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Razi's theory has an axiological and epistemological relevance that ethical values are established on knowledge model which is developed by interactive preferences between polity and the value system. The point of departure for the understanding of the differences of Razi's human needs theory vis‐a‐vis the contemporary ideas are the metaphysical principle that underlies the notion of the theory. By means of this principle we come to understand the place of human being in the universe, his function and purpose in life and his final destination, therefore his needs and motivations. Thus an economic system based on Razi's human needs theory is an ethico‐economy which tilts neither toward socialism nor laissez‐faire capitalism. The notion of need can be interpreted as a reaction against allegedly value‐free or value‐neutral approaches in the social sciences. In this sense, the work of Razi can be most usefully seen as part of those ethical ideas which he invoked in the 12th century. Razi's writing on ethics that very closely related to philosophy is much less well known. Yet it is essential in an attempt to evaluate his contribution to the development of Islamic thought. The scope of his writings is remarkable, ranging from his early analyses of theological and legal controversies in the eastern part of the Muslim world, through a book on Qur'anic Exegesis and ethics; from medical sciences to his sustained polemic on credology and philosophy. In short, his writings embrace diversity of areas, from theology to philosophy, from natural to applied sciences including chemistry, astronomy and medicine. In his writings, he succeeded in proving his claim that excellence and perfection of man are not realized by means of bodily sensual pleasure. Rather, it is realized instead, by means of knowledge, power and excellent manners. This paper gives an account of the relevancies of knowledge‐based world view in the light of Razi's view of human needs. In dealing with this topic, two questions are explored: (1) what is his view of human needs? and, (2) what is the relevance of his view to ethics and economics?

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