- Knowledge Base
- Shariah Compliance
According to Islamic Finance, all Investors are liable to earn the same returns, but the projects show variable returns. How do you justify that?
Returns in Islamic Finance
In a Mudarabah or Musharakah contract, all investors are represented as one unit in the contract. However, some investors (Lead Investors) get 1% higher returns as Hiba (Gift) from the Project Developer to encourage and thank investors who are willing to put a larger amount of investment in the project.