n Comparative and International Law Journal of Southern Africa - Islamic finance : a corollary to legal pluralism or legal diversity in South Africa and the Netherlands?
|Article Title||Islamic finance : a corollary to legal pluralism or legal diversity in South Africa and the Netherlands?|
|© Publisher:||Institute of Foreign and Comparative Law|
|Journal||Comparative and International Law Journal of Southern Africa|
|Affiliations||1 De Brauw Blackstone Westbroek, Singapore, 2 IE Business School, Spain, 3 Tilburg University, The Netherlands and 4 North-West University|
|Publication Date||Jan 2015|
|Pages||488 - 515|
In this contribution we discuss the position of Islamic finance in South Africa and the Netherlands in the light of legal pluralism and legal diversity in each legal system. Islamic finance is based on Islamic law, which is a set of moral and religious principles. According to Islamic law, the payment and receipt of riba (interest) and gharar (contractual uncertainty) are forbidden. Consequently, alternative Islamic finance contracts are structured where the financier makes a profit either through trade in tangible assets or through a profit-and-loss-sharing arrangement, instead of making profit through charging interest.
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