WORLD HISTORY

Detailed explanation-1: -Muslims were known to have a commercial talent notably encouraged by Islam, as well as excellent sailing skills. Thus, they could monopolize the East-West trade of the maritime Silk Roads, connecting various major ports of eastern Asian regions together.

Detailed explanation-2: -A Muslim can trade in those goods and commodities only the use of which has been declared to be Halal (lawful). There can be no trade and traffic in things the use of which is proliibited by Islam. For example, there can be no trade in wine, swine, dead bodies of animals and idols.

Detailed explanation-3: -Islamic merchants dealt in a wide variety of trade goods including sugar, salt, textiles, spices, slaves, gold, and horses. The expanse of the Islamic Empire allowed merchants to trade goods all the way from China to Europe. Many merchants became quite wealthy and powerful.

Detailed explanation-4: -According to Islamic economic principles and contrary to the conventional concepts, money has no intrinsic value, but is only a medium of exchange and store of value. Money cannot be sold nor rented out to generate “surplus value by itself”[6]. Therefore, money in Islam can only be exchanged for goods and services.

Detailed explanation-5: -In Islam, wealth can be obtained through two legal ways: one’s effort and through inheritance. By one’s effort, it means the accumulation of wealth through jobs, or contemporary dynamic tools such as investments in shares, trusts, funds, capitals and many other instruments which are permissible under Islamic rules.

Detailed explanation-6: -Islamic banks make a profit through equity participation, which requires a borrower to give the bank a share in their profits rather than paying interest. Some conventional banks have windows or sections that provide designated Islamic banking services to their customers.