Public Ownership: People’s Wealth Forbidden to Be Privatized by Oligarchs
Dear readers, let us observe a very painful irony in the modern world. There is a country blessed by Allah ﷻ with the world’s highest gold mountains, abundant coal reserves, and oil wells gushing black gold endlessly. Logically, the people of that country should live prosperously without needing to go into debt.
Yet what happens? The people of that country must instead pay ever-suffocating electricity rates, buy LPG gas at high prices, and live in structural poverty. Why? Because those gold mountains, coal, and oil wells have been privatized (sold) to foreign corporations and a handful of local oligarchs in the name of “investment and free market” Capitalism.
Islam came to stop this injustice. Through tsaqofah drawn from the book Nizhamul Iqtishadi fil Islam (Islamic Economic System) by Sheikh Taqiyuddin an-Nabhani, we will dissect the second pillar of the Islamic economic system: Public Ownership (Milkiyah Ammah).
This is a very revolutionary and humane concept: the water you drink, the electricity that lights your home, and the fuel that drives your vehicle—all of these are truly the common right of all the people that is forbidden to be privatized. Let us explore this in depth.
1. Introduction: The Root of Natural Resource Privatization Injustice
Under the Capitalist ideology, everything on this earth may be owned by individuals or private companies. Forests, rivers, gold mines, even air (in the form of frequencies), are all considered commodities that can be bought and sold.
When vital natural resources are controlled by corporations, their only motive is one: Maximum Profit. Corporations will sell water, electricity, and fuel to the people at the highest possible prices. If the poor cannot afford to pay, their electricity will be cut off. Capitalism has transformed Allah’s ﷻ blessings into tools of oppression.
Islam has a diametrically opposite view. Islam recognizes that there are certain types of wealth whose nature and form are indeed intended for the livelihood of the masses. This type of wealth must not fall into individual hands, but must remain as common property.
2. Definition of Public Ownership (Milkiyah Ammah)
Sheikh Taqiyuddin an-Nabhani defines Public Ownership (Milkiyah Ammah) as:
إِذْنُ الشَّارِعِ لِلْجَمَاعَةِ بِالِاشْتِرَاكِ فِي الِانْتِفَاعِ بِالْعَيْنِ “Permission from Asy-Syari’ (Allah the Lawmaker) for a community (society) to jointly utilize a thing (wealth).”
From this definition, it is clear that Public Ownership is not government (state) property, nor is it individual property. It is the property of all the people. The State (Caliphate) acts only as a manager (representative) appointed by sharia to exploit that wealth and distribute its proceeds back to the people.
The primary foundation of this concept is the saying of the Messenger of Allah ﷺ:
الْمُسْلِمُونَ شُرَكَاءُ فِي ثَلَاثٍ: فِي الْمَاءِ وَالْكَلَإِ وَالنَّارِ
“Muslims are partners in three things: water, pasture, and fire (energy).” (HR. Abu Dawud no. 3477)
The word “partners” (syuraka’) means that every individual citizen has equal rights and shares in these three things.
Table 1: Differences in Ownership Status
| Aspect | Individual Ownership | Public Ownership | State Ownership |
|---|---|---|---|
| Legitimate Owner | Individual (Personal) | All the People | State (Baitul Mal) |
| Examples of Wealth | House, car, shoe factory | Gold mines, seas, petroleum | Fa’i, Kharaj, Jizyah wealth |
| Right to Sell | May be sold freely | Forbidden to sell (Privatize) | May be sold by the Caliph |
| Beneficiary | Private owner and their family | All citizens (free/cheap) | Financing state operations |
3. Three Categories of Public Ownership
Based on istriqra’ (examination of evidence) from the hadiths of the Messenger of Allah ﷺ, Sheikh Taqiyuddin an-Nabhani concluded that Public Ownership wealth is divided into three main categories:
Category 1: Public Facilities Essential for Livelihood
This includes anything that, if absent in a community, would cause that community to experience hardship or conflict.
- Examples: Water sources (rivers, lakes, springs), pasture (forests), and fire (energy sources such as coal, gas, and electricity).
- This type of wealth is forbidden to be privatized, both its sources and its distribution facilities (such as PAM water pipe networks or PLN electricity poles).
Category 2: Mineral Deposits That Are Abundant (Unlimited)
Minerals (ma’adin) are divided into two. If the amount is small (such as someone panning for gold in a river with a pan), then it may be owned by individuals. However, if the amount is very abundant (giant deposits), then it automatically becomes Public Ownership.
- Examples: Freeport gold mine, giant coal mines, offshore oil refineries, and nickel mines.
- Evidence: The story of the companion Abyadh bin Hammal (RA) who requested permission to manage a salt mine in Ma’rib. Initially the Messenger of Allah ﷺ permitted it. However, when a companion informed him that the salt mine was as abundant as “flowing water” (very plentiful), the Messenger of Allah ﷺ immediately revoked the permit and made it public property. (HR. Tirmidhi no. 1380).
Category 3: Objects Whose Nature Prevents Individual Monopoly
These are facilities that by their very nature must be used jointly because of their physical form.
- Examples: Highways, public bridges, large rivers, seas, straits, and city squares.
- This wealth is forbidden to be fenced off or claimed as private property.
4. Visual Analogy: The Village Dam Fenced by a Landlord
To distinguish the justice of Islam from the injustice of Capitalism, let us use the analogy of a dam in the middle of a village.
Capitalism Analogy (Privatization): In the middle of a dry village, there is a large dam full of fresh water. Suddenly a wealthy corporation arrives. It fences the dam, places armed guards, and claims it as company property. It then installs pipes to houses and puts meters on them. Residents who want to drink must pay high prices. If a poor resident cannot afford to pay, their pipe is cut off and they are left to die of thirst. The corporation shouts: “This is fair! This is the law of supply and demand!”
Islam Analogy (Public Ownership): Islamic sharia comes and tears down the corporate fence. Islam establishes that the dam belongs to all villagers. The Village Head (Caliph) is tasked with building a pipe network using state treasury funds, then channels that water freely (or at the cost of pipe maintenance only) to every house, whether the rich or the poor. Not a single resident goes thirsty.
This is the essence of Public Ownership. It ensures that Allah’s ﷻ vital blessings are not used as tools of exploitation by humans over other humans.
5. Strict Prohibition of Privatization
One of the greatest sins in modern economic policy is Privatization. Privatization is the transfer of ownership or management rights of Public Ownership wealth to individuals, private entities, or foreign corporations.
Examples of privatization in the real world:
- Selling oil wells or gold mines to multinational corporations (MNCs).
- Selling mountain spring water to bottled water companies.
- Handing over the management of toll roads (built on public land) to private entities for high fees.
In Islam, the privatization of Public Ownership is Absolutely Haram. The Caliphate may not give mining concessions to Chevron, Exxon, or local private companies. The state may not sell water sources to foreign bottled water companies.
The Messenger of Allah ﷺ gave a severe warning to those who monopolize water (a public resource):
مَنْ مَنَعَ فَضْلَ الْمَاءِ لِيَمْنَعَ بِهِ الْكَلَأَ مَنَعَهُ اللَّهُ فَضْلَهُ يَوْمَ الْقِيَامَةِ
“Whoever withholds surplus water (from others) in order to prevent pasture, Allah will withhold His bounty from him on the Day of Resurrection.” (HR. Bukhari no. 2353)
If a state leader (Caliph) privatizes a giant mine, then they have committed injustice and robbed their own people’s wealth.
6. Management Mechanism by the State (Caliphate)
If oil and gold mines may not be managed by the private sector, then who drills and extracts them? The answer is the State (Caliphate).
The state must establish state-owned enterprises (pure SOEs) to explore, exploit, and refine these natural resources. The state employs engineers, geologists, and laborers (with a professional Ijarah/wage system) to extract them. All operational costs (purchasing drilling machines, engineer salaries) are taken from the Baitul Mal treasury.
After oil, gold, or electricity is successfully produced, all proceeds are deposited into the Baitul Mal in the Public Ownership Fund. Wealth in this fund is forbidden to be mixed with State Ownership wealth (such as Fa’i or Kharaj).
Table 2: Giant Mine Management Mechanism
| Stage | Capitalism | Islamic Economic System |
|---|---|---|
| Exploration & Drilling | Handed to foreign/private contractors (Contract of Work) | Conducted independently by the State (Caliphate Company) |
| Asset Ownership | Controlled by private sector for decades | 100% owned by the people from beginning to end |
| Profit Distribution | 80-90% for corporations, state only gets small taxes/royalties | 100% of profit goes to Baitul Mal (Public Ownership Fund) |
| Impact on People | People become spectators, buy fuel at international prices | People receive cheap/free fuel and public services |
7. How to Distribute the Proceeds of Public Ownership
How does the Caliph distribute mining and energy proceeds to the people? Sheikh Taqiyuddin an-Nabhani explains that the Caliph has discretion to distribute them through two main methods:
First: Distribution in the Form of Goods/Services Directly The state distributes water, electricity, LPG gas, and fuel directly to citizens’ homes. This distribution can be provided free of charge, or sold at very low prices (only enough to cover production/drilling costs, without taking a single penny of profit).
Second: Distribution in the Form of Cash or Public Services If the state exports surplus oil or gold abroad, then the proceeds from the sale are distributed to the people. Distribution can take the form of:
- Cash: Distributed directly to every individual citizen equally.
- Free Public Services: The funds are used to build free schools, high-quality free hospitals, toll-free highways, and other public infrastructure.
Through this mechanism, natural wealth is truly felt by every citizen, from newborn babies to elderly grandparents.
8. Forests, Seas, and the Environment
The concept of Public Ownership is also highly relevant to environmental conservation. Under Capitalism, forests are burned and cleared by palm oil companies for profit, resulting in smoke haze that tortures millions of people. Seas are polluted by private factory waste.
In Islam, natural forests and oceans are Public Ownership. No private company (logging concession) may claim hundreds of thousands of hectares of forest as its own. If someone cuts wood in the forest, they may only take what they can manage individually, and must not destroy the forest’s sustainability (because it is common property).
The Caliphate is tasked with preserving these forests and seas, preventing over-exploitation, and punishing anyone who monopolizes or destroys them. This is a form of Rahmatan lil ‘Alamin that maintains the balance of the earth’s ecosystem.
9. Exemplary Story: The Raumah Well and Uthman’s Generosity
Islamic history records a beautiful implementation of the concept of Public Ownership from the time of the Messenger of Allah ﷺ.
When the Muhajirin arrived in Madinah, they had difficulty obtaining drinking water. The only good source of fresh water was the Raumah Well, owned by a Jewish man. The Jew privatized the well and sold its water at high prices to the Muslims.
Seeing the suffering of the ummah, the Messenger of Allah ﷺ made an extraordinary offer: “Whoever buys the Raumah well and makes its bucket alongside the buckets of the Muslims (endowing it), Paradise is theirs.” (HR. Tirmidhi).
Hearing this, Uthman bin Affan (RA) immediately bought the well at a very high price (35,000 dirhams). After purchasing it, Uthman did not make it a private business. He freed the well to become public property (waqf). From that moment, all residents of Madinah, rich and poor alike, were free to take water from the Raumah well at no cost.
Uthman (RA) had transformed a privatized asset (Capitalist monopoly) into Public Ownership that brought mercy to all.
10. Conclusion: Restoring the People’s Economic Sovereignty
Dear readers, Public Ownership (Milkiyah Ammah) is one of the most important pillars that distinguishes the Islamic Economic System from any other ideology in the world.
- It destroys oligarchies by forbidding the privatization of natural resources.
- It guarantees welfare by ensuring energy and water can be accessed cheaply or for free.
- It is financially independent, making the Caliphate State unnecessary to beg for riba loans from the IMF or World Bank to build infrastructure.
Formula:
Public Ownership = Wealth Essential for the Masses + Managed by the State + 100% of Proceeds Returned to the People
This is an economic system that humanizes humans. A system where gold mountains and oil seas truly become blessings for the people, not a curse that breeds poverty and environmental destruction. This justice can only be fully realized when Islamic Sharia is applied comprehensively in the institution of the Caliphate.
Prayer for the Welfare of the Ummah
“O Allah, make our natural resources full of blessing. Protect the wealth of this ummah from greedy hands, and make it a means of welfare for all the people. Aameen.”
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