Research Activities

Research Projects 2026

A study on sherkat contracts and their role in financing Iranian businesses

Outline

Many Iranian private enterprises finance their operations and conduct business through personal agreements between individuals, known as "sherkat," rather than through public stock offerings or bank loans. "Sherkat" means "partnership" and is a legally recognized form of contract under Iranian civil law, based on Islamic legal principles.

Iranian enterprises tend not to grow large, and mergers and acquisitions through capital investment or collaboration are rare. However, supported by a vibrant domestic market with over 90 million people—one of the largest in the Middle East—business activity remains extremely active. What factors lead business owners to prefer this type of informal investment relationship? How does the traditional business ethics rooted in Islamic law influence this?

This study analyzes sherkat contracts from both the perspective of economic practices and related legal frameworks, shedding light on the characteristics of Iranian enterprises ' funding methods.

Period

April 2026 - March 2028

Members
Role Member
[ Organizer ] Iwasaki, Yoko

*Affiliations are as of April 2026.

Expected Outcome
  • The Ajia Keizai