Viability of Sharia Financing Instruments

Abstract

Current regulatory and tax frameworks of most countries in the world are inclined towards interest-bearing debt instruments. The regulatory framework designed for conventional financing may also comply with Sharia financing instruments, as both are on a par and capturing world financial markets steadily and successfully. If policymakers are inclined to achieve a certain degree of stability, a shift has to be made to provide a level playing field for equity modes of financing.