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Conventional and Islamic Trading Frameworks: Differences and Similarities

  • Mohsin Ali
  • Najeeb Zada
Chapter
Part of the Palgrave CIBFR Studies in Islamic Finance book series (PCSIF)

Abstract

We discuss both the practical and philosophical similarities and differences between Islamic and conventional trading framework in this chapter. We discuss the permissibility principle in Islam which sets the basic premise of all types of dealings. We argue that Islamic trading framework includes whatever a conventional trading framework has except the forbidden parts. We discuss these forbidden parts in detail which include gharar, riba, risk shifting, etc. We also discuss the philosophical differences including property ownership, risk sharing and the impacts on economy. Islam seems to present a more comprehensive yet compatible trading framework to be practice, which not only suits Islamic world view but is also promoted to have positive impact on the economies at large.

Keywords

Similarities Differences Islamic trading framework Conventional trading framework 

References

  1. Addas, W. A. J. (2008, January 15). Methodology of economics: Secular versus Islamic (MPRA).Google Scholar
  2. Al-Jaziri, A. R. (1973). Kitab al-fiqh ala mazahib al-arba’ah. Mesir: Al-Maktabah at-Tijariyah.Google Scholar

Copyright information

© The Author(s) 2019

Authors and Affiliations

  • Mohsin Ali
    • 1
  • Najeeb Zada
    • 2
  1. 1.Taylor’s Business SchoolTaylor’s UniversitySubang JayaMalaysia
  2. 2.Department of Islamic TheologyIslamia College PeshawarPeshawarPakistan

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