Islamic economy

Interest-free Investment (IGP)

Income-Generating Partnerships

Some households need not credit but capital — a small stake in an enterprise that they already have the skill, time, and network to run. The IGP programme provides that capital on a partnership basis, in line with Islamic principles of trade: the institution shares the risk of the venture and a share of the profit if the venture succeeds, and bears its share of the loss if it does not.

This is distinct from interest-bearing lending of any kind. The institution does not receive a fixed return on capital; the return depends on the performance of the underlying work. Profit and loss are accounted for transparently and shared on previously agreed proportions.

IGP is operated alongside, and is complementary to, our Qard al-Hasan programme. Loans without interest serve consumption smoothing and small working capital; risk-sharing partnerships serve household-scale enterprise.

Capital that shares risk is capital that has remembered what money is for.