Hazara Islamicus (Dec 2014)
Profit Maximization: an Islamic Perspective
Abstract
This short study deals with the mainstream economic notion of “profit maximization” from an Islamic perspective. The dominant view in Islamic economics today is that Islam does not recognize profit maximization. It is considered to be in contrast with the notion of hereafter. However, we argue that this claim is not supported by the original sources of Shar┘ ‘ah. On the contrary, there are numerous instances, both direct and indirect, that profit, being an outcome of trade and business activities, is a blessing of Allah which a Muslim is supposed to search and strive for. This claim will be supported from both Qur’┐ n and ╓ ad┘ th. The focus will be on theoretical aspects of the discussion. If it can be proved that Islam does not oppose profit making, that it makes profit making compulsory at times, that Islam does not restrict profit to a ceiling. The original sources tell us that a Muslim will be held responsible and answerable for the questions of “where” and “how” the wealth, for which profit is a part, was earned and spend, but the question of “why” it was earned in the first place is not to be asked.
