Islamic Economics in Hegemony of Capitalism and Socialism: A Study of Comparative Analysis

Abstract

This study explores how the hegemony of the Socialist economic and the Capitalist economic system towards the Islamic economy and the biggest challenge of the Islamic economy. This type of research is a qualitative research method by applying literature studies. Islam and Capitalism also socialism are influence each other. Sociologically, Islam is present in a capitalist or socialist society, both of which have ties. In the history, Capitalism and socialism had existed before Islam came. Before the birth of Islam, Mecca had been a center of international trade and finance. Prophet Muhammad himself was a trader before becoming a prophet. Thus, Capitalism and socialism are an ideology or system that comes from outside and enters the school of economic thought that influences Islamic economics. However, Islam also influences and corrects economic life or Capitalism and also socialism applies. Therefore Islam and Capitalism also socialism are forces that interact.