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Fourth: the prohibition of monopoly (ihtikar)

Fourth: the prohibition of monopoly (ihtikar)

Point 4 of 7 — Lesson 2: Business Ethics, the Prohibition of Fraud and MonopolyQuestion bank: 0 questions (0 with pictures)

04 Fourth: the prohibition of monopoly (ihtikar)

Definition

  • Ihtikar: withholding goods from people in order to drive their prices up.
  • It harms public interests and contradicts the principle of mercy and solidarity.

Evidence

  • The Prophet ﷺ said: "Only a sinner withholds (monopolises)" — la yahtakiru illa khati'. Here "khati'" means the one who commits sin.

The Islamic position on monopoly and hoarding wealth

  • The Qur'an forbids both monopoly and hoarding wealth and withholding it from circulation, and urges directing wealth to what serves the public good of the society.
  • "And those who hoard gold and silver and do not spend it in the way of God — give them tidings of a painful punishment" — at-Tawba 34.

What monopoly produces

  • Rising prices and heavier burdens on the poor and the needy.
  • Depriving people of their basic needs and sowing resentment between the classes of society.

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