Investment and entrepreneurship in Islamic law: a comparative analysis of the fundamental criteria

Sadique, Muhammad Abdurrahman (2020) Investment and entrepreneurship in Islamic law: a comparative analysis of the fundamental criteria. Journal of Research in Humanities and Social Science, 8 (12). 09-17. ISSN 2321 - 9467

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Abstract

Islamic law has a well formulated system of requirements and rules governing investment and fund management, termed mudarabah in Arabic. In this contractual relationship, funds of one or more investors are provided on profit sharing basis to an entrepreneur, who contributes his effort and expertise, while the risk of genuine loss is solely borne by the investor. The prescribed system attempts to ensure that the formation, operation and conclusion of the investment process taking place on a just and equitable foundation, ruling out violation of the rights of any. Thus, the principle criteria lay down the conditions and rules that should be observed with regard to the contractors, capital, profit division, management, rights of parties as well as liquidation and invalidity. While the schools of Islamic law have different approaches to many of these issues based on fundamental precepts derived from the holy Qur’an and the prophetic traditions, each school provides a complete and coherent system that is well-balanced and equitable. The current study attempts to provide a brief and clear comparison of the positions of the schools of Islamic law on the major aspects pertaining to Islamic investment and fund management, as portrayed in the major works of each school.

Item Type:	Article (Journal)
Additional Information:	5640/86104
Uncontrolled Keywords:	investment, fund management, entrepreneur, financing, Islamic, equity
Subjects:	H Social Sciences > HG Finance > HG4501 Stocks, investment, speculation
Kulliyyahs/Centres/Divisions/Institutes (Can select more than one option. Press CONTROL button):	Ahmad Ibrahim Kulliyyah of Laws Ahmad Ibrahim Kulliyyah of Laws > Department of Islamic Law
Depositing User:	Dr Muhammad Abdurrahman Sadique
Date Deposited:	14 Dec 2020 17:00
Last Modified:	14 Dec 2020 17:00
URI:	http://irep.iium.edu.my/id/eprint/86104

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