Human Capital Mudarabah

The Coming Revolution

Did you catch it? The aforementioned verses from the generous Quran describe a consumer financing product that could help millions of people across the globe escape interest-bearing debt and enter more equitable financing arrangements.

Human Capital Mudarabah in the Quran

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.

3 Reasons Why Mudarabah Financing is More Ethical Than Loans

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.