Effectively using of mudaraba finance method in islamic banking per non-governmental organizations


Thesis Type: Postgraduate

Institution Of The Thesis: Uludağ Üniversitesi, Turkey

Approval Date: 2016

Thesis Language: Turkish

Student: ELMAN ABDULLAYEV

Supervisor: MEHMET SALİH KUMAŞ

Abstract:

Today, it is commonly accepted fact that conventional banking fails in the fair distribution of economic wealth and in the provision of sustainable economic development. It seems almost impossible for Islamic Banking to be a strong alternative to interest-based banking with its current practice. That is the reason why the alternative financing methods of Islamic Finance should be improved. In this context, the major obstacle for Islamic Banking to be an alternative to conventional counterpart is that it confines itself to Murabaha financing. Although the Mudaraba financing model suits better to the spirit of Islamic Banking and its historic advancement, it is observed that it is nearly not practiced or cannot be practiced. The reason behind this and major problem of Mudaraba model is having lack of enough entrepreneurs and not being able to raise them. In this sense, we believe that NGOs like MUSIAD and ASKON can contribute for the enhancement of the Islamic Banking as we have witnessed that many NGOs had considerable contributions by taking important roles in the past. This process which sort of means the integration of NGOs and Islamic Banking can be carried out in three stages.