Page 41 - CMA Journal (Mar-Apr 2025)

Focus Section

Islamic Trade: Opportunities for Pakistan

Author: Co-Author

Abbas Raza Varayla Maria Shahab
Honorary Secretary Member, Management
Al-Sadiq Institute of Committee,
Islamic Banking, Al-Sadiq Institute of Islamic
Finance and Takaful Banking, Finance & Takaful

“The honest and trustworthy merchant will be with the prophets, the truthful and the martyrs” [Tirmidhi – 1209]

As global markets evolve, Islamic trade remains a beacon merchants, managing caravans that traveled between
of trust and integrity, offering an alternative model that Yemen in the south and Syria in the north. These journeys
seeks to align business practices with ethical and moral brought them in contact with different civilizations and
standards. Trade is like an oxygen for a country’s trading systems.
economy–essential and life sustaining. At its core, the
Trade played a pivotal role in the spread of Islam, as
exchange of goods and services—an age-old practice
Muslim merchants forged vast networks linking the
that began with bartering and has evolved into the
sophisticated global system we see today. It allows Middle East with Africa, Asia and Europe. These routes
individuals, businesses and nations to access what they facilitated not only the movement of goods but also the
need or want in exchange for what they produce exchange of cultural and religious ideas.
efficiently. International trade takes this concept across
The ethical conduct encouraged by Islamic
borders, becoming the engine of the global economy by
teachings—centered on honesty, fairness and lawful
enabling countries to specialize in their strengths while
transactions—left a lasting impression on the
accessing resources and products they lack domestically.
communities they engaged with. Muslim traders became
It’s a dynamic interplay of supply and demand, facilitated
known for their integrity, which earned them trust and
by complex logistics, financial instruments and
admiration, drawing many toward the faith.
regulatory frameworks. Picture it as a global marketplace
where Pakistani cotton finds its way into Italian fashion, Their deep involvement in local societies, coupled with
German cars cruise on Gulf roads and Brazilian coffee efforts to promote education and learning, helped
perks up mornings in Tokyo. Beyond goods, it’s also about establish Islamic values and practices across regions.
ideas, innovation and interdependence—making Through commerce, these merchants reshaped not just
international trade not just an economic activity, but a economies, but also the social and religious fabric of the
vital link connecting cultures, industries and nations in an
areas they touched. (explore-islam.com)
ever-evolving global narrative.
Even in the 7th century, trade was not just a local affair—it
Islamic trade is more than just a mode of commerce; it
was a regional and international enterprise. Makkah, where
reflects values rooted in centuries-old principles that
Prophet Muhammad ﷺ was born, was a major trading hub
continue to shape the global financial landscape today. In
strategically located on the caravan routes connecting
the era of the Prophet Muhammad ﷺ, trade was a
Yemen in the south with the Levant (modern-day Syria,
marketplace of ethics and trust.
Jordan, Palestine) and beyond in the north.
Trade Environment in Makkah and Madinah
In the time of Prophet Muhammad ﷺ, trade played a
During the Prophet’s time, Makkah was a central trade central role in economic life, but it came with high costs.
hub. The Quraysh tribe (the Prophet’s tribe) were famous
ICMA’s Chartered Management Accountant, Mar-Apr 2025 39