Financial crises of 2007-08 were the worst crisis the world has ever seen. These crisis engulfed the world and affected almost every part of it. Conventional economic patterns are major causes of such crises. In this economic system, profit maximization objective of corporate sector compress the wages as well as size of labor which finally cause two evils: widening rich poor gap and unemployment simultaneously. These evils beget other evils e.g. increasing trend of crime, illiteracy, unavailability of health facilities, moral and ethical diseases, social and economical injustice and insecurity etc. In this scenario, an obvious resemblance can be seen between modern economic system and no system of jahiliyyah when there were no institutions, no systems and no knowledge. Looking at actions and consequences, one can say that modern economic system is nothing other than replica of no system of old jahiliyyah but in relatively modern worst forms. Unlike to conventional economic system, Islamic economic System emerged claiming that it would enhance the socio-economic welfare of the mankind, but this dream is getting faded looking at the current practices in Islamic finance. Conventional finance is accused of high cost to client, but unfortunately current Islamic finance is not exception to this as well. It has become need of the time to look back the early Islamic revolutionary socio economic pattern to get how Islam revolutionized the principle-less pre-Islamic economic environment and how it developed principle abiding economic system to achieve the goals of Socio-Economic welfare of mankind. It will make possible to compare the modern prevailing economic and financial system with the pre-Islamic said system, and it will provide a true pattern through which modern age can effectively enhance its Socio-Economic welfare.

[1] Khan, M. Akram, What Is Wrong with Islamic Economics: Analyzing the Present State and Future Agenda, (UK: Edward Elgar Publishing Ltd., 2013), p: 32.

[1] Khan, M. Mansoor and Bhatti, M. Ishaq, Developments in Islamic Banking: The Case of Pakistan, (New York: Palgrave Macmillan, 2008), p: 7-37.

[1] Tong, Hui and Wei, Shang-Jin, Real Effects of the 2007-08 Financial Crisis around the World (March 18, 2009), p: 2. Retrieved from SSRN: http://dx.doi.org/10.2139/ssrn.1363819 (visited at Jan 8, 2016)

[1] Aydin, Necati (2013), Redefining Islamic Economics as a New Economic Paradigm, Islamic Economic Studies, Vol. 21, No. 1, June 2013 (1-34).

[1] Wolff, Richard (2011, October 11), Capitalism and Poverty, Retrieved from: http://rdwolff.com/content/ capitalism-and-poverty (Last visited at Jan. 11, 2016).

[1] Ibrahim, Mahmud, Merchant Capital and Islam, (Texas: University of Texas Express, 1990), p: 12

[1]Akhtar, Mohsin, Oracle of the Last and Final Message: History and the Philosophical Deductions of the Life of Prophet Muhammad, (USA: Xlibris Corporation, 2008), p: 196.

[1] Merchant Capital and Islam, p: 34

[1] Crone, Patricia, Meccan Trade and the Rise of Islam, (USA: Gorgias Press, 2004), P: 178

[1] Ibn Manzur (711H), Lisan al-Arab, (Berut: Dar e Sadir, 1414H), Vol: 6, p: 334

[1]Bukhari, Muhammad bin Ismail (194H), Sahih Bukhari, (Berut: Dar al-Nijat) Kitab al-Maghazi, Bab qatl e abi jahal, Hadith no. 4020, [ Abu jahal said while he was killed “فَلَوْ غَيْرُ أَكَّارٍ قَتَلَنِي ” (Would that I had been killed by other than a mere farmer), it shows how much Quraish used to dislike to be an agrarian]

[1] Lammens, Henri, Islam: Beliefs and Institutions, (London: Methuen & Co. Ltd., 1929), p: 15

[1] Ibrahim, Dr. Hasan, Tarikh al-Islam, (Berut: Dar Ihya al-Turas al-Arabi), Ch. 1, vol: 1, p: 63

[1] Sura Quraish, 106: 1-4

[1]Tabri, Muhammad bin Jarir (310H), Tarikh al-Tabri, (Berut: Dar al-Turath, 1387H), Vol: 2, p: 252.

[1] Wolf, Eric. R., Pathways of Power: Building an Anthropology of the Modern World, Chapter: The Social Organization of Mecca and the Origins of Islam, (London: University of California Press, 2001), p: 104

[1]Al-Baghdadi, Muhammad bin Habib (245H), AL-Munammaq fi Akhbar al-Quraish, (Berut: ‘Alam al-Kutub, 1985), P: 46.

[1] Muhammad bin Ishaq (151H), Sirat Ibn e Ishaq, (Berut: Dar e Fikr, 1978), Vol:1, p: 81

[1] Ibn-e-S’ad (203H), Al-Tabqat Al-Kubra, (Bairut: Dar ak-kutub al-Ilmiyah, 1990), Vol: 1, p: 104.

[1] Kandhulvi, Muhammad Idrees, Seerat e Mustafa, (Karachi: Mazhari Kutub khana, New addition), Vol: 1, p: 97.

[1] Nadvi, Abul Hasan, Al-Seerah Al-Nabviyyah, (Damascus: Dar Ibn e Kaseer, 1425H), Vol: 1, p: 139.

[1]Abu Shuhbah, Muhammad (1403H), Al-Seerah al-Nabviyyah ala Zau-e-Quran wa Sunnah, , (Damascus: Dar al-Qalam, 1427H), Vol: 1, p: 101-02

[1] Al-Baghdadi, Al-Munammaq fi Akhbar al-Quraish, P: 202-208.

[1] Malik, Ibn Anas (179H), Al-Mu’atta, (Berut: Dar Ihya al-Turas, 1985), Vol: 2, p: 788.

[1] Ibn  Qutaibah (276H), Al-Ma’arif, (Cairo: Al-Hai’at al-Misriyya, 1992), p: 576

[1] Al-Tibrani, Sulyman bin Ahmad (360H), Al-Mu’jam Al-Kabir, (Cairo: Maktaba Ibn e Taymia), Hadith No. 11747, Vol: 11, p: 284.

[1] Al-Khazin, Ali bin Muhammad (741H),  Tafseer Al-Khazin, (Berut: Dar al-kutub al-ilmiyyah, 1415H), Vol: 1, p:211

[1]Al-Nishaburi, ‘Ali bin Ahmad (468H), Asbab al-Nuzul, (Berut: Dar alkutub al-ilmiyyah, 1411H), p: 93

[1]Al-Jassas, Abubakar (370H), Ahkam Al-Quran, (Berut: Dar Kutub al-‘ilmiyyah, 1994), Vol: 1, p: 563.

[1] Zuhaili, Dr. Wahbah, Al-Fiqh al-Islami WA Adillatuhu, (Berut: Dar Al-Fikr), Vol: 4, p: 670.

[1] Al-Mu’atta, Vol: 2, p: 672.

[1] Al-Baghvi (510H), Tafseer Al-Baghvi, (Riyaz: Dar-e-Taybah, 1997), Vol: 1, p: 344.

[1] Tabri، Ibn-e- Jarir (310H), Tafseer al-Tabri, (Berut: Mu’assasah al-Risalah, 2000), Vol: 7, p: 204

[1] Al-Razi, Fakhr-ul-Din (606H), Al-Tafseer Al-Kabeer, (Berut: Dar Ihya al-Turas, 1420H), Vol: 7, p: 72.

[1] Tafseer al-Tabri, Vol: 5, p: 50

[1] Ibn-e-S’ad (230H), Al-Tabqat al-Kubra,(Berut: Dar al-Kutub al-‘ilmiyyah, 1408H), Vol: 2, p: 8.

[1]‘Asqalani, Ibn e Hajar (852H), Fath-ul-Bari Sharh Sahih Bukhari,(Berut: Dar al-m’arfah, 1959), Vol: 6, p: 230

[1]Al-Khazin, ‘Alaudin Ali bin Muhammad (741H), Tafseer Al-Khazin, a,(Berut: Dar al-Kutub al-‘ilmiyyah, 1415H), Vol: 1, p: 211.

[1] Siqayah and rifadah means watering and feeding the pilgrims respectively.

[1] Al-Balazri, Ahmad bin Yahya (279H), Ansab ul Ashraf, (Berut: Dar al-Fikr, 1996), Vol: 1, P: 57.

[1] ‘Asqalani, Fath-ul-Bari Sharh Sahih Bukhari, Vol: 4, p: 418

[1] Al-Baghdadi, Al-Munammaq fi Akhbar al-Quraish, P: 58.

[1] Warner, Frank M., and Stoner, James A.F., Modern Financial Managing; Continuity and Change, (USA: Freeload Press, 2007), 3^rd Edition, p: 11

[1] Iannaccone, Laurence R. and Berman, Eli (2006), Religious extremism: the good, the bad, and the deadly, 128 (1), p 110

[1] Khan, What Is Wrong with Islamic Economics, p: 158

[1]Highlights of the Global Slavery Index-2014, p: 02. (https://d3mj66ag90b5fy.cloudfront.net/wp-content/uploads/2014/11/Global_Slavery_Index_2014_final_lowres.pdf)

[1] The Economic Foundations of Contemporary Slavery, By Justin Guay, Topical Research Digest, P. 73. (It was retrieved at Oct. 5, 2015 from : www.du.edu/korbel/hrhw/researchdigest/slavery/economic.pdf)

[1] The express tribune e-paper: http://tribune.com.pk/story/978092/saudi-arabia-may-run-out-of-financial-assets-in-5-years-warns-imf/

[1] THE ECONOMIST (Aug, 2014), why the price of commercial sex is falling, this article is retrieved from official website of The Economist at Oct. 5, 2015: http://www.economist.com/blogs/economist-explains/2014/08/economist-explains-7

[1]The Organization for Economic Cooperation and Development (OECD) is a group of 30 member countries that discuss and develop economic and social policy. OECD countries are democratic countries that support free market economies.

[1]Keeley,B.(2015),Income Inequality: The Gap between Rich and Poor, OECD Insights, OECD Publishing, Paris, p: 10-11

[1]Joaquim Moreira Salles, The Wealth Gap between Rich and Poor Is the Widest Ever Recorded, Retrieved from: http://thinkprogress.org/economy/2014/12/18/3605137/us-wealth-gap-at-its-widest-in-decades/

[1] Retrieved from http://list25.com/25-countries-with-the-highest-suicide-rates-in-the-world/

[1] Craig Dilworth, Too smart for our own good the ecological predicament of mankind, (UK: Cambridge University Press, 2009), p: 438.

[1]Bharadwaj, Ashish (2014), Is poverty the mother of crime? Empirical evidence of the impact of socioeconomic factors on crime in India, Atlantic Review of Economics – 1st Volume – 2014.

[1] N. Barou, Co-operative Insurance, (London: P. S. King & son, limited), 2007, p: 43.

[1]Dr. Gerda Reith, Research on the Social Impacts of Gambling: Final Report, Scottish Executive Social Research, 2006, p: 42.

[1]Lorenz, V.C. and Yaffe, R.A. (1988), Pathological gambling: psychosomatic, emotional and marital difficulties as reported by the spouse, Journal of Gambling Behavior, 5 (4), p: 13-26.

[1]Jacobs D.R., Marston, A.R., Singer, R.D., Widaman, K., Little, T. and Veizades, J. (1989), Children of problem gamblers, Journal of Gambling Behavior, 5 (4), p: 261-267.

[1] Lauren Kirchner (JUL 29, 2014), The Elusive Link Between Casinos and Crime, Article was Retrieved from: http://www.psmag.com/health-and-behavior/elusive-link-casinos-crime-86902

[1] Dwivedi, D.N., Macroeconomics: Theory and Police, (Delhi: Tata McGraw Hill, 2010), 3^rd Ed., p: 4. 

[1] Hanbal, Imam Ahmad (241H), Musnad Ahmad, (Berut: Mu’assasah al-Risalah, 2001), Hadith No. 23489

[1] Sahih Bukhari, Hadith No. 30, Vol: 1, p: 15

[1] Ibid, Hadith No. 2072, Vol: 3, p: 57

[1] Al-Quran, Al-Mominoon:51

[1] Al-Quran, Al-Baqarah:172

[1] Al-Muslim, Imam Abul Hussain (261H), Sahih Muslim, (Berut: Dar al-ihya al-turath al-Arabi), Vol: 2, p: 703.

[1] Al-Baqarah: 278-79

[1] Sahih Muslim, Hadith no. 1598, Vol: 3, p: 1219

[1] Ibid, Hadith no. 1218, Vol: 2, p: 886

[1] Al-Quran, Al-Baqarah:275

[1] Ibid: 245

[1] Al-Quran, Al-Nisa:29

[1] Al-Quran, Al-Baqarah: 225, Al-Quran, Al-Ma’ida: 95, Sahih Bukhari, Hadith No. 2087, Vol: 3, p: 60, Sahih Muslim, Hadith no. 1607, Vol: 3, p: 1228

[1] Al-Quran, Al-Mutaffifeen:1-3, Al-Quran, Al-Asra:35

[1] Sahih Bukhari, Hadith No. 6963, Vol: 9, p: 24

[1] Ibid, Hadith No. 2142, Vol: 3, p: 69

[1] Musnad Ahmad, Hadith no. 16013

[1] Sahih Muslim, Hadith no. 101, Vol:1, p: 99,  and Hadith no. 1524, Vol:3, p: 1159

[1] Abu Da’ud, Sulaiman bin Al-Ash’asth (275H), Sunan Abi Da’ud, (Berut: Al-Maktaba Al-Asriya), Hadith No. 3376, Vol: 3, p: 254

[1] Al-Tirimzi, Muhammad bin Esa (279H), Sunan Al-Tirimzi, (Berut: Mustafa al-Babi al-halbi, 1975), hadith no. 1209, Vol: 3, p: 507

[1] Al-Quran, Al-Ma’idah:38

[1] Al-Quran, Al-Noor:33

[1] Razi, Imam Fakhrudin (606H), Tafseer Al-Kabeer, (Berut: Dar al-ihya al-turath al-Arabi), Al-Noor: 33

[1]Al-Quran, Al-Ma’idah:3, According to Abdullah ibn `Abbas, the Azlam were arrows that they used to seek good luck or bad luck. (Tafseer Al-Kabeer, Al-Quran, Al-Ma’idah:3)

[1] Al-Quran, Al-Baqarah:219

[1] Al-Quran, Al-Mu’atta, Hadith no. 2595, Vol: 4, p: 1016.

[1] Sahih Muslim, Hadith no. 1605, Vol:3, p: 1227

[1] Ibid, Hadith no. 1519, p: 1157

[1] Ibid, Hadith no. 1594, p: 1215

[1] Ibid: Hadith no. 1595

[1]Spratt, Dr. Stephen (2006), A Sterling Solution: Implementing a stamp duty on sterling to finance international development, Stamp out Poverty report, p. 15.

[1] Al-Baghvi, Tafseer Al-Baghvi, Vol: 1, p: 344.

[1] Ibn-e-S’ad (203H), Al-Tabqat Al-Kubra, (Bairut: Dar ak-kutub al-Ilmiyah, 1990), Vol: 5, p: 298.

[1] The necessity means that it is essential for the welfare of both the religion and this world in a way that man would lose his stability and welfare of this world would not be obtained, but with anarchy, disorder and death, and there will be an obvious loss in hereafter regarding success, blessings and departure in hereafter in the absence of necessity”( Al-Shatibi, Shaikh Abu Ishaq (790H),”Al-Muafaqat, (KSA: Dar Ibn ‘Affan, 1997), Vol: 2, P: 17)

[1] The bay‘bi thaman ajil is an agreement whereby the bank sells a property to the customer permitting the customer to pay the sale price on deferred basis and normally by periodic installments.

[1] Under Islamic Pawn Broking concept the borrower is asked to provide collateral in the form of gold or silver to ensure repayment of the loan. This collateral acts as an instrument of guarantee that the loan will be repaid at the maturity of agreement. If the borrowed sum is not repaid at maturity then the lender has the right to sell the collateral to recover the loan. The lender charges the borrower for safekeeping of his collateral asset. (Hisham, Shukor, Salwa & Jusoff (2013), The concept and challenges of Islamic pawn broking, Middle-East Journal of Scientific Research 13, p:98-102)

[1]Abuzaid, Dr. Abdulazim and Dusuki, Dr. Asyraf Wajdi (2007)," The Challenges of Realizing Maqasid al-Shari’ah  in Islamic Banking and Finance", A Paper presented at the IIUM International Conference on Islamic Banking and Finance organized by IIUM Institute of Islamic Banking and Finance, p:21.

[1]Interview: Special column with adjunct professor of fem: datoy majid mohamad, Muamlat ,the newsletter of the faculty of Economics and Muamlat, University SAINS Islam Malaysia, 10(1),p: 12