Principles of Islamic financing

The authors seek to, through a survey of written work on the phenomenon, come to an understanding of the axioms of Islamic finance. Financing, in an Islamic sense, is seen to be grounded in certain ideas. One such idea, the authors relate, is the necessity of ownership of an item in order to legitimately claim profits from it. Another is that financing takes place whenever there is a time gap between payment and a goods exchange. A third, according to the writers, is that loans are given out of goodness. In a loan, the creditor can get no profits because he does not have ownership of the money he has given away. © Authors