9. ISLAMIC ECONOMIC SYSTEM Islamic economy is an economic system different from the capitalist economic system and the socialist economic system. Islamic economy is an economy conducted according to Islamic law with the aim of balancing the physical and spiritual well-being of Muslims. Islam is a religion that calls on its followers to dominate and develop the world and make it prosperous for the benefit of the people themselves, but must follow the rules that have been set. The word of Allah SWT which means “He created you from the earth (earth) and made you prosper” (Surah Hud: 61). Rasulullah SAW himself established the government in Medina Al-Munawwarah which covers economic aspects such as holding muamalat markets in Islam. This world is a farm for supplies in the afterlife and this world although it is very short compared to the life in the afterlife, but. it is important because it contains tasks, attempts, tests and practices that we must carry out and accomplish. The world is a place of charity and non-reckoning, while the afterlife is a day of calculation and not charity (al-Qardawi, 1999: 226). Islamic economics is closely linked to morality and is based on the principle of justice. The principle of Islamic justice prevents the accumulation of wealth that harms certain classes or groups in society and prevents the misuse of capital and income (Seyyed Hossein Nasr, 1994: 67). DEFINITION OF ISLAMIC ECONOMY According to Kamus Dewan, economics is the science related to the production, distribution, management of goods and services. Economy also means the wealth management system of a country. This includes finance, industry, commerce and others. However economics is defined... middle of paper ... it is an invalid contract because it contains elements of gharar (uncertainty), riba and maisir (gambling) as early as June 1972. As as such, Accordingly, a body responsible for the establishment of an Islamic insurance company in Malaysia was established. The Takaful Act was implemented in 1984 following the recommendations of this task force and the first takaful operator was incorporated in Malaysia in November 1984. http://www.takaful-ikhlas.com.my/malay/gui/pdf/ operasi_takaful_di_malaysia.pdf REFERENCE1 )http://ulamak.pas.org.my/v2/index.php?option=com_content&view=article&id=146:pengenalan-ekonomi-islam&catid=44:iqtisad-a-muamalat&Itemid=852) http:/ /pengajianislam. pressbooks .com/chapter/konsep-asas-ekonomi-islam/3) http://www.referensimakalah.com/2013/04/pengertian-ekonomi-islam-menurut-pakar.html4) http://duniaislamnet.wordpress. com / islamic-economy/275-2/