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Hoarding versus circulation of wealth from the perspective of maqasid al-Shari'ah

Ahmad Asad Ibrahim (Centre for Islamic Finance, Bahrain Institute of Banking and Finance (BIBF), Manama, Bahrain)
Radwan Jamal Elatrash (Kulliyah of Islamic Revealed Knowledge and Human Sciences, International Islamic University Malaysia (IIUM), Kuala Lumpur, Malaysia)
Mohammad Omar Farooq (Centre for Islamic Finance, Bahrain Institute of Banking and Finance (BIBF), Manama, Bahrain)

International Journal of Islamic and Middle Eastern Finance and Management

ISSN: 1753-8394

Article publication date: 14 April 2014

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Abstract

Purpose

The purpose of the paper was to explore the issue of hoarding and dishoarding in a modern context, especially as it relates to circulation of wealth, an important economic objective from the Islamic viewpoint.

Design/methodology/approach

This paper presents a survey of scholarly positions on the issue of hoarding and circulation of wealth from Islamic perspectives and analyzes how these positions affect the shaping of financial and economic dimensions of life in our contemporary time. The paper draws on the primary sources, the Qur'an and hadith, and examines the positions of the classical and contemporary scholars, especially in the context of the growing interest in finance, the financial system and economy from the Islamic perspective.

Findings

The paper identifies the fact that the notion of hoarding (kanz) needs significantly revised understanding, as money as a concept and tool has evolved substantively in modern times. It also examines variant positions regarding the concept of hoarding and finds more merit in favor of the position that paying zakat is not enough to be exempted from the Qur'anic implications about hoarding. It also identifies and examines securitization, such as sukuk, as an important tool for better circulation of wealth.

Originality/value

Hoarding and dishoarding are not widely explored topics in contemporary literature on Islamic economics and finance. This paper makes a valuable contribution in its attempt to highlight the problem of hoarding and the challenge toward greater circulation of wealth.

Keywords

Citation

Asad Ibrahim, A., Jamal Elatrash, R. and Omar Farooq, M. (2014), "Hoarding versus circulation of wealth from the perspective of maqasid al-Shari'ah ", International Journal of Islamic and Middle Eastern Finance and Management, Vol. 7 No. 1, pp. 6-21. https://doi.org/10.1108/IMEFM-06-2012-0053

Publisher

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Emerald Group Publishing Limited

Copyright © 2014, Emerald Group Publishing Limited

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