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Category — Islamic Finance
In the Islamic economic system, all economic activities are grouped into permissible (Halal) and prohibited (Haram) transactions.

Economic goods, food items, inheritance, inheritor’s properties, rights, etc., all have their rulings spelt out in the Quran.

1. Haram in Consumption:

Islam has given a detailed code of rules concerning permitted and prohibited forms of spending.

Prohibited forms:
• Extravagance and dissipation.
• Spending on luxuries.
• Spending wealth on liquor or other narcotics, pork.
• Islam insists that lawful means should be adopted for spending wealth in permitted ways. The use of unlawful means for lawful spending of wealth has been absolutely forbidden. The basic principle laid down in this regard is that only permitted and pure things should be used to satisfy needs.

2. Haram in the Production of Wealth:

Islam explains in detail the right and wrong means of earning wealth.

Unlawful Means:
• Income derived from the manufacture, purchase, or sale of all unlawful and banned items is Haram.
• Income derived from the following is Haram (unlawful): Bribery, expropriation, fraud, deception, telling lies, plunder, stealing, robbery, Riba, whoredom, arts, and activities calculated to spread licentiousness, businesses involving injustice, and superstitious arts such as sorcery.
• Income from monopolistic exploitation is Haram (unlawful).
• Wealth earned by the hoarding of goods with the intent to raise their prices is Haram (unlawful).
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