DocumentCode :
585178
Title :
The application of new musyarakah model in Islamic banking products
Author :
Jaffar, M.M. ; Maad, H.A. ; Ismail, R. ; Samson, A.A.
Author_Institution :
Fak. Sains Komputer dan Matematik, Univ. Teknol. MARA Malaysia, Shah Alam, Malaysia
fYear :
2012
fDate :
10-12 Sept. 2012
Firstpage :
1
Lastpage :
4
Abstract :
Musyarakah contract is a joint venture contract between two or more parties where the profit is shared according to the agreed profit sharing ratio. The new musyarakah model internalizes this concept and takes into account the investment of two parties using two different rates of profit as well as two profit sharing rates. At present, this model is the only model that uses two profit sharing rates to ensure justice in a joint venture investment. This concept can be extended in other Islamic investment or banking products that will attract more foreign investors who are keen in musyarakah products. Apart from this, it may initiate other researches to develop new products in Islamic banking/financing and investment.
Keywords :
banking; organisational aspects; profitability; Islamic banking products; foreign investors; joint venture contract; joint venture investment; musyarakah model; profit sharing rates; profit sharing ratio; Banking; Contracts; Equations; Finance; International collaboration; Investments; Mathematical model; Financial mathematics; Islamic banking; Islamic investment; joint venture; musyarakah model; profit sharing;
fLanguage :
English
Publisher :
ieee
Conference_Titel :
Statistics in Science, Business, and Engineering (ICSSBE), 2012 International Conference on
Conference_Location :
Langkawi
Print_ISBN :
978-1-4673-1581-4
Type :
conf
DOI :
10.1109/ICSSBE.2012.6396559
Filename :
6396559
Link To Document :
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