A set of strict rules that forbid making or receiving
interest payments. To get around this prohibition, trade financing is obtained
by buying inventory that will be resold at a pre-determined price on a future
date, which is called Murabaha. Financing for capital projects is called
Musharaka, which is funding by two or more parties who may be active managers
in a partnership. Losses are shared on the basis of the capital contribution.
Profits may be shared in any way the partners decide. See also Istisna
, and Riba