Open AccessMush̄ārakah and Mudārabah Instruments: Assessing their Characteristics
Author(s) -
Naeem Chowdhury
Publication year - 2013
Publication title -
s and p : sound and pictures
Language(s) - English
Resource type - Journals
ISSN - 1675-722X
DOI - 10.32890/ijbf2013.10.2.8473
Subject(s) - islam , globe , islamic finance , equity (law) , debt , business , finance , financial system , economics , political science , geography , law , medicine , archaeology , ophthalmology
Until very recently, equity financing is more in line with the spirit of Islam as compared with debt financing. As such, mushārakah and mudārabah are the preferred modes for Islamic investors. It is therefore a matter of a concern that even after four decades after Islamic finance captured the attention of investors around the globe, these two purest genres account only for a small percentage of Islamic financial industry. The paper examines more searchingly for the reasons why mushārakah and mudārabah occupy such insignificant place among Islamic financial products. This paper offers an analytical insight.