According to the modern history of Islamic economics during the mid of 20th century, many contemporary Islamic jurists developed a new phase of research regarding Islamic economics. Muhammad Bāqir Al-Ṣadr was one of those contemporary jurists who played a vital role in the development of modern Islamic economics and the banking system. His major work in this regard is the internationally famous book on Islamic economy Iqtiṣādunā (Our Economy) a comprehensive book on the Islamic economic system. He comparatively studied the contemporary economics doctrines and then presented Islamic economics as a moderate financial system compared to capitalism and marxism. Being a moderate economic system the mechanism regarding the production and distribution of products is very essential. So in this research the Islamic economy as moderate financial system and the mechanism of distribution of products in Islamic economics will be discussed according to the views of renowned Islamic Jurist Muhammad Bāqir Al-Ṣadr.
Key words: Islam, Economics, Financial System, Al-Ṣadr