Having the same base in the concept of market has made people think that there is no difference between Islamic economic system with Capitalism (Market system). There are some people claim that Capitalism defined Islamic economic system and also the other way. These misconception is due to the concept of free-market and private ownership in these two systems. Instead, if we study these two system more deeply, we can notice there are huge differences between these two even in their ideas and their objectives.

Capitalism is a system that mainly focuses on producing growth and wealth in which the free market alone controls the production of goods and services. The buyers and sellers establish a price through the exchange of goods and services. Their objectives is to maximize profits for the producer and maximize utilities for the consumer. Therefore, the exchange of goods and services in the market are a voluntary decision. It is based on their willingness and wealth. To simply put, self-interest is the prime of the market in this system. Both parties are trying their best to meet and fulfill their objectives and wants.

In contrast, market in Islamic economic system is not merely an exchange of goods and services between two parties. Instead, they have two objectives that need to be achieved which are; i) to maximize profits and utilities and ii) to maximize welfare in this world and in the world of the Hereafter. This is because we know that Islam views every aspect in life as a whole where both of the worldly matter and also the life after death should not be separated into two different things. Everything that we do in this temporary world will be counted in the Hereafter. Islam also acknowledge the concept of self-interest. However, as a Muslim, they are bounded by the Shariah laws that provide a guideline in every transaction in the market.

It is important to firstly understand the difference in the concept and the goals between these two systems to ensure that we wont mistook and misunderstood between them.