This book discusses a new paradigm for the students of economics to prepare them for policymaking and implementation in a value-based environment. It is to serve as a complementary text on principles of economics in a different perspective of combining values and ethics with market economy – efficiency, growth, equity with justice and fair treatment, and sacrifice for others as fellow human beings. It introduces the contours of ‘beyond market economy’ for combining market and beyond market factors to achieve shared growth and prosperity on broader levels in the societies. It thus encourages the students to think as economists for policy formulation with the objective of equitable and sustainable growth of national and global economies. The book discusses the role of the state and the state institutions in implementing property rights, and that of all economic agents to tackle the complex problems of eliminating hunger, alleviating poverty, and realizing sustainable growth in national and global economies. In the whole discourse, it gives priority to human beings whatever their position, i.e. consumer, producer, employer, employee, worker, manager, and those who are left behind due to market functioning, sickness, or any other hindrance.

The first part of the book explores the need for a novel approach, theorizes complementary principles of economics, and discusses property and wealth creation with special reference to efficiency, equity, and social harmony in the Islamic framework. The second part discusses property rights, the law of exchange of goods, services, and monetary units, and the markets of labor, entrepreneurs, physical and financial capital in Islamic perspective.

While the third part introduces the institutions and framework of beyond market economy, the fourth part on consumption and investment discusses consumer behavior, savings, and investment decision-making as a crucial part of policymaking. The fifth part covers the banking, finance, financial markets, and financial accommodation without interest, cryptocurrency, and forward and futures markets. The last chapter presents guidelines and basic principles of how policy ought to be formulated in an economy guided by Islamic Sharīʿah.

Overall, the book develops a unique theoretical model based on Islamic ethical values to enable more resilient financial factors and goods markets. It discusses all components of Islamic economics as an alternative to conventional economics. It would inspire the economists to think beyond utility, profit maximization, and growth per se. It invites the students of economics and researchers to develop the growth models that could suit their economies on the different dimensions of Islamic economics, and empirically test them where data is available.

About Author 

Prof. Dr. Muhammad Ayub is Director Research and Training at Riphah Center of Islamic Business (RCIB), a constituent part of the Faculty of Management Sciences of the Riphah International University, Islamabad. He holds Ph.D. degree in Islamic Finance (Governance), Master’s degrees in Economics, Islamic Studies, and Arabic, with graduation in Law, and graduation from religious school. Besides, he is a diplomaed associate of the Institute of Bankers, Pakistan. He has 35 years’ experience in research, teaching, and training in Islamic economics, banking, and finance. He has served as a member of the Sharīʿah Board of the Bank of Khyber (2012-2018). Currently, he is juris-consult for re-hearing of Ribā Case in Federal Shariat Court of Pakistan, member of the AAOIFI’s Education Board (AEB), and Chairman of the AEB’s Curriculum Review Committee. Prof. Ayub’s book, Understanding Islamic Finance, published by John Wiley & Sons, London, in 2007 and recognized as a textbook, has been translated into Arabic, Malay Bahasa, Urdu, Turkish, etc. In addition to a book published by SBP in 2002 and contributing chapters in five books on Islamic economics and finance, he has authored dozens of papers for various journals. Prof. Ayub is the Editor of Riphah’s Journal of Islamic Business and Management and Non-resident Editor of AAOIFI’s Journal of Islamic Finance Accountancy. He has prepared training materials for different training and education courses on Islamic banking and finance, particularly for NIBAF, ABE London for levels 5 and 6 (Islamic Economics and Islamic Finance), and a few other entities. Formerly, he was with the SBP where he headed the Islamic Economics Division and Sharīʿah Compliance Division as Senior Economist and Senior Joint Director in the Research and Islamic Banking Departments. He has also served as Head of Islamic Banking at SBP’s NIBAF, the training arm of the Central Bank.