Survey of Investment in Profit- loss Sharing

Investment is important as one of the significant part in all economic system. Since Islam prohibits any trade base on usury so the survey of another system for Islamic communities is necessary. Profit-loss sharing (PLS) system is one of the opportunities among Islamic economist to be discussed.When PLS comprehensive that the given profit of sharing wouldn’t be is define and versus rate of sharing for two parts was predefined. We can study this system from two aspects: Musharakah & Mudarabah. One of the advantages of this system is to share the capital supplier in profit and loss so the motivation for investment increases. On the other hand because the contracts are based on sharing system then the efficiency of projects can be examined well. In this system investment demand isn’t infinitely and demand accrued when profit comes to maximized level. In sharing contract when marginal profit rate is equal to average profit rate profit is maximized.