How the khilafah will engage with the global economy ?

a. SELF SUFFICIENCY

The government will maintain a favourable international trading stance by encouraging domestic industry and agriculture particularly in strategic goods such as food, cotton etc. An approach will be taken which eliminates critical dependency on international trade for the state whilst allowing it to flourish.

There will be no unilateral imposition of tariff controls, however the government reserves the Shari'ah right to impose reciprocal border tariffs for foreign traders based on treaty.

The Shari'ah dictates that domestic companies engaging internationally should be unimpeded by regulation and export taxes.

Clearly the movement of prohibited goods into the country will be blocked. As will the movement of goods out of the country that could assist the enemies of the Islamic State such as certain weaponry or oil to an enemy with which there is an active war.

b. AN INTEGRATED ECONOMY

The Shari'ah recognises that the unification of Muslim lands one by one produces economies of scale, which should be a political target. For example Egyptian labour, coupled with Sudanese agricultural wealth coupled with Libyan energy resources ‐ these combine to form the makings of a regional and then global power.

c. LEVERAGING RAW MATERIALS, LAND & LABOUR

The government will leverage the concentration of agricultural, mineral and energy resources in Muslim lands to extract favourable international trading terms that secure strategic objectives.

d. IMPACT OF INTERNATIONAL CURRENCY EXCHANGE

The state will move to a fully gold/silver backed currency along with eliminating any interest based
debt obligations, thus:

Preventing predatory currency speculation and financial market volatility

Promoting domestic price stability

This will in turn facilitate international trade and create a stable domestic investment environment. Government bonds at interest will of course no longer exist nor will the markets in shares of limited liability companies thus further insulating against international markets.