Date of Award
Spring 2017
Thesis Type
Open Access
Degree Name
Honors Bachelor of Arts
Sponsor
Dr. Eric Smaw
Committee Member
Dr. Michelle Boulanger
Committee Member
Dr. Eren Tatari
Abstract
Income share agreements (ISAs) are a necessary option to finance higher educations. ISAs eschew fixed payments for the flexibility of income based repayments between a student and an investor. ISA contracts stipulate that, in return for educational financing, a student promises a percentage of their future income for an agreed upon time frame. Should the student not possess sufficient income, their obligations are $0.00. Among the fastest growing financial sectors is Islamic financing. Islamic finance abhors gambling, deception, and usury and upholds the public good as its ultimate aim. As Islamic finance grows globally, an opportunity to offer shari’ah compliant student financing can be captured with income share agreements. Income share agreements comply with shari’ah values because they avoid the three corruptors of Islamic finance, gharar (deception), maisir (gambling), and riba (usury), and facilitate maslahah, or public good.
Recommended Citation
Fadel, Kamil, "Quran & Capitalism: The Compliance of Income Share Agreements with Shari'ah" (2017). Honors Program Theses. 48.
https://scholarship.rollins.edu/honors/48
Rights Holder
Kamil Fadel
Included in
Finance and Financial Management Commons, International Business Commons, Labor Relations Commons