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Venture Capital: A Potential Model of Musharakah رأس المال المخاطر: نموذج محتمل للمشاركة

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  • Sami Al-Suwailem

    (Al-Rajhi Banking and Investment Corp. Research Center, Riyadh)

Abstract

Venture capital is a form of active investment through equity-based instruments. Venture capital financing is praised for its role in promoting growth while maintaining financial stability. From an Islamic point of view, such arrangements appear very close to the model of musharakah which Islamic banks are seeking, but many in reality failed to adopt. Venture capital is also well suited to Islamic countries because of its positive impact on growth and development. "رأس المال المخاطر" هو صورة لاستثمار نشط مبني على أدوات المشاركة في حقوق الملكية. ومما يذكر من مزاياه تشجيعه النمو مع حفظ الاستقرار المالي. ويبدو من وجهة إسلامية أنه قريب جدًا من نموذج المشاركة الذي تتوق إليه البنوك الإسلامية وإن لم يفلح أكثرها في تبنيه. و "رأس المال المخاطر" ملائم جدًا للبلاد الإسلامية لأثره الإيجابي على التنمية.

Suggested Citation

  • Sami Al-Suwailem, 1998. "Venture Capital: A Potential Model of Musharakah رأس المال المخاطر: نموذج محتمل للمشاركة," Journal of King Abdulaziz University: Islamic Economics, King Abdulaziz University, Islamic Economics Institute., vol. 10(1), pages 20-30, January.
    • Handle: RePEc:abd:kauiea:v:10:y:1998:i:1:no:1:p:20-30
    DOI: 10.4197/islec.10-1.1
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    Cited by:

    1. Hechem Ajmi & Salina Kassim & Hassanuddeen Abdul Aziz & Walid Mansour, 2019. "A Literature Review of Financial Contracting Theory from the Islamic and Conventional Overviews: Contributions, Gaps, and Perspectives استعراض أدبيات نظرية التعاقد المالي من المنظور الإسلامي والتقليدي," Journal of King Abdulaziz University: Islamic Economics, King Abdulaziz University, Islamic Economics Institute., vol. 32(2), pages 25-42, January.
    2. Khalid Rashid, 2020. "Sharīʿah Compliance of Conventional Participative Financing: A Proposed Way Forward التوافق الشرعي في التمويل التشاركي التقليدي - طريقة مقترحة," Journal of King Abdulaziz University: Islamic Economics, King Abdulaziz University, Islamic Economics Institute., vol. 33(2), pages 47-64, July.
    3. Muhammad Nouman & Karim Ullah, 2014. "Constraints in the Application of Partnerships in Islamic Banks: The Present Contributions and Future Directions," Business & Economic Review, Institute of Management Sciences, Peshawar, Pakistan, vol. 6(2), pages 47-62, October.
    4. Muhammad Nouman & Karim Ullah & Saleem Gul, 2018. "Why Islamic Banks Tend to Avoid Participatory Financing? A Demand, Regulation, and Uncertainty Framework," Business & Economic Review, Institute of Management Sciences, Peshawar, Pakistan, vol. 10(1), pages 1-32, March.
    5. Zaid Al-Aifari & Monzer Kahf, 2021. "Venture Capital Investment: Challenges and Potential Solutions استثمار رأس المال المُخاطر : التحديات والحلول," Journal of King Abdulaziz University: Islamic Economics, King Abdulaziz University, Islamic Economics Institute., vol. 34(2), pages 3-18, July.
    6. Elsayed Elsiefy, 2014. "Fundamental Requirements for Building an Islamic Venture Capital Model," Accounting and Finance Research, Sciedu Press, vol. 3(1), pages 1-55, February.

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