Umar bin Abdul Aziz, the eighth caliph of the Umayyad Dynasty, is widely recognized for his wisdom in managing the economy and governance. Although his reign was brief, from 717 to 720 CE, it became a key example of how just, Sharia-based economic policies can profoundly impact societal welfare.
Umar bin Abdul Aziz is often seen as a prototype of the ideal leader embodying the qualities of a Sufi, a scholar, and a statesman. Before making any decisions, he would consult with Islamic scholars to ensure that his policies aligned with Sharia principles. One of his earliest actions as caliph was to gather members of the royal family and demand that they return wealth acquired through questionable means to the state treasury, or Baitulmal. He himself surrendered all his personal wealth, including agricultural estates in Syria, Egypt, and the Hijaz that generated around 40,000 dinars annually, as well as family jewelry and clothing, to the treasury.
This article delves into the economic policies of Umar bin Abdul Aziz, the strategies he implemented, and the effects these policies had on society during his time.
1. Eliminating Discrimination
A cornerstone of Umar bin Abdul Aziz’s governance was justice, which he ensured was deeply rooted in Islamic teachings. His most notable policy was eliminating the social divide between Arabs and non-Arabs. One such reform involved ending the practice of imposing jizyah and kharaj (taxes) on mawali (Muslims who were non-Arabs). He argued that this taxation contradicted Islamic values, which emphasize spreading Islam, not collecting wealth. As a result, he halted unnecessary territorial expansions and ceased unfair tax collections. For instance, while mawali previously had to pay jizyah and kharaj, after converting to Islam, they were only required to pay usyr (a form of almsgiving tax).
Initially, taxes were not imposed at the start of his rule due to the unstable economic conditions. However, once stability was achieved, a fair taxation system was implemented Muslims paid kharaj, while non-Muslims paid both kharaj and jizyah.
2. Zakat
As a pious caliph, Umar bin Abdul Aziz decentralized zakat regulation, allowing local regions to manage it independently. Taxes were not always funneled to the central government, and if any region faced a shortfall, they received financial support from the central treasury. This policy led to significant surpluses in many areas. Umar also encouraged wealthier regions to assist those in need, facilitating equitable development across the empire.
Historical records indicate that during Umar’s caliphate, societal prosperity reached unprecedented levels. In fact, zakat collectors (amil) often struggled to find qualified recipients (mustahiq) of zakat, as many people had already achieved the status of muzakki (those who pay zakat). To ensure effective and transparent zakat management, Umar bin Abdul Aziz carefully selected amil who demonstrated high integrity and professional competence, and he strictly monitored their performance.
3. Land Management Policies
Land management was another key aspect of Umar bin Abdul Aziz’s economic reforms. Under previous administrations, there were unjust practices in land distribution, with large plots being controlled by elites and nobles. Umar reversed this by returning illegally seized land to its rightful owners or to the state for the public good.
He also championed farmers’ rights and promoted the efficient use of fertile land to increase agricultural productivity. By doing so, Umar sought to create a more equitable distribution of resources and boost food production.
4. Encouraging Infrastructure Development
Umar bin Abdul Aziz recognized the importance of infrastructure development in driving economic progress. He prioritized building public facilities such as roads, bridges, and irrigation systems to support agriculture and trade. Improved infrastructure also facilitated the movement of goods and services, stimulating economic activity.
By reducing burdensome taxes and increasing investment in infrastructure, Umar bin Abdul Aziz successfully stimulated overall economic growth.
Conclusion
The economic policies of Umar bin Abdul Aziz serve as a remarkable example of how a just leader can significantly improve the welfare of society. By utilizing zakat as a primary instrument, combating corruption, and ensuring fair wealth distribution, Umar bin Abdul Aziz achieved a level of economic and social stability that benefited all citizens.
Also read: The Story of Abu Bakr Radhiyallahu Anhu’s Generosity in Giving Away All His Possessions
References:
- Muhammad, Y. (2007). Khalifah Umar bin Abdul Aziz dan Kebijakan Ekonomi. Jakarta: Pustaka Al-Kautsar.
- Euis Amalia, Sejarah Pemikiran Ekonomi Islam dari Masa Klasik hingga Kontemporer (Depok: Gramata Media, 2010), hlm. 103-104.
- Akram, M. (2015). Islamic Governance and Economic Systems. Riyadh: International Islamic University.
