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ISLAMIC CONSUMPTION THEORY – FAHIM KHAN
• CONSUMPTION EXPENDITURES FOR SELF AND FAMILY (E1)
• CONSUMPTION EXPENDITURE FOR OTHERS (E2)

ISLAMIC INVESTMENT THEORY
• ONLY PERMISSIBLE ACTIVITIES IS ALLOWED
• MASLAHAH UMMAH (DHARURIYYAT, HAJIYYAT, KAMALIYAT)
• HIGHLIGHT ON WELL BEING BESIDES PROFITABILITY
• IMPLEMENTATIONS SHOULD NOT AGAINST SHARI’AH
• EXCLUDE RIBA’

FACTORS INFLUENCING
CONSUMPTION

• EXPECTATION
• WEALTH
• PRICE LEVEL
• INTEREST RATE
• STOCK OF DURABLE GOODS
MUSLIM’S CONSUMER BEHAVIOUR

• BELIEF IN HEREAFTER LIFE
• AL-FALAH PRINCIPLE
• PRINCIPLE OF WEALTH
• PRINCIPLE OF CONSUMPTION GOODS AND SERVICES
• ETHICS OF CONSUMPTION
INVESTMENT

• PRICE AND PRODUCTIVITY OF CAPITAL GOODS
• EXPECTATIONS OF THE FUTURE
• INNOVATIONS
• PROFITS
• RATE OF INTEREST
• GOVERNMENT POLICIES
• RATE OF RETURN