Muslim traders structured investments to comply with Islamic prohibitions against usury
Historical and contemporary sources demonstrate that Muslim traders and financial institutions structure investments through profit-and-loss sharing mechanisms like mudarabah and asset-linked financing to comply with Islamic prohibitions against usury.
The claim is specific, empirical, and well-supported by literature detailing Islamic finance structures such as mudarabah and asset-linked partnerships designed to avoid usury (riba).
M. Rahman. Mudarabah and its Applications in Islamic Finance: An Analysis. 2018. https://doi.org/10.5958/2249-7323.2018.00042.1
Paper 0 details profit-and-loss sharing partnership structures like mudarabah used historically and currently to avoid interest prohibitions.
See more details
Ali Keya Anami. Financial inclusion through Islamic financial instruments: A catalyst for small and medium enterprises (SMEs). 2024. https://doi.org/10.53022/oarjms.2024.7.1.0008
Paper 5 explains that Islamic finance replaces pure debt securities with asset-linked financing and joint partnerships to comply with the prohibition of riba (usury).
Feyza CEVHERLİ. As a Commercial Genius Khadija bint Khuwaylid (RA) and Her Mudarabah Partnership with Prophet Muhammad (SAW). 2022. https://doi.org/10.54427/ijisef.1191298
Paper 7 notes historical commercial partnerships such as mudarabah established during early Islam, illustrating how trade investments were structured to align with religious principles.
The paper trail · every fact has a biography
Challenge the receipt
Citation formatting by citeproc-js (Frank Bennett) and the Citation Style Language project. Source and licenses.
Terms · Privacy · How verdicts work · Dispute this receipt