Shariah Compliant Structure of Business Entities

Abstract:     
The twentieth first century has witnessed resurgence in the observance of fundamental Islamic practices around the world. However, the fact cannot be denied that the current state of business under unbridled capitalism in the majority of cases in the Muslim world remains far from the Islamic ideal. This gap between the ideal and the reality is widening rapidly and has become a threat not only to the well being of the masses but also to the very peace and stability of Muslim societies.

This paper try to describe the structure of shariah compliant business entities. It presents the basic understanding of the concept of business in Islam and its business characteristics. It also explore the classical as well as the modern form of shariah complaint business entities. This paper discussion shows that the principles of Islamic business ethics are not the result of a reaction to external problems; rather they are rooted in the teachings of the Qur'an and the practice of Prophet Muhammad and are a natural component of the Muslim way of thinking and intellect.

Number of Pages in PDF File: 18

Keywords: Shariah Compliant Business Entities, Musharakah, Mudharabah

JEL Classification: K00, M00, M10

working papers series