Conventional and Islamic Trading Frameworks: Differences and Similarities
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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.