Why Are Laws Made and Why Should They Be Derived from the Qur’an & Sunnah?

By Muhammad Rizwan-ul Haque

Founding Chairman, Dawood Family Takaful | CEO of an Investment Bank | Director of a Trust

Originally published: August 12, 2015

Introduction

The concept of lawmaking dates back thousands of years to ancient Greek aristocracies. However, these early laws largely served the interests of the elite, leaving the lower classes marginalized. As a result, ethics, morals, and values became tools through which the oppressed sought justice and demanded their rights.

Why Are Laws Necessary?

Laws are essential to regulate human behavior. In the absence of rules and regulations, it would be impossible for a ruler to govern a state, a CEO to manage an organization, or even a head of a household to maintain order. Laws provide structure, discipline, and accountability at every level of society.

The Primary Lesson of Islam: Equality and Justice

Islam establishes an exceptionally high standard of equality and justice. This principle is clearly reflected in the teachings of the Qur’an and Sunnah.

Equality: In the Farewell Sermon delivered on the 9th of Dhul-Hijjah, 10 A.H., Prophet Muhammad ﷺ declared:

“All mankind is from Adam and Eve. An Arab has no superiority over a non-Arab, nor does a non-Arab have superiority over an Arab. A white has no superiority over a black, nor a black over a white; except by piety and good deeds.”

Justice: When a woman from the Makhzum tribe committed theft, and intercession was sought, the Prophet ﷺ rejected any favoritism and stated:

“The nations before you were destroyed because they used to spare the influential when they committed crimes and punish the weak. By Allah, if Fatima, the daughter of Muhammad, were to steal, I would cut off her hand.”

This establishes that justice in Islam applies equally to all, regardless of status or lineage.

Rules and Guidelines: A Divine Necessity

Just as every machine requires a manual, humanity requires guidance. Along with human creation, Allah (SWT) sent divine guidance through the Qur’an, and Prophet Muhammad ﷺ left behind his Sunnah. These two sources provide not only moral direction but also clear rules, boundaries, and obligations.

A society must be built upon equality and justice. Without these foundations, socioeconomic injustice emerges, giving rise to social evils that are visible across the world today.

Absolute Power Corrupts Absolutely

History repeatedly shows that when individuals or groups accumulate unchecked power, they tend to create laws that serve their own interests while ignoring justice. Such power can legitimize inhumane practices under the guise of legality. Past examples, such as racial segregation laws, remind us that legality does not always equate to morality.

Interest (Riba) and Economic Imbalance

Modern economic systems permit interest-based transactions, allowing capital to carry a guaranteed price. Capitalists can leverage borrowed money, and governments rely on debt to finance deficits. These practices make it extremely difficult to achieve social harmony or address systemic issues such as inflation, poverty, unemployment, and low productivity.

Guidance from the Qur’an and Sunnah

Allah (SWT) has granted human beings free will; however, freedom without divine guidance often leads to exploitation. Those in authority may impose immoral or unnatural systems, but such freedom does not result in balanced or harmonious societies. True success, both worldly and spiritual, lies in aligning political, social, and economic systems with divine guidance.

Our Collective Responsibility

It is our responsibility to explore and implement the systems prescribed in the Qur’an and Hadith. Without doing so, humanity risks remaining misguided despite material progress. In business and economics, removing exploitation and ensuring equal opportunity are essential for societal balance, so that wealth does not remain concentrated among the powerful while the poor continue to multiply.

While welfare and charity play an important role, they cannot provide long-term solutions to socioeconomic injustice. Sustainable change requires systemic reform, particularly the elimination of interest and the promotion of real economic activity. When all members of society become stakeholders rather than debtors, equality and justice can truly prevail.

Conclusion

A just and harmonious society cannot be achieved through man-made laws alone. Only systems grounded in the Qur’an and Sunnah can ensure lasting equality, justice, and economic balance—principles that benefit not just individuals, but humanity as a whole.