Rezki Akbar Norrahman
Universitas Islam Negeri Antasari, Indonesia

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Comparative analysis between Musyarakah and Mudharabah financing principles in Islamic Economics Rezki Akbar Norrahman
International Journal of Applied Finance and Business Studies Vol. 11 No. 3 (2023): December: Applied Finance and Business Studies
Publisher : Trigin Publisher

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.35335/ijafibs.v11i3.138

Abstract

The research aims to analyze the comparison between financing and Mudharabah in Islamiceconomics. The main issue raised in the research is how both financing principles play a rolein supporting investment, business development, and financial inclusion in accordance with Islamic law. The methodology used in the research is the analysis of relevant literature anddata on financing and Mudharabah in Islamic economics. The research findings show that thetwo financing principles have different characteristics, benefits, and risks. is a form ofcooperation or partnership in which profits and risks are shared as agreed, while Mudharabahis an investment cooperation in which one party provides capital and the other party provideslabor and management. provides an opportunity to share profits and risks fairly between allparties involved, while Mudharabah provides an opportunity for investors to earn profitswithout being involved in operational management. A deep understanding of the differencesbetween the two financing principles is essential in informing Islamic finance policies anddecisions. The decision of choosing the type of financing is influenced by the understandingof risks and returns, business context, and financial objectives. In addition, transparency andclear written agreements, active monitoring by the party providing the capital, and shariacompliance are also important factors in the implementation of both financing principles