Note: Hujjat al-Islam wal-Muslimeen Ahmadreza Safa is among the young scholars teaching Islamic economics at the Islamic Seminary of Qom. As deputy director of the Tayyibat Institute for Economic Fiqh, he has completed advanced seminary studies (up to Level 4) and holds a doctoral degree in economics from the university. For many years, he has been dedicated to teaching and research in Islamic economics, with notable publications including Fiqh of Derivative Instruments and An Examination of the Islamic Parliament’s Banking Bill. In this exclusive oral contribution, he elucidates the fiqh dimensions of economic popularization, arguing that Islamic economics inherently demands such popularization.
Fiqh and Economics
Economic popularization is one of the key concepts that has gained prominence in Iran’s economy over recent decades. At its core, economic popularization seeks to strengthen the role of the people in economic affairs, enabling them to actively participate in areas such as investment, management, production, and ownership. Fiqh and economics share a close interconnection. Economics is fundamentally the discipline concerned with the optimal allocation of resources to unlimited needs across production, distribution, and consumption—making it inherently a behavioral science. Fiqh, for its part, is the discipline that explicates the rulings governing human conduct in both material and spiritual life. Consequently, fiqh and economics converge in the realm of economic behavior. This convergence is sometimes direct—as in public alms (khums, zakat, and similar obligations), transactions, hunting and slaughter, foods and beverages, usurpation, revival of dead lands, lost property, inheritance, blood money, and related matters—and sometimes indirect, as seen in issues from the chapters on marriage, vows, covenants, oaths, and others.
This convergence between the two disciplines does not, of course, imply that they constitute a single field of knowledge, nor does it suggest that the existence of economic fiqh negates the need for Islamic economics. On the contrary, the two are entirely compatible.
Islamic Economics and Popularization
If, following the approach of Martyr Sadr, we explore the various dimensions of Islamic economics, we arrive at the conclusion that Islamic economics must inevitably be people-centered—meaning it has no viable alternative to being people-oriented. In this system, the government functions solely as a supervisory, guiding, and supportive institution, limited to the three core responsibilities of guidance, support, and oversight. For instance, in the matter of zakat, both the collection and allocation methods fully incorporate people-oriented elements: the specified expenditures—such as for the needy, the destitute, and the wayfarer—are entirely people-directed and do not revert to the state; moreover, individuals may directly allocate their zakat to the purposes ordained by the Lawgiver, thereby significantly reducing the burden on the governing authority. Even in taxation and the public sector, Islamic economics endeavors to promote popularization.
From the diverse rulings of Sharia, we discern that the Lawgiver’s disposition in Islamic economics favors placing the economic burden on the people rather than the government wherever possible—an approach that amounts precisely to economic popularization. Accordingly, as noted, the government’s role is confined to guidance, support, and supervision.
The Pillars of Islamic Economics and Popularization
Islamic economics rests on two foundational pillars: wealth creation and economic advancement; and the elimination of discrimination and poverty, or social justice. In line with this, the Supreme Leader has stated that any measure which outwardly conforms to fiqh but fails to promote growth in production, wealth creation, and justice cannot be considered Islamic. This principle is also reflected in Qur’anic verses. For example, in the zakat verse of Surah al-Hashr, God Almighty concludes by explaining the purpose of zakat as “lest [wealth] circulate solely among the rich from among you”—highlighting the imperative of distributive justice and preventing wealth concentration in the hands of a select few.
Economic Popularization and Privatization
Economic popularization, of course, is not synonymous with mere privatization. Many privatizations carried out in recent years have failed to genuinely transfer wealth to the people and are therefore deemed invalid from the standpoint of Islamic economics. At the conclusion of the verse in Surah al-Baqarah prohibiting usury, the underlying wisdom is expressed as “so you do not wrong [others] and are not wronged”—indicating that neither party to a transaction should suffer harm. Similarly, in privatization, incorrect valuation leading to the transfer of assets at unduly low prices constitutes harm to the public treasury of Muslims and is thus illegitimate in Islamic economics. Likewise, if privatization proceeds in a manner that disregards justice—preventing equal participation in bidding—it too is rejected under Islamic economics. In such cases, it falls to the government to exercise oversight, ensuring that privatization and economic popularization are conducted properly.
Economic Popularization and the Circulation of Wealth Among the Wealthy
Economic popularization must not be implemented in a way that results in wealth circulating solely among the affluent. The verse “lest [wealth] circulate solely among the rich from among you” warns precisely against this risk. Therefore, in a society where segments of the population remain impoverished, cooperatives should be established to enable those disadvantaged individuals to become members and benefit from financial opportunities.