The State Rule in treating monopolization in islamic legislation and its effect in economic development


Thanks to God and glory and peace be upon the prophet Mohammad and his relative and his colleagues. In Islamic legislation, the government has an important role in preserving people’s wealth and money, and the stability of their social and financial life. Monopolization and usury continued to be bad methods to plunder the people’s money and absorb their bloods. Islamic considered such bad deeds as a means to spoil construction and development and also a means to destroy the pillars of government. The monopolization of goods that people need is considered a great harm and big damage which is prohibited in Islam because it is a means of extorting people’s wealth. In this respect God says “O, believers, never get your money among each other by means of injustice except if they are in the form of commerce based on your satisfaction, and do not kill yourselves remembering that God is merciful with you” it is clear and abundant injustice. God’s advice in this respect is reflected in the prophet’s saying “O, my creatures I have prevented injustice on myself, so do not be unjust to each other ”. This case is among matters that spoil contracts and is considered a hindrance in the way of production process. Therefore Islam rejected that and didn’t allow it as a means of acceptable investment. The role of Islamic state plays an influential role to restore balance to the market and the organization of activity. This situation should oblige the government to put forward some regulations regarding this issue. Islamic jurisprudence is rich with what treats this matter adequately and maintain its pillars without mischief or astray. This research paper is divided into three parts and a conclusion.The first part is entitled : Monopolization- concept, rules and types. It deals with monopolization which means hiding the additional goods which are demanded by people at any time waiting for them to be sold with higher prices whether they are consuming or productive goods, and even if they are in the form of gold or silver. Schools of jurisprudence all agreed on the forbiddance of monopolization. Prophet Mohammad (PBUH) said : “Any one who monopolizes is a mistaker”. This means that he is a wrongdoer and rebellious and this is forbidden in Islam.The second part deals with the role of Islamic government in the treatment of monopolization. In this part I stated the methods adopted in Islam to prevent monopolization. They include : imposement of obligatory pricing. If the merchant insisted on monopolization he will be obliged by the Islamic ruler to sell the goods in the market.The third part deals with the monopolization practices and their effects on economic development.The conclusion is related to mentioning the most important results which included: monopolization is considered an economic and social crime. Moreover, the unreal and face speculations and the methods of hoax and so on, which are against the Islamic principles. This situation proved that what is presented by the Islamic shariah is the real guarantee for preventing disasters and crises. This has become clear in the world crises today as the Islamic banks and financial institutions are not affected by the crises like other institutions because the Islamic banks adopted the Islamic principles and the role of Islamic government is to maintain the balance of all concerned parties. Finally there should be an adequate social culture in a correct environment in which monopolization is prevented.


Role, treatment, monopoly