So a few months ago I was doing research on Islam’s stance on insurance. I was extremely disappointed to see how little scholarship was done
The average Muslim thinks conventional insurance is Haram, Is this true?
When it comes to non-lending activities, Islam is (generally) interested in ensuring that these activities can be made into viable businesses and therefore the burden of proving the absence of hardship when charging a late penalty is dropped. A lessor may charge a lessee a penalty if their payments are late just as a utility company may charge a customer for a late electric bill.
I’ve been advocating for the adoption of HCM agreements in the Muslim community and while the default ruling on anything in Islam is permissibility, it helps to have explicit support for an idea in the Quran or Sunnah (the life and sayings of the prophet Muhammad peace be upon him). I believe there is such support for Human Capital Mudarabah in the Quran.
A sample of some of the nonsense I’ve had to deal with why advocating for Human Capital Mudarabah
When associating a particular product with Islamic finance, one must address how the product serves or at least does not run afoul of any ethical considerations. Here are 3 reasons why I think HCM agreements are superior to debt-based financing from an ethical perspective.