(Series of Answers by the Eminent Scholar Ata Bin Khalil Abu al-Rashtah, Ameer of Hizb ut-Tahrir, to Questions from the Visitors of His Facebook Page "Fiqhi")
To Hamzeh Shihadeh
Question:
Assalamu Alaikum Wa Rahmatullahi Wa Barakatuh,
What is the difference between privatization in the capitalist system and Iqta’ (land granting) that was mentioned in the book Al-Amwal?
May Allah reward you with a thousandfold of good.
Answer:
Wa Alaikum Assalam Wa Rahmatullahi Wa Barakatuh,
Ownership is of three types: Public Ownership, State Ownership... and whatever is not Public Ownership or State Ownership falls under Private Ownership.
Public Ownership consists of assets for which the Legislator (ash-Shari') has assigned ownership to the collective body of Muslims, making them shared among them and prohibiting individuals from owning them. Examples include electricity generators, power stations, gas plants, coal... and perpetual minerals that are inexhaustible, whether they are solid like gold and iron, liquid like oil, or gaseous like natural gas... All of these and their like are Public Ownership owned by the collective body of Muslims and shared among them. They serve as a source of revenue for the Treasury (Bayt al-Mal) of the Muslims, and the Khalifah distributes them among the people according to the Shariah rules.
State Ownership consists of every asset—be it land, buildings, or movable property—to which the right of the general Muslims is attached, yet does not fall under Public Ownership. This includes land, buildings, and movable objects where the general right of Muslims is established according to Shariah rules. Consequently, their management, oversight, and disposal are entrusted to the Khalifah.
Although the State manages both Public Ownership and State Ownership, there is a difference between the two. Everything that falls under Public Ownership—such as oil, gas, perpetual minerals, seas, rivers, springs, public squares, forests, pastures, and mosques—cannot be granted by the Khalifah to anyone, whether an individual or a group, because it is the property of the general body of Muslims.
As for what falls under State Ownership—such as land and buildings—the Khalifah has the right to grant ownership of them to individuals, both in terms of the substance (raqabah) and the benefit, or the benefit without the substance. He may also allow the reclamation of dead land and its subsequent ownership, disposing of it as he sees fit for the welfare and benefit of the Muslims.
- It is permissible for the Khalifah to grant land from State Ownership to someone who has no agricultural land so that they may farm it and it becomes their property. This is done so that wealth does not remain confined only to the hands of the wealthy and circulate among them.
كَيْ لَا يَكُونَ دُولَةً بَيْنَ الْأَغْنِيَاءِ مِنْكُمْ
"So that it will not be a perpetual distribution among the rich from among you." (Surah Al-Hashr 59:7)
However, he must not seize Private Ownership from anyone without a legitimate right to give it to another. Rather, he gives from State Ownership to the poor instead of the rich, which is what is called Iqta’ (Land Granting).
Thus, Iqta’ is from the State's lands and not from Private Ownership, and naturally, not from Public Ownership.
These ownership categories are defined by the Shariah through Shariah rules; therefore, their classification cannot be changed. Public Ownership cannot be transferred to Private Ownership, such as giving the right to prospect for oil and extract it to a private company—this is what is called "privatization" (al-khaskhasah), which transforms Public Ownership into Private Ownership... Nor can Private Ownership be transferred to State Ownership, such as seizing a shop from its owner and making it State property—which is what is called "nationalization" (at-ta’mim).
From the above, the difference between privatization, nationalization, and Iqta’ becomes clear: Privatization is the sale of Public Ownership to private companies, such as giving concessions for oil exploration, mining, or electricity to private firms. This is Haram (prohibited) and not permissible because Public Ownership must remain Public Ownership and cannot become Private Ownership. Nationalization is the conversion of individual (Private) ownership into State Ownership or Public Ownership, such as converting a shop from individual ownership to public or state property. This is not permissible because ownership rights remain with their owners, and the right of ownership cannot be transferred to someone other than the owner...
As for Iqta’, it is the State giving from its own property to individuals to raise their economic level so that wealth does not remain concentrated in the hands of the rich. Many people do not possess what enables them to live with pride and dignity, so the State gives some who have no land to farm, and it even gives from its funds to farmers to help them cultivate their land.
Thus, Iqta’ in Islam, in its Shariah jurisprudential sense, differs from nationalization and differs from privatization.
Your brother, Ata Bin Khalil Abu al-Rashtah
03 Rabi' al-Akhir 1438 AH 01/01/2017 CE
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