Sharī'ah Position on Ensuring Presence of Capital in Joint Equity Based Financing
Muhammad Abdurrahman Sadique
International Islamic University Malaysia
June 1, 2009
Islamic Economic Studies, Vol. 17, No. 1, June 2009
Islamic legal texts indicate that a joint venture involving monetary capital could be set in motion on the basis of capital that is existent and present, with clear agreement regarding the share of each partner. While gradual release of capital is admissible, prior existence of capital is necessary. Due to credit supplementing real money in a substantial manner, the identity of money in the current fiscal environment appears to have undergone significant change, the nature and influence of which need reassessment. This is crucial for determining the form in which the existence and presence of capital could be ensured. The emphasis placed in Sharī'ah on existence and presence of capital could indicate a measure for thwarting unwelcome monetary expansion, thus controlling inflation.
Number of Pages in PDF File: 27
Keywords: Islamic law, partnership, capital, money
JEL Classification: G24, E51Accepted Paper Series
Date posted: November 25, 2011
© 2013 Social Science Electronic Publishing, Inc. All Rights Reserved.
This page was processed by apollo7 in 0.391 seconds