Islamic conscious capitalism: a ‘Third Way’ in light of classical scripture

The economic paradigm and framework advocated for in Islam is one that entails a unique combination of various socio–economic philosophies. This article advances the notion that Islam promotes a capitalistic economic model wrapped in its own garment of understanding—fashioned with threads of equity and stitched in patterns of benevolence and justice. This article examines the Islamic theological framework relating to the profit incentive and its spiritually–conscious methodology of capital procurement. The Qur’an contains around 370 references in regard to commerce, from which much of Islamic law relating to lending, banking and trading originates (Heck in Muhammad and the Arab roots of capitalism (Studien zur Geschichte und Kultur des Islamichen Orients)—Band 18. Walter de Gruyter, Berlin, p 5, 85, 2006). This article intends to explore the potential that these teachings have for an Islamic ‘Third Way’ (i.e. an Islamic contribution to economic philosophy and discourse that is in-between of, or an alternative to, both the purely individualistic primary concerns on prices, profits, and private property inherent in "pure" capitalism, and the purely communal command economics of communism, which often negates or discourages the promotion of self-interests). Part I of this paper intends to introduce the reader to the various sources of Islamic ‘law’ and its scope. In doing so, the philosophical nature and objectives of the Shariah will become evident, through the exploration of specific theological economic teachings. Part II intends to study Islam’s theological attitude toward entrepreneurship and the profit incentive, as well as the concept of the potential for salvation through ethical profits. Part III explores, in light of classical Islamic scripture, the various prohibitions within the Islamic concept of the economy. In doing so, the paper shall explore how values and theories found in classical Islamic scripture have found contemporary application within the growing modern Islamic finance industry, for example, through Shariah ‘screens’ applied on market indicies, such as the Dow Jones Islamic Market Index. Part III shall also explore Islamic edicts with regards to business practices, as well as environmental ethics. In doing so, Part IV concludes that there can indeed be such an Islamic ‘Third Way’, drawn along similar shared values found amongst other world religions.