Academic entrepreneurship and Muamalat

Risk and money in commercial transactions from an Islamic perspective

Matthew Witbrodt, Rohimi Shapiee

Research output: Contribution to journalArticle

Abstract

Academic entrepreneurship involves the entrance of academic scientists into commercial ventures and activities. The basis of any relationship founded upon commerce is rooted in the desire of both parties involved in the exchange to benefit from the transaction. Shariah law establishes guidelines and principles to be applied to commercial transactions in order to ensure that transactions are compliant with Islamic morals and teachings. Focusing upon the role of contemporary money in commercial transactions, the present article distinguishes between the Islamic economy depicted by Shariah and the contemporary economy, with particular emphasis upon the function and nature of contemporary fiat money-based currencies. The use of contemporary moneys in contemporary domestic and international commercial transactions is considered in light of Islamic prohibitions on gharar, or risk and uncertainty, with particular emphasis on the effects of inflation and international currency exchange ratio fluctuation on the value function of contemporary moneys. In conclusion, policy implications and recommendations concerning commercial exchanges arising from academic entrepreneurship are considered in light of seeking to minimize, if not eliminate, risks arising due to the nature of the moneys utilized in contemporary commercial exchanges.

Original languageEnglish
Pages (from-to)21-44
Number of pages24
JournalPertanika Journal of Social Science and Humanities
Volume22
Issue numberJanuary
Publication statusPublished - 1 Jan 2014

Fingerprint

entrepreneurship
transaction
money
currency
economy
commerce
inflation
fluctuation
Academic entrepreneurship
Entrepreneurship
uncertainty
Law
Teaching

Keywords

  • Academic entrepreneurship
  • Commercial exchanges
  • Fiat money
  • Gharar
  • Muamalat

ASJC Scopus subject areas

  • Arts and Humanities(all)
  • Business, Management and Accounting(all)
  • Economics, Econometrics and Finance(all)
  • Social Sciences(all)

Cite this

Academic entrepreneurship and Muamalat : Risk and money in commercial transactions from an Islamic perspective. / Witbrodt, Matthew; Shapiee, Rohimi.

In: Pertanika Journal of Social Science and Humanities, Vol. 22, No. January, 01.01.2014, p. 21-44.

Research output: Contribution to journalArticle

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