Resource allocation is central to the study of the role of the private and public sectors in economic development. By the latter we mean structurally transforming the economy in order to attain economic efficiency and distributive equity. In the Islamic approach to socio-economic matters, the focus on these targets assumes a precise and methodological content. The issue then is: is it possible to realise both economic efficiency (material welfare) and distributive equity (moral worth) in an Islamic economic framework using neoclassical methodology?