ABSTRACT
Rather than presenting a seemingly attractive, yet oversimplified checklist, this chapter provides timeless guidelines for setting pricing strategies, an approach that is in line with the core teachings of Islam. Since Islam accepts markets as the basic coordinating mechanism of the economic system in the Islamic state its teachings seek to guarantee the flow of goods and services between the consumers and suppliers of this market at a mutually agreed and acceptable price. In principle, the Islamic market should be free to respond to the market forces operating within it and reflecting the aggregate influence of buyers and sellers on the price and the quantity of the offered products. A company must recognize that, in an Islamic market, market forces are free to dominate only until the 'freedom' of the consumer is put at risk, e.g., jeopardizing the consumer's right to healthy food, suitable medication or proper education.
