This article was published in 2005. For a 2019 update from
Al Tamimi & IFLR, click here.
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The principle that income can be derived from the time value
of money (that is, by placing money at the disposal of another
person and receiving an increased return at some stage in the
future) has been a part of conventional financing for time
immemorial. We know it as interest on loans and it has been as
much part of our lives as earning a daily living.
Interest on a loan remains payable, irrespective of whether
the cause or venture for which the money was advanced is
successful or not. It means that a person can make money out of
the mere fact that they have money and another has not. Some
may say that there is an inherent injustice in a system where
money is seen as...