Interest on capital and land rent: analysis from the perspective of the partner model of finance

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Doklady Bashkirskogo Universiteta. 2017. Volume 2. No. 6. pp. 871-876.

Authors

Zulkarnay I. U.*
Bashkir State University
32 Zaki Validi Street, 450074 Ufa, Republic of Bashkortostan, Russia

Abstract

The article gives a comparative analysis of interest on bank loans and rental payments on land from the perspective of the Islamic financial model, that completely prohibits the interest (Riba), but permits rent to land. Economic reasons for this decision are shown, economic relations of agents of both schemes are described in the framework of agent-oriented modeling of social processes.

Keywords

  • Islamic finance
  • Islamic model of financial activity
  • Islamic financial instruments
  • agent-based modeling
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