The intellectual foundations of the capitalist approach that shapes today’s global economy are predominantly shaped by Anglo-Saxon thinking. The works of Adam Smith, particularly The Wealth of Nations and The Theory of Moral Sentiments, serve as the foundational texts in the examination of the moral and rational limitations to the functioning of the capitalist system. Nevertheless, the absence of ethical standards in contemporary capitalism has precipitated numerous economic crises and scandals, both historical and ongoing. The 2008 global financial crisis and the Enron and Volkswagen emissions scandals have demonstrated the social costs and moral weaknesses inherent to capitalism. The literature of early Islamic economics offered a critique of the ethical shortcomings of capitalism. Nevertheless, some historians contend that the fundamental tenets of capitalism have their origins in Islamic civilization. Examples such as the economic structure of Mecca and Ibn Khaldun’s views against state intervention in the economy illustrate Islam’s contribution to a free market economy. This entry compares the economic costs of capitalism’s speculative crises and ethical violations with the potential solutions offered by the moral norms of Islamic economics. Furthermore, it evaluates Islam’s approach to a free market economy from a historical perspective and discusses the concept of moral capitalism from the perspective of the trade and market dynamics of Islamic civilization. It also highlights the differences between the anticapitalist approaches of some early Islamic thinkers and the more moderate views found in later literature.