What is the ruling of Islam regarding socialism and capitalism?

Question:
What is the ruling of Islam regarding the application of socialist and capitalist methodologies in Islamic countries?

Answer:
It is not permissible to apply socialism or capitalism. One must adhere to the Shari'ah of Allah. Kings and presidents must adhere to the Shari'ah of Allah. They must not make lawful what Allah has forbidden, such as riba (usury or interest), nor make lawful the wealth of Muslims due to socialism or communism. Rather, it is obligatory for all presidents who claim affiliation with Islam to judge by the Shari'ah of Allah, and not to follow capitalism, socialism, communism, or secularism. They must all beware of these and adhere to the Shari'ah of Allah, and be upright upon it. Capital must be restricted by the Shari'ah. The Shari'ah brought in capital, but it must be restricted by the Shari'ah. It is not permissible to use capital in what Allah has forbidden, such as riba (usury or interest), gambling, and the like. The Shari'ah brought in capital. Wealth belongs to its owners, and they dispose of it as Allah has legislated.
The practice of socialism and communism—taking people's wealth and confiscating their property—is invalid, abominable, and contrary to the Shari'ah and reason. However, whoever adheres to the Shari'ah of Allah must manage his wealth according to the Shari'ah of Allah, not according to the method of Western capitalism involving riba (usury or interest), gambling, and the like. No one has the right to confiscate people's wealth or transgress against them on the basis of their affiliation with communism or socialism. Rather, it is obligatory for the people of Islam and the rulers of the Muslims to adhere to the Shari'ah of Allah in everything. It is not permissible for them to deviate from the Shari'ah of Allah, neither from the East nor from the West.