An Analysis of the Business Partnership in Islamic Economic System
The Islamic system is based on interest free economy, because Interest or Usury is totally forbidden in Islam and regarded a serious crime and a challenge to the authority of Almighty Alla’h. As we know that Islam is a religion of Peace and harmony having rules and regulations that govern all aspects of life. The trading System in Islam is the best option. The last Prophet of Islam Hazrat Muhammad (SAW) was part of the trade profession (Business), so the trading system is inherited by Muslims. Interest or usury is disallowed; exploitation is discouraged and common welfare of all human beings given top priority. Business and trade partnership is allowed in Islam as long as profit and loss equally shared. In the Islamic economic system companies working on the basis of equal partnerships enjoy great respect. In the time of the Holy prophet, business based on partnership system was allowed and people in Mecca and Madina practised it at a large scale.