Question: Explain why leasing is consistent with Islamic financing principles. [Challenge: Explain what is meant by a musharaka transaction in Islamic finance. Give an Example to

Explain why leasing is consistent with Islamic financing principles.

[Challenge: Explain what is meant by a ‘musharaka’ transaction in Islamic finance. Give an Example to illustrate your answer.]

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Islamic financing principles are rooted in Shariah the Islamic law which prohibits the payment or receipt of interest riba and promotes economic activ... View full answer

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