8 Most Critical Sharia Economy Characteristics You Must Understand Before Practicing It

Sharia economy focuses on Islamic values in running economic activities. Those who apply this economic principle should understand its basic characteristics first.

Here, we will explain more about the most critical Sharia economy characteristics. As a result, you can use this economic principle and get benefits from it.

Fairness in Sharing Business Profit

Fairness is the first critical characteristic of the Sharia economy. Because of that, this method focuses on the profit-sharing method. For example, you are running a business and invite your friends to be an investor.

The first thing to do is agree on the percentage of profit sharing. Indeed, it is not only about sharing the profit but also the loss. The profit is from the business income minus operating costs.

In this case, we are about to share the business's net profit. The amount of the business net profit you are about to share is different each period. It depends on the profit in that period.

The key to running this method successfully is transparency. Both parties must know the business's financial condition in each period.

Apply Spiritual Principles to the Economy Activities

Running the Sharia economy is not only about gaining money but also applying spiritual principles in the process. Remember! This method uses Islamic values in running its activities. It means people who are involved should understand the sharia of gaining profit, running a business, and others.

The business profit is not only for the owners but also to donate to others who need it. The point is that people who run the Sharia economy principle should balance the material and spiritual aspects. It is also a critical characteristic.

Because of this, people will not be greedy, do something cruel, and many more that harm others. Since it is based on Islam, so all the economic principles are taken from Quran and Hadith.

Free to Develop Its Business

One of the Sharia economy characteristics is free to develop its business. This characteristic makes people enjoy running the Sharia economic activities. The most important thing to note is that freedom is based on Islam.

So, Islam boosts people to be more creative and innovative in all sectors, including the economy. Yet, you should understand the right paths and rules while practicing your creativity and innovation. For example, you must ensure that your creative and innovative ideas will be good for others.

You Should Understand That Everything in The World is From Allah (God)

The difference between the Sharia economy and other economic principles is the belief that everything is from God. In Islam, it means that everything in the world is from Allah. It includes your money, products, colleagues, and other things related to your business.

Because of that, you also run a business contract with Allah. It means that you run His product based on His rules. This principle prevents people from being greedy and doing something cruel.

They tend not to take all and do anything to gain profits. They will always remember Allah in running and developing their business.

All Business Activities Based on Islamic Shariah, Faith, and Moral

Another difference between the Sharia economy and other economic principles is its source of activities. Since it derives from Islam, all business activities in the Sharia economy must be based on Islamic Sharia, faith, and morals. There are two main sources for Muslims to control their activities, including business activities, which are Quran and Hadith.

The Quran is the statement from Allah, whereas Hadith is coming from the prophet Muhammad S.A.W. The prophet Muhammad also performed business and trading in the past. People who apply the Sharia economy should follow the way the prophet Muhammad did. The truth is that the things that the prophet Muhammad did were also from Allah.

Indeed, the goal of this principle is to prevent greed, bad business attitudes, and unfair, cruel, and even criminal behavior. At the same time, the focus of this principle is not only working for making money. It is also doing Islamic principles, such as praying five times a day, donating some money, being kind to others, and many more. As a result, all parties, whether business owners, investors, and even customers were satisfied.

Gain Serenity after the Business Process

Serenity is also the main goal of applying the Sharia economy. Remember! Allah is watching everything you do. It becomes an effective controller to do everything in the world, including running and developing a business.

You will always say the truth about the condition of the products and services. You also share the profit with your colleagues, investors, and employees fairly.

As a result, you feel calm and relieved after the process. You know that you are not the only one who satisfies the business process but also all parties, including colleagues, investors, agents, and even customers.

Work Together with the Government

Only because this economic principle is based on Islam doesn't mean that there is no involvement from the Government at all. Indeed, the Sharia economy practitioners work together with the government to build a great economic atmosphere. The government can also give the most effective solution in case there is a problem during the application of this economic model.

Once again, the government should also realize that this economic model is according to Islam. So, the rules should be referred to Islam.

There Is No Usury in the Practice

Other economic models may include usury in their practice, but it is not in the Sharia economic model. Usury is haram in Islam. Usury means the additional money in loans from lenders to borrowers.

Say you are borrowing $5 from your friend. Your friend asks $10 if you can't give the money back within a week.

The additional $5 in this transaction is usury. Islam has given a solution to prevent usury in economic activities, including profit sharing.

So, you finally understand the Sharia economy characteristics. Try to practice all the characteristics above to apply Sharia economic activities in your life. The characteristics above are designed for the goodness of people who practice this economic model.

In the end, the economic condition will grow well. Even if it is not, Islam has the best solution through the Quran and Hadith.