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The Ottoman Empire’s economy was influenced by Muslim economic theories. These favoured state intervention, protectionism and frowned upon the profit motive. The Ottoman reformers realized they had to liberalize the economy if they wanted to generate sufficient capital to contend with the European nations. The Tanzimat reforms attempted to introduce a series of economic and financial reforms, including the abolition of guilds, free trade, the right to private property and a new tax system. New banks were established, despite the Islamic religious elite denouncing interest payments as Riba or usury since it was contrary to the Koran. The Sultan and his government also moved towards the lifting of barriers on trade and abandoned protectionism.
The Ottoman government in order to implement their secular projects as part of the Tanzimat Reforms, established courts that oversaw economic regulation. The Napoleonic Trade Laws were adopted from the 1850s.<ref>Hanioglu, M. Sukru. ''[
http://<a%20%20href="https://www.amazon.com/gp/product/0691146179/ref=as_li_tl?ie=UTF8&camp=1789&creative=9325&creativeASIN=0691146179&linkCode=as2&tag=dailyh0c-20&linkId=0f59e5dcf94fb5c39ee9efb78a011bf7 A Brief History of the Late Ottoman Empire]'' (Princeton, Princeton University Press, 2008), p. 141. </ref> The Islamic courts still issues decrees on Sharia Law, both in urban and tribal areas, but increasingly they were unable to arbitrate in the areas of economic regulation. These changes were all designed to develop the Ottoman Economy. The changes made were all based on the western model. This was partly because the Ottoman Caliph sought to replicate the policies of the western governments to become as powerful as they had in recent decades.<ref>Jason Goodwin, ''[https://www.amazon.com/gp/product/0312420668/ref=as_li_tl?ie=UTF8&camp=1789&creative=9325&creativeASIN=0312420668&linkCode=as2&tag=dailyh0c-20&linkId=dce09584fbe6824c3500d532ee9fd797 Lords of the Horizons: A History of the Ottoman Empire]''. (Penguin Books, Hamondsworth,2003, p. 189.</ref>
==Impact of the Tanzimat==