bear in mind, the type of economy that will be discussed in this issue is Islamic Economics. In order to understand the relationship between fiqh and economics, we must first define the two terms. Fiqh is technically defined as understanding of the practical rules of shariah which has been deducted from their detailed evidences (Quran and Sunnah). It explains the rules of shariah in facing any kind of human activities. Islamic economics on the other hand, has many various definition that varies between scholars. One of the accepted definition is Isllamic Economic is defined as “the study of human falah according to achieved by organizing the resources of earth on the basis of human participation and cooperation ”

There are many similarities between fiqh and Islamic economics. First, both is a byproduct of the exercising of human intelligence and personal opinion. This means that both fields require deep understanding of knowledge and the ability to deduce an opinion rationally. Due to the fact that both fields require exercising personal opinions, outcomes from the situation may vary from one to another due to differences of perception and opinion.

The next similarity is that both fiqh and economics are both knowledge that is derived from the same primary sources. The primary sources mentioned is the Divine resources which is the Holy Quran and Sunnah. Although both fields require man to use their aql for decision making, the conclusion made should be in line with the Islamic teachings and values.

The third similarities between the two fields are that both fiqh and Islamic economics are widely used in the human aspects of life. In fact, both fields are derived in order to govern and act as a guideline for our daily activities. For example, Islamic economics explain what, how and for whom to produce for our consumption goods and services. The rules and guidelines that governs the economic problems is fiqh such as producing only halal goods, ethical business conducts and equitable distribution.

The last similarity hat will be discussed is the timeline of the consequences of both fields. The derived effects of implementing fiqh and Islamic economics do not only put in account the effects in this world, rather our deeds and decisions are also accountable in the Hereafter. For example, profit maximizing in Islamic economics. Not only the supplier are expected to minimize their cost to maximize their profit, their also expected to do it in a way that does not harm others, and also consider the profit maximizing that also accounts both