Cizakca, Murat (2010): Domestic borrowing without the rate of interest: gharar and the origins of sukuk.
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All governments need to borrow from the public. Known as domestic borrowing, this is not an easy process. For Muslim countries, where interest is prohibited, this process becomes extra ordinarily difficult. I will start this article by examining the concept of uncertainty, gharar, in Islam and then move on to the origins of Islamic domestic borrowing, which is referred to in modern parlance as sukuk. The value of modern sukuk issued at the end of 2009 has reached roughly USD 100 billions. While most people think that this is a newly invented instrument, the institutional roots can be traced back for centuries.
|Item Type:||MPRA Paper|
|Original Title:||Domestic borrowing without the rate of interest: gharar and the origins of sukuk|
|English Title:||Domestic borrowing without the rate of interest: gharar and the origins of sukuk|
|Keywords:||gharar, domestic borrowing, public borrowing, sukuk, esham, cash waqfs|
|Subjects:||N - Economic History > N0 - General > N00 - General
N - Economic History > N2 - Financial Markets and Institutions > N25 - Asia including Middle East
B - History of Economic Thought, Methodology, and Heterodox Approaches > B2 - History of Economic Thought since 1925 > B25 - Historical ; Institutional ; Evolutionary ; Austrian
|Depositing User:||Murat Cizakca|
|Date Deposited:||11. Jun 2010 01:03|
|Last Modified:||11. Jan 2014 08:14|
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