The optimal model for the implementation of partnership contracts in the Islamic financial system

Abstract

Improving the finance has an undeniable effect on production, employment and economic growth. The Islamic finance system consists of institutions, tools and financial markets. This system is a subset of Islamic economy and plays its role with Islamic financial instruments. The goals of efficiency, justice and stability are achievable with the ideal model of implementing cooperative contracts. In this plan, investment institutions perform the role of transferring funds with Islamic financial instruments and meet the investment demand of entrepreneurs. The proposed model in this research had presented by descriptive-analytical and topic discovery methods. The hypothesis of this research was practical implementation of partnership contracts in the framework of Islamic jurisprudence leads to the coordination between the existing and financial sectors of the economy. Based on the research results, this model is a new structure of the Islamic financial system that provides the criteria of Islamic financing, through which facilities related to partnership contracts are separated from the banking system and entrusted to investment institutions. The facility needs of economic enterprises were classified in raising the capital, start-up and the production flow and working capital. Meeting these needs is one of the requirements of the model. The desired model is a framework for the implementation of the new banking law, and according to the existing legal capacities it should be implemented with a specific planning and schedule.

Keywords

• islamic financial system
• partnership contracts
• financing methods
• islamic banking