Mush̄ārakah and Mudārabah Instruments: Assessing their Characteristics

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 att...

Full description

Bibliographic Details
Main Author: Naeem Chowdhury
Format: Article
Language:English
Published: Universiti Utara Malaysia 2013-07-01
Series:International Journal of Banking and Finance
Online Access:https://www.scienceopen.com/document?vid=06e1bb61-9801-4c18-aa27-ca3aefd93192
Description
Summary: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.  
ISSN:1675-722X