Calculated and Uncalculated Risks of Financing for Agro Projects

• Main Authors: Ab. Aziz, Muhammad Ridhwan, Mohamad Yusoff, Muhammad
• Format: Conference Paper
• Language: en_US
• Published: 2015
• Subjects: Calculated Risks; Uncalculated Risks; Agro Projects; Agro-entrepreneurs; Islamic Financing
• Online Access: http://ddms.usim.edu.my/handle/123456789/9424

Islamic financing in agriculture is aimed to finance agriculture-based projects and to prevent any involvement of haram elements by using banking and financing instruments which is Shariah –Complaint among Argo entrepreneurs.However there are several calculated and uncalculated risks that had to be faced by agro entrepreneurs in their agro projects which may force them to accommodate possible loss from effect of risks using the same fu nding. The methodology of this paper is through quantitative search based on questionnaires to identify patterns of agro-enterepneurs facing various types of risks. The general finding of this paper shows that ago-entrepreneurs faced various risks, which also shows there is a need to have proper Shariah-compliant financing for their agro projects through Islamic banks.