Profit margin under Islamic law
Profit margin under Islamic law
Salim ur Rahman Najeeb Zada
study concludes that Islam does not fix a specific rate of profit to be charged. It only gives some general rules and guidelines about price charging. Leniency, brotherhood and mutual help is recommended by Islam. The rest should be left to market mechanism. If the contracting parties agree, there can be any rate of profit fixed in the contract. However, one must observe all the legal and ethical values and commands of Islam.
Details of study-http://journals.uop.edu.pk/papers/Profit%20Margin_An%20Islamic%20Perspective.pdf
Salim ur Rahman Najeeb Zada
study concludes that Islam does not fix a specific rate of profit to be charged. It only gives some general rules and guidelines about price charging. Leniency, brotherhood and mutual help is recommended by Islam. The rest should be left to market mechanism. If the contracting parties agree, there can be any rate of profit fixed in the contract. However, one must observe all the legal and ethical values and commands of Islam.
Details of study-http://journals.uop.edu.pk/papers/Profit%20Margin_An%20Islamic%20Perspective.pdf
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