Price And Market Mechanisms In The Perspective Of Islamic Economics: A Review Of The Concepts Of Ihtikar (Hoarding) And Gharar

Abstract

The market and pricing mechanisms are fundamental pillars of microeconomics. However, conventional market mechanisms are often vulnerable to detrimental practices, such as hoarding and excessive speculation, which threaten social justice and price stability. This library research aims to analyze how Islamic Economics regulates pricing and market mechanisms by incorporating moral and Sharia dimensions as key variables, specifically through the prohibition of Ihtikar and Gharar. The analysis reveals that Islam recognizes market freedom and the natural determination of prices based on fair supply and demand. Nevertheless, this freedom is constrained by Islamic business ethics to prevent exploitation and injustice. The prohibition of Ihtikar (hoarding essential goods to seek unfair profit) aims to maintain commodity availability and price stability, a principle strongly supported by Hadith that condemns the act. Meanwhile, the prohibition of Gharar (excessive uncertainty or ambiguity in transactions) functions to protect consumers from deception and prevent speculation resembling gambling, in line with the Qur'anic mandate for justice in weights and measures. Overall, these Sharia regulations in Islamic microeconomics ensure that the market serves as a means to achieve well-being (falah) and justice (qisth) for the entire community