Short answer
Islamic economics is a set of rules and values for earning, owning and spending wealth. It protects private property and free trade, forbids riba (interest), gambling, excessive uncertainty and fraud, requires zakat, spreads wealth through inheritance, and treats all wealth as a trust from Allah.
The Hanafi school, like the others, does not set out a separate economic theory; it supplies detailed law for contracts, ownership, partnerships, zakat and public revenue. Its jurists, from Imam Muhammad's books on trade to Abu Yusuf's book on state revenue, wrote much of the classical law of the market.
The four schools agree on this.
Explanation
The core principles, which all four schools share:
- Wealth belongs to Allah. People hold it as trustees, and will be asked how they earned and spent it (57:7).
- Private property and markets are respected. Theft and seizure are crimes, and prices are normally left to the market: the Prophet ﷺ declined to fix prices in Madinah.
- Riba is forbidden. Money may not earn money just for time. Return must come from trade, rent or a share in real risk. See Why is interest haram?
- Gambling and gharar are forbidden. Contracts must be clear about what each side gives and gets. See What is gharar?
- Honesty in trade. No fraud, hidden defects, false weights or hoarding of necessities.
- Zakat and charity. A fixed share of savings goes every year to the poor and others named in the Quran. See the zakat calculator.
- Inheritance spreads wealth among many relatives by fixed shares, instead of keeping it in one hand.
- Some resources are shared. "Muslims are partners in three: water, pasture and fire" (Abu Dawud).
The aim is stated in 59:7: wealth should not circulate only among the rich. Islam does not ban wealth or profit, and it does not abolish private ownership. It shapes how wealth is earned and makes sure the needy have a real right in it (51:19).
Modern Islamic finance tries to apply these rules through partnership (musharakah, mudarabah), sale (murabaha) and leasing (ijarah) in place of interest. See also What are the rules of business in Islam?
The evidence
Quran, Surah Al-Hashr 59:7
مَّآ أَفَآءَ ٱللَّهُ عَلَىٰ رَسُولِهِۦ مِنْ أَهْلِ ٱلْقُرَىٰ فَلِلَّهِ وَلِلرَّسُولِ وَلِذِى ٱلْقُرْبَىٰ وَٱلْيَتَٰمَىٰ وَٱلْمَسَٰكِينِ وَٱبْنِ ٱلسَّبِيلِ كَىْ لَا يَكُونَ دُولَةًۢ بَيْنَ ٱلْأَغْنِيَآءِ مِنكُمْ ۚ وَمَآ ءَاتَىٰكُمُ ٱلرَّسُولُ فَخُذُوهُ وَمَا نَهَىٰكُمْ عَنْهُ فَٱنتَهُوا۟ ۚ وَٱتَّقُوا۟ ٱللَّهَ ۖ إِنَّ ٱللَّهَ شَدِيدُ ٱلْعِقَابِ ﴿٧﴾
And what Allah restored to His Messenger from the people of the towns - it is for Allah and for the Messenger and for [his] near relatives and orphans and the [stranded] traveler - so that it will not be a perpetual distribution among the rich from among you. And whatever the Messenger has given you - take; and what he has forbidden you - refrain from. And fear Allah; indeed, Allah is severe in penalty.
Wealth should circulate through the whole society.
Quran, Surah Al-Hadid 57:7
ءَامِنُوا۟ بِٱللَّهِ وَرَسُولِهِۦ وَأَنفِقُوا۟ مِمَّا جَعَلَكُم مُّسْتَخْلَفِينَ فِيهِ ۖ فَٱلَّذِينَ ءَامَنُوا۟ مِنكُمْ وَأَنفَقُوا۟ لَهُمْ أَجْرٌۭ كَبِيرٌۭ ﴿٧﴾
Believe in Allah and His Messenger and spend out of that in which He has made you successors. For those who have believed among you and spent, there will be a great reward.
People hold wealth as trustees of Allah.
Quran, Surah Al-Baqara 2:275
ٱلَّذِينَ يَأْكُلُونَ ٱلرِّبَوٰا۟ لَا يَقُومُونَ إِلَّا كَمَا يَقُومُ ٱلَّذِى يَتَخَبَّطُهُ ٱلشَّيْطَٰنُ مِنَ ٱلْمَسِّ ۚ ذَٰلِكَ بِأَنَّهُمْ قَالُوٓا۟ إِنَّمَا ٱلْبَيْعُ مِثْلُ ٱلرِّبَوٰا۟ ۗ وَأَحَلَّ ٱللَّهُ ٱلْبَيْعَ وَحَرَّمَ ٱلرِّبَوٰا۟ ۚ فَمَن جَآءَهُۥ مَوْعِظَةٌۭ مِّن رَّبِّهِۦ فَٱنتَهَىٰ فَلَهُۥ مَا سَلَفَ وَأَمْرُهُۥٓ إِلَى ٱللَّهِ ۖ وَمَنْ عَادَ فَأُو۟لَٰٓئِكَ أَصْحَٰبُ ٱلنَّارِ ۖ هُمْ فِيهَا خَٰلِدُونَ ﴿٢٧٥﴾
Those who consume interest cannot stand [on the Day of Resurrection] except as one stands who is being beaten by Satan into insanity. That is because they say, "Trade is [just] like interest." But Allah has permitted trade and has forbidden interest. So whoever has received an admonition from his Lord and desists may have what is past, and his affair rests with Allah. But whoever returns to [dealing in interest or usury] - those are the companions of the Fire; they will abide eternally therein.
Trade is the lawful way to grow wealth; interest is not.
Sunan Abi Dawud 3477
Grading to be checked... المسلمون شركاء في ثلاث في الكلإ والماء والنار ...
"Muslims are partners in three things: pasture, water and fire."
Some basic resources are shared by all.
Where the ruling is recorded
- Kitab al-Kharaj (Imam Abu Yusuf), Introduction and sections on public revenue. Early Hanafi account of the state's revenues and duties.
- Mufti Taqi Usmani, An Introduction to Islamic Finance, Opening chapters on the Islamic economic framework. How the prohibition of interest shapes the economy.
Checked by our team. For a more accurate answer to your own situation, consult a scholar. Quran translation by Sahih International. Hadith Arabic from the standard editions of the six books and the Muwatta, with gradings as recorded there; the English is our own rendering. Spotted a mistake? Tell us.