Umar bin Abdul Aziz's Method to Overcome Inequality: Ban Officials from Taking Profits

Caliph Umar bin Abdul Aziz is remembered as an Islamic leader who successfully reduced economic inequality and eradicated poverty in a relatively short time. Through a series of reforms, ranging from wealth redistribution and a ban on officials taking advantage of public assets to overhauling the taxation system, Umar bin Abdul Aziz was able to create prosperity that made it difficult to find zakat recipients in some areas of his realm.

Before becoming caliph, Umar bin Abdul Aziz served as governor in Madinah. He was a pious figure of good character who was just in his governance, leading him to be categorised as the fifth Rashidun caliph.

Upon being selected as caliph, he implemented several important reforms. Firstly, he carried out income and wealth redistribution, recognising that economic inequality arose from poor wealth distribution. He wanted policies that provided justice for the poor and the oppressed. State officials were prohibited from taking profit from the wealth of the people. Assets obtained by officials through unjust means were returned to their rightful owners or to the baitulmal (public treasury) if the owner was unknown. Umar actively encouraged the wealthy to share with the poor until they reached had al-kifayah (the sufficiency threshold). He set an excellent example in separating state assets from personal property and donating most of his wealth to the community.

Secondly, he ensured economic growth and public welfare through law enforcement and infrastructure development. Thirdly, Umar bin Abdul Aziz reformed taxation and state revenue sources. Regarding the land tax (kharaj), he prohibited the buying and selling of kharaj land, whereas previous caliphs had permitted its sale with the proceeds going to the baitulmal.