Capital and Profit Sharing in Islamic Equity Financing

Due to significant changes that have taken place in the nature and essence of money and monetary value, and the dominance of interest-based debt financing, the nature of capital and sharing of profit and loss have become complex issues. The book analyses in detail the practical relevance of these in the operation of Islamic financial institutions, and attempts to provide some new insight on the relevant shari‘ah regulations. It studies capital in joint ventures financed by Islamic banks, and scrutinises the method currently used by Islamic banks for determining the profit sharing ratio between the bank and the client.