Financing micro and medium sized enterprises through decreasing partnership (musharakah mutanaqisah): refining shari'ah and banking aspects for enhanced applicability
Decreasing partnership as proposed by contemporary scholars could be effectively employed in financing MMEs, for procurement of assets as well as financing complete ventures. Its significance in financing MMEs could be enhanced through giving further prominence to the basis of equity participation,...
| Main Author: | |
|---|---|
| Other Authors: | |
| Format: | Book Chapter |
| Language: | English |
| Published: |
Islamic Research & Training Institute, Islamic Development Bank
2008
|
| Subjects: | |
| Online Access: | http://irep.iium.edu.my/7207/ http://irep.iium.edu.my/7207/ http://irep.iium.edu.my/7207/1/Decreasing_Partnership_for_MMEs-M_Abdurrahman_Sadique.pdf |
| id |
iium-7207 |
|---|---|
| recordtype |
eprints |
| spelling |
iium-72072012-05-31T02:01:54Z http://irep.iium.edu.my/7207/ Financing micro and medium sized enterprises through decreasing partnership (musharakah mutanaqisah): refining shari'ah and banking aspects for enhanced applicability Sadique, Muhammad Abdurrahman HG1501 Banking HG179 Personal finance KBP173.25 Islamic law and other disciplines or subjects Decreasing partnership as proposed by contemporary scholars could be effectively employed in financing MMEs, for procurement of assets as well as financing complete ventures. Its significance in financing MMEs could be enhanced through giving further prominence to the basis of equity participation, allowing the ancillary contracts of ijarah and sale to function independently. The paper argues that the reality of the underlying contracts should be effectively highlighted through pricing the units and ijarah rentals realistically, rather than as an apportionment of the profit element calculated on the capital outlay. In financing ventures on decreasing partnership, expenses of the venture should be shared proportionately; profit share of the bank should decline corresponding to the bank 19s stake, and unit price of the bank 19s share could be fixed based on a price negotiated at the time or professional valuation. The paper seeks to highlight many other conditions that are often violated in practice but that must be fulfilled in order to ensure full Shari'ah compliance. Islamic Research & Training Institute, Islamic Development Bank Obaidullah, Mohammed Haji Abdul Latiff, Hajah Salma 2008-02 Book Chapter PeerReviewed application/pdf en http://irep.iium.edu.my/7207/1/Decreasing_Partnership_for_MMEs-M_Abdurrahman_Sadique.pdf Sadique, Muhammad Abdurrahman (2008) Financing micro and medium sized enterprises through decreasing partnership (musharakah mutanaqisah): refining shari'ah and banking aspects for enhanced applicability. In: Islamic Finance for Micro and Medium Enterprises. Islamic Research & Training Institute, Islamic Development Bank, Jeddah, pp. 53-73. ISBN 978-9960-32-178-3 http://www.irtipms.org/PubDetE.asp?pub=246&search=islamic%20finance&mode=allwords |
| repository_type |
Digital Repository |
| institution_category |
Local University |
| institution |
International Islamic University Malaysia |
| building |
IIUM Repository |
| collection |
Online Access |
| language |
English |
| topic |
HG1501 Banking HG179 Personal finance KBP173.25 Islamic law and other disciplines or subjects |
| spellingShingle |
HG1501 Banking HG179 Personal finance KBP173.25 Islamic law and other disciplines or subjects Sadique, Muhammad Abdurrahman Financing micro and medium sized enterprises through decreasing partnership (musharakah mutanaqisah): refining shari'ah and banking aspects for enhanced applicability |
| description |
Decreasing partnership as proposed by contemporary scholars could be effectively employed in financing MMEs, for procurement of assets as well as financing complete ventures. Its significance in financing MMEs could be enhanced through giving further prominence to the basis of equity participation, allowing the ancillary contracts of ijarah and sale to function independently. The paper argues
that the reality of the underlying contracts should be effectively highlighted through pricing the units and ijarah rentals realistically, rather than as an apportionment of the profit element calculated on the capital outlay. In financing ventures on decreasing partnership, expenses of the venture should be shared
proportionately; profit share of the bank should decline corresponding to the bank 19s stake, and unit price of the bank 19s share could be fixed based on a price negotiated at the time or professional valuation. The paper seeks to highlight many other conditions that are often violated in practice but that must be fulfilled in order to ensure full Shari'ah compliance. |
| author2 |
Obaidullah, Mohammed |
| author_facet |
Obaidullah, Mohammed Sadique, Muhammad Abdurrahman |
| format |
Book Chapter |
| author |
Sadique, Muhammad Abdurrahman |
| author_sort |
Sadique, Muhammad Abdurrahman |
| title |
Financing micro and medium sized enterprises
through decreasing partnership (musharakah
mutanaqisah): refining shari'ah and banking
aspects for enhanced applicability
|
| title_short |
Financing micro and medium sized enterprises
through decreasing partnership (musharakah
mutanaqisah): refining shari'ah and banking
aspects for enhanced applicability
|
| title_full |
Financing micro and medium sized enterprises
through decreasing partnership (musharakah
mutanaqisah): refining shari'ah and banking
aspects for enhanced applicability
|
| title_fullStr |
Financing micro and medium sized enterprises
through decreasing partnership (musharakah
mutanaqisah): refining shari'ah and banking
aspects for enhanced applicability
|
| title_full_unstemmed |
Financing micro and medium sized enterprises
through decreasing partnership (musharakah
mutanaqisah): refining shari'ah and banking
aspects for enhanced applicability
|
| title_sort |
financing micro and medium sized enterprises
through decreasing partnership (musharakah
mutanaqisah): refining shari'ah and banking
aspects for enhanced applicability |
| publisher |
Islamic Research & Training Institute, Islamic Development Bank |
| publishDate |
2008 |
| url |
http://irep.iium.edu.my/7207/ http://irep.iium.edu.my/7207/ http://irep.iium.edu.my/7207/1/Decreasing_Partnership_for_MMEs-M_Abdurrahman_Sadique.pdf |
| first_indexed |
2023-09-18T20:16:29Z |
| last_indexed |
2023-09-18T20:16:29Z |
| _version_ |
1777407822127955968 |