Exploring the Evolution of Islamic Economic thought from Classical Scholars to Modern Frameworks

Abstract

This study explores the evolution of Islamic economic thought, tracing its intellectual journey from the classical contributions of scholars such as Al-Ghazali, Ibn Taymiyyah, and Ibn Khaldun to the emergence of modern frameworks in Islamic finance and economics. Employing a qualitative historical and interpretive approach, the research analyses primary sources from classical scholarship alongside contemporary literature, with the aim of identifying both continuities and transformations in economic principles over time. The findings reveal that classical Islamic economic thought was deeply rooted in ethical and moral values derived from the Qur’an and Sunnah, emphasizing justice, fairness, and the welfare of the community. These principles guided discussions on taxation, market regulation, labour, and prohibition of Riba, forming the foundation of Islamic economic ethics. In the modern era, the discipline has adapted to new institutional settings through the development of Islamic banking, zakat management, and Sharia-compliant financial instruments. While these frameworks demonstrate the flexibility and relevance of Islamic economics in addressing contemporary challenges, they also highlight ongoing tensions between maintaining ethical authenticity and meeting the demands of global economic integration. Ultimately, the study underscores Islamic economics as a dynamic tradition, simultaneously preserving its foundational moral commitments while fostering innovation to address the complexities of modern socio-economic realities