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Islamic Careers
Islamic Careers

Islamic Economics in Medina Period

Medina period begins from the impact of the Prophet Muhammad PEACE BE UPON HIM along with his followers into the land of Yastrib (Medina). At that time the Prophet Muhammad and his companions-the muhajirun migrated to Medina in 622-munawwarah. After done agreement and the agreement with those Anshor (al-aus and al-kharaj) for protect and defend his religion, Medina became a fortress and a tough defense Center of Islam as well as a torch that emits light to various Islamic and from there spread wide to over the world.

In Medina, Prophet Muhammad was appointed head of State as well as a religious leader by the people of Medina (Muhammad, 2007: 11). As head of State, certainly he makes various policies to its community. Among these policies is; build the mosque, make laws, bringing together the muhajirun and anshor, establishing peace in the country, put together a system of Defense of the country, and founded the baitul mal (Muhammad, 2007: 11)

About activities as an entrepreneur or colloquially known as the merchant, in Medina was the Islamic prophet Muhammad, better known as an active market watchdog until the end of his life (Antonio, 2003: 268). The market watchdog was carried out by the Islamic prophet Muhammad with aside from the heads of State and head of the religion. So, since both terms that he prefers as the supervisor of the market. As the market watchdog, the Islamic prophet Muhammad was keeping an eye on the course of market mechanisms in Medina and surrounding areas in order to still be able to be lasting in Islamic (Antonio, 2003: 269)

Next on economic policy, the Islamic prophet Muhammad strongly forbids everything that gives rise to usury. Because many detrimental side of usury from buyers at seller. In addition it's also about wealth, Prophet Muhammad stressed that wealth should not be hoarded, since if the rotation of the treasures hoarded discontinued (Muhammad, 2007: 12)

While serving as head of State, baitul mal is one of the programmers of the Islamic prophet Muhammad. Therefore the use of the baitul mal as the State Treasury is featured. The baitul mal's income and expenditure of State activity takes place. Some form of revenue State at that time was the kharaj (land tax), zakat, khums (proportional taxes), Jizya (taxation guarantee for non-Muslims) and acceptance of others such as kafarat and property of the beneficiary (Muhammad, 2007: 13) as regards expenditure, then between State funds used to spread the religion of Islam, defense and security, infrastructure development, the development of science and culture, as well as providing facilities for social welfare (Muhammad, 2007: 14)

Of economic activities, especially trade which takes place in the Medina, close the sale less the amount of the purchase transaction (1997: afzalurrahman, 12), it is proven that the Prophet Muhammad during his lifetime many do loaning. However, he remained AS-sidiq and al-' amin because when he borrow something to others, he always pay more (afzalurrahman, 1997: 15) Furthermore although personally Prophet Muhammad more indebted even mortgaged his goods (armor), is not the case if viewed from the perspective of the head of State. As head of State, so that the economy is growing, medina Islamic prophet Muhammad brought out two policies in the economic, fiscal policy and monetary policy (Muhammad, 2007: 3). Monetary policy of the Islamic prophet Muhammad was issued establishing a valid currency and make money as a means of transaction, whereas fiscal policy (Muhammad, 2007: 3) is to increase national income and the level of participation, tax policy, working to make the budget such as the State budget, fiscal policy and specific (requesting assistance to rich Muslim in voluntarily).

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