Exploring the Fiscal Policy of Nubuwwah in the Islamic Economic System

Abstract

Fiscal policy within the Islamic economic system is considered an integral part of the broader economic framework based on Islamic principles. Prior to the advent of Islam, the pre-Islamic Arab society already had an economy rooted in trade, agriculture, and wealth ownership, although without formal fiscal regulations. Following the introduction of Islam, fiscal systems were more systematically organized. Zakat became a crucial component in raising funds to assist needy Muslims and develop social infrastructure. Additionally, the jizyah tax was implemented, which applied to non-Muslims residing under the protection of the Islamic state. During the Prophet’s era, the Islamic economic approach aimed to achieve social and economic justice through the fair distribution of wealth. Under the leadership of the Khulafa al-Rashidin, Islamic fiscal policies remained grounded in the principles of justice and communal solidarity. For instance, Umar ibn al-Khattab formulated various economic policies to enhance the welfare of the people. Taxes and state revenues were allocated to support social, religious, and public welfare programs. This study is descriptive-analytical in nature, falling under the qualitative category, and employs a literature review approach to primary sources related to Islamic economic thought.