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Explain the underlying philosophy used in islamic

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Reference no: EM133492760

Question

Based on Islamic guidelines, interest cannot be charged on loans. Similarly, conventional insurance practices can't be used as a part of business dealings.

Explain the underlying philosophy used in these Islamic guidelines. Is the idea that the lender must share in the borrower's risk reasonable, or does that approach make it impossible for a company to do business in an Islamic-based country?

Reference no: EM133492760

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