International Journal of Applied Finance and Business Studies
Vol. 11 No. 3 (2023): December: Applied Finance and Business Studies

Comparative analysis between Musyarakah and Mudharabah financing principles in Islamic Economics

Rezki Akbar Norrahman (Universitas Islam Negeri Antasari, Indonesia)



Article Info

Publish Date
30 Dec 2023

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

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Journal Info

Abbrev

ijafibs

Publisher

Subject

Decision Sciences, Operations Research & Management Economics, Econometrics & Finance

Description

International Journal of Applied Finance and Business Studies is published with both online and print versions devoted to provide the publication of research finding in finance and business research studies. Objectives The main goal of ijafibs is to present outstanding, high quality research ...