The civil law form of musharakah as an instrument for direct participation of the Islamic bank in capital: A retrospective analysis and modernity
DOI:
https://doi.org/10.21638/spbu25.2020.302Abstract
Conventional banks, which operate under the conditions of interest capitalism, no longer dominate the financial sector. In the 21st century, Islamic banks, which provide services on an interest-free basis, have become their main competitors. In recent years, Islamic banking has grown rapidly even though 30–40 years ago it was only a regional phenomenon that could be found in countries with a predominantly Muslim population. The dispersal of capital by scaling a separate interest-free banking segment is now on the agenda of the Islamic world. It is stimulating the growing social demand for a fair distribution of resources within the community, as well as sustaining, at the same time, resilient economic development. However, the activity of Islamic banks remains a poorly studied and understood phenomenon within the circles of Russian legal science. In this article, the authors reveal the legal nature of the participation transaction involving shirkat al’-inan, while attempting to clarify the notion of using musharakah as a form of civil law, derived from shirkat al’-inan, within the Islamic banking system.
Keywords:
musharakah, al-shirkah, participation transaction, investments, islamic banking, Islamic bank, shirkat al’-inan
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Published
30.12.2020
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Kuznetsova, A. N., & Tenberga , I. (2020). The civil law form of musharakah as an instrument for direct participation of the Islamic bank in capital: A retrospective analysis and modernity. Pravovedenie, 64(3), 326–351. https://doi.org/10.21638/spbu25.2020.302
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Articles of "Pravovedenie" are open access distributed under the terms of the License Agreement with Saint Petersburg State University, which permits to the authors unrestricted distribution and self-archiving free of charge.
