Law and practice of profit-sharing in Islamic banking with particular reference to ''Mudarabah'' and ''Murabahah'' (Ph.D. Thesis)

This thesis examines aspects of the law of sales and establishes basic rules for them, and aims to produce useful knowledge about how medieval jurists approached this subject matter. Certain transactions containing elements of risk, ignorance, uncertainty and ill-will in their structure were forbidden by the Qur'an and Sunnah due to the risk they carry and for fear of loss by the contractors. Any form of unlawful gain in these contracts is considered as haram (forbidden). Money, the primary medium of exchange in these contracts, is not viewed as a commodity, due to the fact that it in itself does not produce anything. Any type of excess in its lending and borrowing is considered riba and prohibited in Islam.