Economy of Happiness – Abu Hamid al-Ghazali's Ethical Teachings Abu Hamid al-Ghazali (d. 1111) made seminal contributions to the field of kalam, falsafa, and tasawwuf. While he also dedicated many chapters in his encyclopaedic Ihya’ ‘Ulum al-Din (The revival of religious sciences) to what he considered just and Shari‘a-based economic conduct in (Muslim) society, this contribution has been largely neglected in Western scholarship. This paper aims to analyse and revive al-Ghazali’s understudied contribution to economic thought by emphasizing his economic philosophy and its correlation between Shari‘a’s moral law and the tradition of ta?awwuf. The negligence of al-Ghazali’s economic contributions goes hand in hand with a claim made by several Western scholars (e.g. J. Schumpeter) that various Muslim scholars, such as Ghazanfar and Islahi, tried to rebuke, namely that classical Islamic scholarship did not offer any significant development in the domain of economic thought in what was in Europe known as the Middle Ages. In this paper, I analyse al-Ghazali’s theoretical accounts and economic philosophy as part of his overall ethic of happiness, by extracting passages from his major works, such as Ihya’, Mizan al-‘Amal, and Nasihat al-Muluk, in order to position his ideas within classical Islamic economic thought at the intersection of two often separated domains, namely tasawwuf and Shari‘a. While it is not assumed that al-Ghazali anticipated modern trends of Western economics, he nonetheless presents the culmination of ethical economic thought in classical Islamic tradition, which influenced scholars in the following centuries, by merging kasb (acquisitions of wealth) with zuhd (renunciation of the worldly endeavours) under the banner of tawakkul (trust in God) as part of his overall ethic of happiness.