Bankers and lawyers familiar with Shari’a law know that Islamic principles prevent the practice of usury – lending money in return for interest. Over the years methods have been developed which overcome this hurdle to doing business in Islamic jurisdictions, such as stipulating that the provider of the Wnance does so as a participant in the proWts of the business rather than as a recipient of interest. The transaction can be structured so that the economic outcome is the same.
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