The truth is that there is no Islamic economic system or theory. We have seen others develop economic theories; Capitalism, Marxism, Socialism, Communism, etc, etc; so we think we have to have our own alternative model; but we don’t. As with government, there is no Islamic system; there are certain rules that should be applied, and certain, really common sense values that need to be followed; that’s all. The state retains the right to intervene in the private economy whenever necessary to ensure a basic standard of fairness, to prevent unrestrained greed, to protect the people against dire poverty, and to preserve the general welfare, and that is about the extent of it.
We need to stop pretending that Islam presents a defined model of societal management in every area of life; it doesn’t. It provides a handful of specific rules and regulations, yes, but, more than anything else, it provides guidance and flexibility which makes it highly adaptable to changing circumstances.