MBitcoiner on Nostr: Interestingly, in Venice, they'd send convoys of ships packed with supplies to ...

Interestingly, in Venice, they'd send convoys of ships packed with supplies to conduct commercial enterprise overseas. Investors and entrepreneurs would pool resources and invest capital to share in profits from these convoys. This financial instrument is called a Commenda, and the idea most likely originated from the concept of a Qirad. These Commenda also employed a corporate structure with legal agreements between managers and investors, much like Qirads used in early islamic societies

Read excerpts below from the same book 👇

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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