Venture capital : a potential model of musharakah

Abstract EN

Venture capital is a form of active investment through equity-based instruments.

Venture capital financing is praised for its role in promoting growth while maintaining financial stability.

From an Islamic point of view, such arrangements appear very close to the model of musharakah which Islamic banks are seeking, but many in reality failed to adopt.

Venture capital is also well suited to Islamic countries because of its positive impact on growth and development.