Market Analysis from an Islamic Perspective and the Contribution of Muslim Scholars Abdus Samad, Ph.D 1 Abstract The first part of this paper examines the concept of market from an Islamic angle in which market is not a value-free concept of exchanging goods and services between two parties (buyers and sellers). Rather, market is an institution or channel for achieving greater welfare in the world (called Dinia) and the world-hereafter (called Akhira) 2 . Welfare in Islam is a function of maximizing production and consumption of Shariah permitted goods and services. Market is an embodiment of ensuring “falah” – greater well being of mankind. The second part of this paper examines the contribution of the early Muslim scholars in the development of the “market” concept and finds that the Muslim scholars made a significant contribution in explaining the fluctuation of market price centuries ahead of Western economists. 1. Introduction Islam is a complete way-of-life package for guidance to the believers, including economic, social, and political dimensions. In Islam, there is no separation of transactions for achieving success in this world and the world here-after. All transactions whether they are economic, political, or social are integrated into ensuring greater welfare (called Falah) of mankind and are an integral part of God’s unity. The “ordinary business of life” (from Marshall’s point of view) is not separated from religious transactions. Rather life business is an integral part of God’s worship. The concept of worship in Islam is very wide and is not confined to five compulsory prayers. All activities and transactions—production consumption, and exchange—are considered worship 3 , as long as they are performed in the way God permits. Human beings were created to implement God’s vision on this earth through their behavior and transactions supported by the economic, social, and political institutions or organizations. Therefore, a socio-economic institution or organization, such as market, that ensures or increases the welfare of mankind is not an alien concept in Islam. 1 Department of Finance and Economics, Utah Valley University, 800 W University PKY, Orem, Utah 84058, Email: abdus.samad@uvu.edu 2 In Islam, the achievement of success means the ultimate achievement of paradise (Jannah) through the right deeds of this world. 3 God said “ I have created men and Jins to worship to Me” Quran