Document Details

Document Type : Article In Journal 
Document Title :
Impact of Inflation on Mudarabah Profits: Some Observations
أثر التضخم على أرباح المضاربة : بعض الملاحظات
 
Subject : Discussion Paper 
Document Language : English 
Abstract : The depreciation of currency and its use as unit of account jeopardises the ability of mudarabah (profit sharing) to do justice to the rabb-al-mal (capital owner) and it results in transfer of most of the gains (real) and in some cases even part of the capital to the mudarib (entrepreneur). In addition to moral hazards, it is an important cause of non prevalence of profit sharing mode of finance. It adversely affects musharakah and it has reduced the availability of qard hasan to almost nil. The viability of these modes of finance is vital for ensuring the full utilisation of Islamic finance. If mudarabah contract is modified so that it provides for sharing of real profit in agreed proportions (instead of nominal profits), inflation would not affect profit sharing and both mudarib (entrepreneur) and rabb-al-mal share real profit in agreed proportion. 
ISSN : 1018-7383 
Journal Name : Islamic Economics Journal 
Volume : 17 
Issue Number : 2 
Publishing Year : 1425 AH
2004 AD 
Number Of Pages : 4 
Article Type : Article 
Added Date : Sunday, October 11, 2009 

Researchers

Researcher Name (Arabic)Researcher Name (English)Researcher TypeDr GradeEmail
حفظ الربHIFZUR RABResearcher  

Files

File NameTypeDescription
 21133.pdf pdf 

Back To Researches Page