IDEAS home Printed from https://ideas.repec.org/p/ris/irtiwp/2018_005.html
   My bibliography  Save this paper

The Basis for Legitimate Entitlement to Profit in Islamic Law

Author

Listed:
  • Güney, Necmeddin

    (Necmettin Erbakan University Faculty of Divinity, Konya, Turkey)

Abstract

This paper is intended to investigate the basis for legitimate profit in Islamic law and compare it to the theories held by modern conventional economics regarding the cause of profit. This study shall use the theoretical framework of the Hanafi concept of damān (guarantee) and apply it to the cases of fixed revenue and profit. Finally, this paper aims at exposing how the Hanafi formulation of damān, along with capital and labor, can be useful in explaining and determining the basis for a legitimate profit in Islamic law.

Suggested Citation

  • Güney, Necmeddin, 2018. "The Basis for Legitimate Entitlement to Profit in Islamic Law," Working Papers 2018-5, The Islamic Research and Teaching Institute (IRTI).
    • Handle: RePEc:ris:irtiwp:2018_005
    as

    Download full text from publisher

    File URL: http://www.irti.org/English/Research/Documents/WP/484.pdf
    File Function: Full text
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Zubair Hasan, 1983. "Theory of Profit: The Islamic Viewpoint نظرية الربح: وجهة النظر الإسلامية," Journal of Research in Islamic Economics, King Abdulaziz University, Islamic Economics Institute., vol. 1(1), pages 3-14, January.
    2. Hasan, Zubair, 1983. "Profit Theory: the Islamic viewpoint," MPRA Paper 3012, University Library of Munich, Germany.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Zubair Hasan, 2016. "Risk-Sharing: The Sole Basis of Islamic Finance? Time for a Serious Rethink المشاركة في المخاطر: الأساس الوحيد للتمويل الإسلامي؟ حان الوقت لإعادة التفكير الجدي في الموضوع," Journal of King Abdulaziz University: Islamic Economics, King Abdulaziz University, Islamic Economics Institute., vol. 29(2), pages 23-36, January.
    2. Hasan, Zubair, 2014. "Risk sharing versus risk transfer in islamic finance," MPRA Paper 62810, University Library of Munich, Germany, revised Mar 2015.
    3. Hasan, Zubair, 2008. "Theory of profit from Islamic perspective," MPRA Paper 8129, University Library of Munich, Germany.
    4. Hasan, Zubair, 2016. "Risk-sharing the sole basis of Islamic finance? time for a serious rethink," MPRA Paper 72252, University Library of Munich, Germany, revised 15 Apr 2018.
    5. Hasan, Zubair, 2014. "Risk sharing versus risk transfer in Islamic finance: revised," MPRA Paper 62826, University Library of Munich, Germany, revised Mar 2015.
    6. Hasan, Zubair, 2015. "Risk-sharing: the sole basis of Islamic finance? It is time for a serious rethink," MPRA Paper 66895, University Library of Munich, Germany.
    7. Hasan, Zubair, 2015. "Risk sharing versus risk transfer in Islamic Finance: A critical appraisal," MPRA Paper 65028, University Library of Munich, Germany, revised May 2015.
    8. Hasan, Zubair, 2015. "Risk sharing versus risk transfer in islamic finance," MPRA Paper 62847, University Library of Munich, Germany, revised Mar 2015.
    9. Tarik AKIN & Abbas MIRAKHOR, 2016. "Efficiency with Rule-Compliance: A Contribution to the Theory of the Firm in Islamic Economics," Journal of Economics and Political Economy, KSP Journals, vol. 3(3), pages 560-574, September.
    10. Asad Raza Abidi & Fayyaz Raza Chandio & Ali Hassan Halepoto & Faiz M.Shaikh, 2014. "Cooperate Social Responsibility and Sustainable Development: A Case Study of Engro Fertilizer Dhahrki-Sindh-Pakistan," Romanian Statistical Review Supplement, Romanian Statistical Review, vol. 62(2), pages 57-67, February.
    11. Ghul Murtaza Maitlo & Zahid Hussain Kazi & Ambreen Khaskheley & Faiz M. Shaikh, 2015. "Cooperate Social Responsibility in Recent Thar Crisis," Romanian Statistical Review Supplement, Romanian Statistical Review, vol. 63(2), pages 99-104, February.

    More about this item

    Keywords

    Profit; Legitimate; Islamic law; Damān; Partnership;
    All these keywords.

    JEL classification:

    • A12 - General Economics and Teaching - - General Economics - - - Relation of Economics to Other Disciplines
    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • D33 - Microeconomics - - Distribution - - - Factor Income Distribution
    • P40 - Political Economy and Comparative Economic Systems - - Other Economic Systems - - - General

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ris:irtiwp:2018_005. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Research Division (email available below). General contact details of provider: https://edirc.repec.org/data/irisbsa.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.