Historical and ideology background has influenced the development of the economic system. Before the era of capitalism, the social system in Europe was dominated by feudalism. Feudalism works when the king divides a country into pieces of land and a landlord will take over the land. The king will impose a tax on the landlords and the landlords will pass the tax to the workers. In the feudal society, people at one level of society will receive land from the higher rank people to live and work on. In return, they have to work for them and give food that had produced to them.
However, in Islamic Economic system, the history of the economic system can be found in the
seerah during prophet time.Islamic Economic also based on the principle of
tawheed and shariah legal framework.
Reference : Dr.Mohd Nahar Mohd Arshad, A manual for foundation of Islamic economics basic Principles and illustrations.
