Introduction Although there is no Muslim country, at present, which can be called an Islamic economy, in the sense of following, in a strict fashion, the teachings of the Qur'an, the traditions of Prophet Muhammad and the practices of early Muslims, a majority of Muslim consumers would seem to hold to Islamic values and views regarding the disposal of their incomes. The aim of this paper is to throw some light on the effect of this behaviour on optimal consumption of a Muslim individual. The paper is divided into three sections. Section one briefly summarises the economic behaviour of a non‐religious (rational) consumer. Section two discusses the utility function of a Muslim consumer and highlights the differences between this function and that of a non‐Muslim consumer. Section three determines the conditions of optimum consumption of a Muslim consumer.
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