Musharakah is a cornerstone of Islamic finance. It establishes a joint partnership in which multiple parties commit capital or other resources to undertake a venture. Each partner shares in profits and bears losses according to their proportional contributions. This structure eliminates interest (riba), emphasizing genuine collaboration. It also aligns with ethical principles that reinforce mutual […]
Метка: partnership
Mudaraba: An Islamic Method of Raising Capital
Mudaraba is a foundational contract in Islamic finance that facilitates the pooling of resources between two parties. One party provides capital (the rabb-ul-mal), while the other offers expertise and managerial efforts (the mudarib). Profits are shared according to a predetermined ratio, and no fixed interest is charged. This arrangement is rooted in Sharia principles, emphasizing […]
New Milestones for Islamic Finance
Russia’s latest legislative measures have laid the groundwork for experimental zones in specific regions. According to Interfax, these trials will last two years, granting banks permission to introduce products aligned with Shariah principles. This legal framework is a significant milestone, showing that government bodies see potential in diversifying financial instruments. By prohibiting riba (usury), Islamic […]