Source Evidence & Context

Conclusion

Sharia-compliant finance offers a toolkit that can be adapted to circular business models without forcing circularity into conventional interest-based lending. Leasing, trade-based financing, partnership structures, and manufacturing contracts can each support different parts of the circular loop—especially when contracts are written with clear specifications, transparent risk allocation, and a focus on real economic activity. For businesses pursuing circularity, the most practical path is to start with the operating model (how assets circulate) and then select the Sharia structure that naturally matches the underlying transactions.

References

• No external sources used.