The "City of Two Continents": Bosphorus Bridge in Istanbul connects Europe and Asia. Image courtesy of Shutterstock.

Introducing venture capital
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Islam prohibits risk shifting and encourages risk sharing. Consequently, Muslims have developed over the centuries a highly sophisticated know-how of risk sharing partnerships which was the envy of the world. When Europe borrowed this know-how from the 10th century onwards, it entered into the era of “commercial revolution”.

Private sector risk sharing needs to be undertaken by non-bank financial institutions. Western experience since the Second World War indicates to venture capital as the most pertinent non-bank financial institution. It has been shown that venture capital is in perfect harmony with the teachings of the classical sources of Islam. Indeed, this American institution, the financier of such companies as Apple, Fed Ex, Amazon etc., has a structure that is rem...