Tag Archives: Halal project finance

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Halal project finance – for the benefit of economy and society

During recessionary times, one might ask a question: Is it possible to combine profit with business ethics and still earn money? When even those too big to fail can feel threatened and weakened by the contemporary state of the global economy, one should direct him or herself towards a way of doing business that respects higher moral values. Halal project finance can be seen as such an example.

Halal project finance is a project finance that is compliant with Shari’ah principles. In terms of project finance in general, one can say that it is one of the most popular modes of financing/investment. For example, Public Private Partnership (PPP) financing is where a state is involved and where the purpose of such financing comes down to providing the society with a public infrastructure facility like a bridge or a hospital. In conventional project finance (that is not the halal one), the main part of business is profiting from the investment itself and transferring risk. It means that the project itself should possess the ability to repay itself and also to divide the risk among the parties involved. More…

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