History of Islamic economics

This is a sub-article of Islamic economic jurisprudence and Muslim world.Between the 8th and 12th centuries, the Muslim world developed many advanced concepts and techniques in production, investment, finance, economic development, taxation, property use such as Hawala, an early informal value transfer system, Islamic trusts known as waqf, systems of contract relied upon by merchants, a widely circulated common currency, cheques, promissory notes, early contracts, bills of exchange, (mufawada), advanced agricultural techniques, high literacy rates, and enlightened capture and use of slaves.Specific Islamic concepts involving money, property, taxation, charity included zakat (the ""taxing of certain goods, such as harvest, with an eye to allocating these taxes to expenditures that are also explicitly defined, such as aid to the needy.""); Gharar (""the interdiction of chance ... that is, of the presence of any element of uncertainty, in a contract (which excludes not only insurance but also the lending of money without participation in the risks); and riba (charging interest or at least high interest on money lent). These concepts, like others in Islamic law and jurisprudence, came from the ""prescriptions, anecdotes, examples, and words of the Prophet, all gathered together and systematized by commentators according to an inductive, casuistic method."" Sometimes other sources such as al-urf, (the custom), al-'aql (reason) or al-ijma (consensus of the jurists) were employed. In addition, Islamic law has developed areas of law that correspond to secular laws of contracts and torts.Self-described ""Islamic economics"" ""emerged"" in the 1940s, and as of 2004 ""Islamic Banks"" have been established in over 70 countries and interest has been banned in three: Pakistan, Iran and the Sudan.