Islamic Banks and Risk
Numerous are the impediments to Islamic banking’s growth in Egypt, let alone inadequate regulation, but one major impediment is the deep-rooted risk aversion mindset, both on the bank side and the customers side.
Mudaraba is a relationship between an investor and an entrepreneur, where the investor provides all the capital while the entrepreneur (called mudarib) has the abilities to perform the project.
Its Meaning and Forms
Prohibition of gharar is one of the most important foundations of Islamic finance. Many rules are based on this foundation. This articles explains the meaning of gharar and highlights its most common forms with examples.
The Role of Money in Islamic Finance
What is the role of money in Islamic finance and what implications does it have?