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Islamic Financing Arrangements Used in Islamic Banking

25 Pages Posted: 11 Apr 2007  

Ehsan Zar Rokh

University of Tehran; Islamic Azad University (IAU) - Kermanshah branch, Students

Date Written: April 2, 2007

Abstract

Islamic finance is an old concept but a very young discipline in the academic sense. It lacks the required extent and level of theories and models needed for expansion and implementation of the framework provided by Islam. In these circumstances, unawareness and confusion exist as to the form of the Islamic financial system and instruments.

The main difference between the present economic system and the Islamic economic system is that the later is based on keeping in view certain social objectives for the benefit of human beings and society. Islam, through its various principles, guides human life and ensures free enterprise and trade. That is the reason why the conventional banker does not have to be concerned with the moral implications of the business venture for which money is lent.

Keywords: Mushrika, Murabiha, Qarde Al'Hasana, Ijareh, Mudaraba

Suggested Citation

Zar Rokh, Ehsan, Islamic Financing Arrangements Used in Islamic Banking (April 2, 2007). Available at SSRN: https://ssrn.com/abstract=978911 or http://dx.doi.org/10.2139/ssrn.978911

Ehsan Zar Rokh (Contact Author)

University of Tehran ( email )

Tehran
Iran
00989183395983 (Phone)

HOME PAGE: http://www.zarrokh.ir

Islamic Azad University (IAU) - Kermanshah branch, Students

Iran

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