Abstract
Islamic finance, in the manner in which it is executed today, represents the use of conventional financial instruments to raise funds in a manner consistent with the precepts of Islamic law or Shari’ah. Of those precepts, perhaps the most important, from a financing perspective, is the prohibition of unlawful profits as exemplified by interest (‘riba’) and gains from speculation or trading in risk (‘gharar’). This prohibition means that fund-raising transactions whose legal ‘form’ – and that term is used here deliberately – is that of a loan or other interest-based instrument have no place within the Islamic finance universe.
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© 2011 Springer-Verlag Berlin Heidelberg
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Ali, P.U. (2011). Shari’ah Compliant Structured Finance – Characteristics, Analogies and Legal Risks in Common Law Jurisdictions. In: Köhn, D. (eds) Mobilising Capital for Emerging Markets. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-540-92225-4_7
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DOI: https://doi.org/10.1007/978-3-540-92225-4_7
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