Definition of Hoarding in the Islamic Economic System and the Capitalist System

Abstract

In the Islamic economic system, hoarding refers to purchasing goods and deliberately withholding them from the market so that their availability among people decreases, prices subsequently increase, and consumers suffer harm. From the perspective of Islamic law, hoarding is prohibited and considered an unlawful act in the sight of Allah, as it causes public harm, injustice, and the monopolization of goods that people need. Therefore, the Islamic authority may take necessary measures to prevent hoarding and protect people's rights, ensuring that this prohibited practice does not cause harm to society. Hoarding is considered an unlawful act, and its perpetrator may be subject to punishment.

From the perspective of the capitalist economic system, storing goods is not, in principle, inconsistent with private ownership and the principles of a free market. However, when an individual or company uses its market power to restrict supply, eliminate competition, establish a monopoly, and increase prices, such conduct may be considered unlawful under commercial and competition laws.

The purpose of this study is to clarify the position of the Islamic economic system and the capitalist economic system concerning hoarding. This study employs a library-based research method. The findings of the study indicate that hoarding is prohibited in Islam and is considered an unlawful act in the sight of Allah because it causes public harm, injustice, and the monopolization of goods necessary for people's needs. Accordingly, the perpetrator of hoarding may be subject to punishment.