M Fahim Khan’s research while affiliated with JSI Research & Training Institute, Inc. and other places

There are several Islamic modes and techniques of financing as alternatives to interest based financing. Each of these techniques has different economic implications for those who provide the finance and for those who use the finance. This paper presents some economic dimensions of the major Islamic financing techniques in a comparative perspective. The comparative economics of these techniques has been discussed with respect to (a) their distinctive economic features, (b) role of these features in economic decision making, and (c) macro-economic consequences It has been argued that the permissibility and availability of a variety of modes of financing with different economic implications gives tremendous flexibility to individuals as well as society in the management of their financial affairs.