An Analysis of the Theory in the Current Economy and Islamic Economics

The consistency of any science depends on its expressed theories. In principle, one cannot find a science without a theory. However, so far no definite agreed-upon definition of the theory is provided. The analysis of the nature of the theory in any science is part of the methodology of that science, and its importance is that, in the new sciences, such as Islamic economics, it is necessary, along with the growth of science, to pursue methodological debates to prevent the diversion of that science. Using analytical-descriptive method, this paper seeks to analyze the nature of economic theory in the current economy Islamic economics and its characteristics. In addition, this paper discusses the given definitions for the theory, its function and scope as well as the features of theory in Islamic economics. Findings show that, theorizing economics involves school, system, and economic analysis. The theory can be either normative or prescriptive, also some functions such as description, explanation, forecasting, and guidance.