Jurisprudential and Economic Analysis of the Concept of Kanz

Kanz (treasure) is a key concept in islamic economics that is mainely introduced in verse 34 and 35 of surah Tawbah,. The concept has long been variously interpreted by Muslim exegetes, jurisprudents, and economists. This paper aims at reviewing the most important viewpoints about Kanz,presenting a unitary definition of the concept, and analyzing some of its economic functions and effects. The paper’s premise is that, the verse denotes a basic guideline for correcting the motives governing the economic conduct of individuals in accumulating wealth, proper circulation of money, and income allocation. This dictum condemns accumulative approaches to wealth that involve waste, lavishness, or disregard of social interests and of the needs of the poor. Islam intends that wealth and earnings be used for economic activities or in ways approved by God, such as use for current personal needs and social interests or investment for future personal and social interests. Other aims of this paper include analysis of the effects of Kanzon money demand, speculation on the financial market, savings and investment, and some macroeconomic phenomena.