1. INTRODUCTION: Objectives and Assumptions.

The main objective of this paper is to highlight the Islamic synthesis of the predominant view in respect of some key issues in Islamic economics. It would be designed in a way so that some policy guidelines can be derived as well as conclusions drawn. This outline is expected to facilitate either further theoretical development of Islamic economics as a science or to provide a structure of analysis from which an operational policy package may be evolved.
This paper is written on the assumption that the reader has some elementary knowledge of economics as well as some knowledge of the Shari’ah (Islamic jurisprudence). As such, the relevant verses of the Our'an or Hadith have not been reproduced, although every effort is made to record faithfully the essence of the Shari'ah and its spirit to elucidate the Islamic position in respect of the issues involved. At this stage it is perhaps desirable to have an overview of Islamic socio-economic philosophy, so that an integrated view of Individual-Society-State relationship is properly understood.