Narh

This entry explores the origin, history, and application of the Arabic concept of narh. The concept involves government agencies officially setting and controlling the prices of goods or services. Besides price regulation, it also entails quality control and standardization. Among Islamic scholars, opinions vary regarding price intervention in normal market conditions. Narh is considered necessary in cases of extreme price hikes and exceptional events that could harm the public. However, some oppose it due to concerns over its potential negative impact on producers and consumers. During the time between the Umayyad and Ottoman periods in Islamic history, narh practices were widespread. These practices were put in place by the state to regulate market prices and protect the interests of producers and consumers. Transportation costs, profit margins, money value, product supply and demand, as well as military and political conditions were all considered when determining the narh. This entry provides a review of the history and implementation of narh, one of the regulatory mechanisms used in Islamic economics.