Islam and Personal Income Sharing Agreements: A Preemptive Strike Before The Coming Revolution

Practical Islamic Finance

An Income Sharing Agreement (or “ISA”) is a financial vehicle in which an individual or organization gives a fixed amount of money to a recipient who, in exchange, agrees to pay back a percentage of his/her income for a fixed number of years.(1)

For the past five years I have worked on familiarizing consumers in general and the Muslim community in particular with the usefulness of using Income-sharing agreements.

While advocating for Income-Sharing Agreements, like with all new products and ideas, I came across many nay-sayers that questioned the product’s wisdom and fairness.

I will attempt to answer all of the objections I’ve encountered so that the reader is armed with the knowledge they need in case someone tries to convince them that ISAs are unfair or unIslamic.

I received the comments below (In bold) in response to requests for opinion on an income-sharing agreement I set up with my…

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