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Research

Marxist political economy and Islamic economics: Developing the theoretical foundation of Islamic economics and finance

Application summary

Islamic economics is a philosophy of economics founded on the principles of Islam. Emerging from the principles of morality, sustainability, justice and equity; it is quite contradictory to neoliberal capitalism. Usually compared to the ‘Third Way’ or Keynesianism in economics, it has never been analysed in a Marxist context. This doctoral research project aims to study Islamic economics within a Marxist political economy framework to (a) introduce a non-Eurocentric economic philosophy into critical political economy; (b) to introduce a new analytical approach to the study of Islamic economics. Beyond the Marxist framework, the research methodology includes conducting interviews with professionals in Islamic banking, and academics in both Islamic economics and Marxism. Utilising the case studies of banking practices and Islamic economic policies in UAE, Malaysia and Pakistan, this project will harmonise theoretical knowledge and financial practice. The main research problems to be studied are: interest rates relative to class relations, the concept of exploitation in Islamic economics vis a vis the Marxist interpretation of it, and the transformation of the so called ‘economic man’ to labour and its gendered dimensions. This is truly a unique approach for the analysis of Islamic economics. Even though Marxists form across the globe have been interested in Islamic economics, none have undertaken a study of this depth specifically in critical political economy. If granted funding, this research will break new ground for both Marxist political economy and Islamic economics and hopefully provide new perspectives on interest rates, labour rights, power struggles in developing countries and gender in Islamic economics.

This four-year doctoral research project critically re-evaluates Islamic economics, challenging its current limitations as a niche field often reduced to superficially "halal-washing" conventional financial practices. The project argues that this predicament stems from its reactive stance towards capitalism and an over-reliance on purely legalistic interpretations (fiqh), neglecting its rich ethical and philosophical traditions.
The core aim of this research has been to lay the theoretical foundations for a fundamental renewal of Islamic economics, establishing it as an independent, relevant economic system capable of offering genuine solutions to global challenges. This involves consciously delinking from Eurocentric philosophical dominance and recentering the discipline on its unique Islamic epistemologies, particularly Tawhid (the Oneness of God) as a unifying methodological principle.
Key areas of investigation included a critical re-theorization of fundamental economic concepts often overlooked or underdeveloped in mainstream discourse: the economic agent (with a strong emphasis on gender and power dynamics, drawing on Islamic feminism), the transformation of private property into power, and the concept of labour. By integrating insights from Islamic ethics, decolonial theory, and critical political economy, the project unveils embedded biases and proposes a more holistic understanding.
The research's main contribution is an interdisciplinary and decolonial framework for Islamic economic philosophy. It advocates for rigorous theoretical engagement and polyvalent methodologies, moving beyond narrow legalism to foster a more integrated, just, and sustainable understanding of economics. This project ultimately provides a robust intellectual foundation for developing economic thought that truly aligns with Islamic principles.

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