MBitcoiner on Nostr: The Qirad was a popular financial instrument used during the time of Prophet Muhammad ...

The Qirad was a popular financial instrument used during the time of Prophet Muhammad (pbuh), where investors and entrepreneurs pooled resources, typically in the form of a caravan, to earn profit. The Qirad allowed for the coordination and private ownership of venture capital, profit sharing agreements, and implementation of a corporate governance structure.

Imagine being able to grow your wealth through investing in shares of a caravan consisting of a portfolio of commodities like barley and leather, handled by traveling merchants and carried on the backs of camels!

Call this whatever you want, but this is actual capitalism.

Excerpts below from the book: Early Islam and the Birth of Capitalism by Benedikt Koehler