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Authors: Shamsalden Aziz Salh
Abstract: Islamic banking is one of the most important sectors that has its role in developing a country’s economy. Islamic banks have a significant role in reducing unemployment. There are several contracts and instruments that link Islamic banks with their customers. The contracts that are used by Islamic banks enable customers to be part of the Islamic banking system. Thus, people who deal with Islamic banks can benefit from these banks in different methods. The research questions of this article are what the methods and contracts that are applied by Islamic banks for reducing unemployment are and how these methods are working. In that sense, there are several contracts and transactions that enable customers to be part of the Islamic banks, for example, Musharakah transaction and Mudharabah transaction. In these transactions, financial providers share both profit and loss with the Islamic banks, which is the main method for Islamic banks to deal with their customers. Islamic banks reduce the unemployment using such transactions. In addition, some other transactions also contribute to mitigating unemployment problems. In such case, Islamic banks should apply all modes of finance, such as Musharakah, sell-and-buy- back-transaction, and so on, so that a considerable number of jobs can be created. Moreover, in this paper, the role of Islamic banks in reducing unemployment will be discussed and evaluated.
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doi:10.23918/ilic2018.47
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Journal of Law and political science
ISSN: 2079-3901
16th year , No.(23), 10 May 2018
Vol.(2): Special Issue