Money is primarily a medium of exchange; it is not treated like a commodity whose identical units can be sold to each other for a guaranteed increase.
Islamic financing therefore connects profit with something real: ownership, trade, productive assets, goods, services or another valid transaction. partnership (مشاركة), investment partnership (مضاربة), advance-purchase sale (سَلَم) and Istisna‘ naturally create this link with the real economy.
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The Foundations of Islamic Economic Thinking
Money is primarily a medium of exchange; it is not treated like a commodity whose identical units can be sold to each other for a guaranteed increase.
Islamic financing therefore connects profit with something real: ownership, trade, productive assets, goods, services or another valid transaction. partnership (مشاركة), investment partnership (مضاربة), advance-purchase sale (سَلَم) and Istisna‘ naturally create this link with the real economy.