Islamic finance
- PDF, 4 pp.
Islamic financing vehicles
Basic principles and an industrial fund
This issue explores Islamic finance as a funding channel for Lebanese SMEs. It sets out profit-and-loss sharing and the prohibitions on interest, uncertainty and gambling, and describes trade instruments (Murabaha, Ijara, Istisnaa, Salam) and equity instruments (Mudaraba, Musharaka). It notes that Lebanon's four Islamic banks focus on Murabaha, constrained by central bank rules and the lack of a bond market, and argues equity structures could mobilise household cash.
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