Islamic and Modern Economic Models: A Comparative Study

Abstract

This study presents a comprehensive comparative analysis of economic development through two distinct paradigms; Islamic and modern economic models. In the contemporary era of globalization and rapid technological change, the research critically examines modern economics its focus on GDP growth, liberalization, and market capitalism alongside Islamic economics grounded in the Qur’an and Hadith. Core Islamic principles such as prohibition of Riba “interest”, Zakat “obligatory charity”, ethical investment, and social welfare are explored as mechanisms for justice and stability. The study highlights how integrating Islamic ethical foundations into modern frameworks can address income inequality, promote equitable wealth distribution, and ensure sustainable growth. It concludes by offering a moral and practical roadmap for economists, and policymakers to harmonize material progress with social justice, fostering inclusive and resilient global economies.

Keywords:Islamic economics, modern economic development, comparative study, economic justice, sustainability, Zakat, Riba prohibition, social equity.

https://doi.org/10.5281/zenodo.21787510