Home > NewsCom > Highlights > Need to move to risk-sharing financing

Need to move to risk-sharing financing

ISRA-IRTI-Durham University Declaration, Kuala Lumpur 20 Sept 2012

Risk transfer and risk shifting in exchange contracts violate the Shariah principle that liability is inseparable from the right to profit. This is not only exemplified in equity-based contracts, like musharakah and mudharabah, but even in exchange contracts, such as sales and leasing, whereby risk is shared by virtue of possession.

Share

Piero della Francesca, ‘La città ideale’, Italy XVI century