Islamic Economics in The World - Classical Muslim Commerce

Classical Muslim Commerce

During the Islamic Golden Age, guilds were formed though officially unrecognized by the medieval Islamic city. However, trades were recognized and supervised by officials of the city. Each trade developed its own identity, whose members would attend the same mosque, and serve together in the militia.

Technology and industry in Islamic civilization were highly developed. Distillation techniques supported a flourishing perfume industry, while chemical ceramic glazes were developed to compete with ceramics imported from China.

The systems of contract relied upon by merchants was very effective. Merchants would buy and sell on commission, with money loaned to them by wealthy investors, or a joint investment of several merchants, who were often Muslim, Christian and Jewish. Recently, a collection of documents was found in an Egyptian synagogue shedding a very detailed and human light on the life of medieval Middle Eastern merchants. Business partnerships would be made for many commercial ventures, and bonds of kinship enabled trade networks to form over huge distances. During the ninth century banks enabled the drawing of a check in by a bank in Baghdad that could be cashed in Morocco.

The concepts of welfare and pension were introduced in early Islamic law as forms of Zakat (charity), one of the Five Pillars of Islam, since the time of the Abbasid caliph Al-Mansur in the 8th century. The taxes (including Zakat and Jizya) collected in the treasury of an Islamic government was used to provide income for the needy, including the poor, elderly, orphans, widows, and the disabled. According to the Islamic jurist Al-Ghazali (Algazel, 1058–1111), the government was also expected to store up food supplies in every region in case a disaster or famine occurs. The Caliphate was thus one of the earliest welfare states, particularly the Abbasid Caliphate.

Read more about this topic:  Islamic Economics In The World

Famous quotes containing the words classical, muslim and/or commerce:

    Culture is a sham if it is only a sort of Gothic front put on an iron building—like Tower Bridge—or a classical front put on a steel frame—like the Daily Telegraph building in Fleet Street. Culture, if it is to be a real thing and a holy thing, must be the product of what we actually do for a living—not something added, like sugar on a pill.
    Eric Gill (1882–1940)

    For the salvation of his soul the Muslim digs a well. It would be a fine thing if each of us were to leave behind a school, or a well, or something of the sort, so that life would not pass by and retreat into eternity without a trace.
    Anton Pavlovich Chekhov (1860–1904)

    The whole commerce between master and slave is a perpetual exercise of the most boisterous passions, the most unremitting despotism on the one part, and degrading submissions on the other. Our children see this, and learn to imitate it.
    Thomas Jefferson (1743–1826)