Towards an application of Musharakah Mutanaqisah principle in Islamic microfinance

Microfinance institutions have been established in many developing countries to solve the problem of poverty. In Muslim countries, Islamic microfinance can be a powerful tool to fight poverty if these institutions are managed in the right way. Islamic finance scholars have argued that the provision...

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Main Authors:	Md Saad, Norma, Abdul Razak, Dzuljastri
Format:	Conference or Workshop Item
Language:	English
Published:	2011
Subjects:	HG1501 Banking
Online Access:	http://irep.iium.edu.my/8685/ http://irep.iium.edu.my/8685/1/Musharakah_Mutanaqisah_Principle_in_Islamic_Microfinance_Aug_22_2011.pdf

id	iium-8685
recordtype	eprints
spelling	iium-86852012-11-20T07:30:36Z http://irep.iium.edu.my/8685/ Towards an application of Musharakah Mutanaqisah principle in Islamic microfinance Md Saad, Norma Abdul Razak, Dzuljastri HG1501 Banking Microfinance institutions have been established in many developing countries to solve the problem of poverty. In Muslim countries, Islamic microfinance can be a powerful tool to fight poverty if these institutions are managed in the right way. Islamic finance scholars have argued that the provision of equity based financing by Islamic financial institutions will facilitate toward achieving the Islamic socio-economic objectives which include social justice, economic growth, efficiency and stability. This paper illustrates that Musharakah Mutanaqsah, an equity based financing instrument, is better than debt-based financing because of its flexibility and end result in the ownership of assets on the part of the customer. The paper also highlights Musharakah Mutanaqisah as an innovative mode of financing and should be a preferred instrument of financing by Islamic microfinance institutions. 2011-10-06 Conference or Workshop Item PeerReviewed application/pdf en http://irep.iium.edu.my/8685/1/Musharakah_Mutanaqisah_Principle_in_Islamic_Microfinance_Aug_22_2011.pdf Md Saad, Norma and Abdul Razak, Dzuljastri (2011) Towards an application of Musharakah Mutanaqisah principle in Islamic microfinance. In: International Islamic Finance & Business Symposium and Halal Carnival 2011, 6-8 October, 2011, Dewan Tuanku Canselor (DATC), UiTM. (Unpublished)
repository_type	Digital Repository
institution_category	Local University
institution	International Islamic University Malaysia
building	IIUM Repository
collection	Online Access
language	English
topic	HG1501 Banking
spellingShingle	HG1501 Banking Md Saad, Norma Abdul Razak, Dzuljastri Towards an application of Musharakah Mutanaqisah principle in Islamic microfinance
description	Microfinance institutions have been established in many developing countries to solve the problem of poverty. In Muslim countries, Islamic microfinance can be a powerful tool to fight poverty if these institutions are managed in the right way. Islamic finance scholars have argued that the provision of equity based financing by Islamic financial institutions will facilitate toward achieving the Islamic socio-economic objectives which include social justice, economic growth, efficiency and stability. This paper illustrates that Musharakah Mutanaqsah, an equity based financing instrument, is better than debt-based financing because of its flexibility and end result in the ownership of assets on the part of the customer. The paper also highlights Musharakah Mutanaqisah as an innovative mode of financing and should be a preferred instrument of financing by Islamic microfinance institutions.
format	Conference or Workshop Item
author	Md Saad, Norma Abdul Razak, Dzuljastri
author_facet	Md Saad, Norma Abdul Razak, Dzuljastri
author_sort	Md Saad, Norma
title	Towards an application of Musharakah Mutanaqisah principle in Islamic microfinance
title_short	Towards an application of Musharakah Mutanaqisah principle in Islamic microfinance
title_full	Towards an application of Musharakah Mutanaqisah principle in Islamic microfinance
title_fullStr	Towards an application of Musharakah Mutanaqisah principle in Islamic microfinance
title_full_unstemmed	Towards an application of Musharakah Mutanaqisah principle in Islamic microfinance
title_sort	towards an application of musharakah mutanaqisah principle in islamic microfinance
publishDate	2011
url	http://irep.iium.edu.my/8685/ http://irep.iium.edu.my/8685/1/Musharakah_Mutanaqisah_Principle_in_Islamic_Microfinance_Aug_22_2011.pdf
first_indexed	2023-09-18T20:18:27Z
last_indexed	2023-09-18T20:18:27Z
_version_	1777407946112630784

Towards an application of Musharakah Mutanaqisah principle in Islamic microfinance

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