1-Dual Form of Islamic Economy:

The economic structure of the Islamic state consists of private property and public property. This does not mean that the economic structure of an Islamic state is some sort of combination of capitalism and socialism. Sadr strongly rejects this misconception. According to him, Islam neither agrees with capitalism in the belief that private ownership is the fundamental principle nor does it see eye to eye with socialism in regarding the public ownership as the general principle. The private and public rights of ownership in Islam stems from the fundamental beliefs of Islam. This is similar to the way that private ownership is advocated in the capitalistic system and public ownership by socialistic system as a logical conclusion of their ideological and philosophical beliefs. Islamic economy is the logical conclusion of Islamic ideology. Therefore, in order to justify private and public ownership in Islam, one must understand the rights and obligations of the individuals and the state in it. In this way, Sadr distinguishes Islamic economy from capitalism and socialism.

2-Restricted Economic Freedom:

The second element of the Islamic economy is limited freedom allowed to an individual in the economic field. This restriction on freedom states Sadr is based upon some moral and spiritual values in which Islam believes. He differentiates two kinds of restrictions, first; the personal restriction, arising from one‟s self, which is the result of spiritual and ideological effects of Islam upon one‟s personality, Second; the objective restriction, which is the expression of an external power, which defines and regulates the social behaviours in an Islamic society.

The personal restriction develops under the shadow of a special training and education given to an individual in an Islamic society, and according to Sadr, it showed dynamic results during the early period of Islam. The objective restriction in Islam is based upon the principle that there can be no freedom for an individual, in respect of such kind of activities which goes against the Shariah. 
The implementation of this principle according to Sadr is materialized in two ways; first, the Shariah has banned certain economic and social activities, which contradicts with the ideals and values adopted by Islam, such as Usury and monopolization. Second, the Shariah has given authority to the ruler (Waliyyu‟l-Amr) to supervise and intervene in public activities in order to promote social interests. He derives the justification of legislative authority in respect of the principle of supervision and intervention from the Qur‟anic verse: 
 “Obey Allah, and obey the messenger and those in authority among you.”

A ruler in Islam states Sadr, cannot make lawful things unlawful, however, he enjoys the right of interference in activities which are permissible under the Islamic Shariah. He can thus prohibit or permit such activities which suit the Islamic ideals of the society. In this respect, Sadr mentions the interference of Prophet in the matters of people. He mentions that prophet is reported to have decided among the people of Madinah in a case about the watering troughs for the Palm trees by saying that surplus of anything should not be denied to others. He also gave a verdict in a case that arose among the people of the desert that surplus water should not be denied to others or the surplus herbage. According to Sadr, it is well known by the jurists that to deny surplus of water or herbage to others is not unlawful in a general way therefore, it only shows the right of interference by the authority in the public matters in an Islamic state.

3-Social Justice:

The Third element of Islamic economy is the principle of social justice embodied by Islam in the system of distribution of wealth in the Islamic society. According to Sadr, the meaning of social justice in Islam is so broad that its every aspect is pulsating with the concept justice. Social justice in Islam aims at developing a better human society. According to him, the Islamic form of social justice comprises of two general principles; first one is „general reciprocal responsibility‟, on the basis of which it is obligatory upon Muslims to help each other in times of need and the other one is „social balance‟, on the basis of which it is the responsibility of the state to bring different standards of people close to each other. It is through this reciprocal responsibility and the balance with their Islamic sense states Sadr that, just social values are materialized and Islamic form of social justice comes into existence. The importance of social justice in Islamic economy in the light of these principles is clearly reflected from the first political address of the prophet to the people of Madina. Prophet Said, “Oh people, send forth (some good) for yourself. By Allah, one of you will certainly be stunned leaving behind his sheep without a herdsman and then his Lord would say to him. Did not my Messenger come to you and convey (My Message)? I granted you bountiful wealth and favored you, so what did you then send forth for yourself?” Therefore, he would look at the right and left and would find nothing there, and then he would look in front of him where he would see nothing but the Hell. Therefore, anyone could possibly save himself from the fire (of Hell) even though by means of a portion of data, he must do it.” Besides this address Sadr states that, prophet started his first political activity in Madina by establishing brotherhood between the emigrants of Makka and the helpers of Madina. This fraternity was based upon the principle of reciprocal responsibility in order to materialize the social interests which Islam intends.