There are two main needs of people with their money. First is short term with the Goal of safe keeping which can be done using “Freedom Account”

The Second requirement for people is for long term money, wherein they are willing to invest for long term in hopes of Income and Capital appreciation.

For this the government should implement “Venture Account”

In a Venture account the Bank will offer long term investment options to investors.

The investors can buy units of either industry specific funds of a particular Industry segment like (Real Estate, IT, Construction, Transport, Retail, Small Trades, Startups)

For each industry the Bank will raise funds by way of an initial public offer. Once subscribed, the fund will be listed on the stock exchange to enable liquidity for investors by selling them to others desiring to buy the shares at the market rate. There should be strict restrictions on short selling and use of Derivatives.

The fund will charge a management fees only on the amount of funds actually invested, and not on the funds held as cash.

The fund will be used to mostly own 100% of a project or a part percentage provided there is strict restriction on use of borrowed funds for that project, even by other shareholders.

Examples of funds could be a Housing fund, which builds buildings and rents them, so the rent is the income, and taxes and other things are expenses, so after deduction of expenses from the rent the fund would declare cash dividend.

The fund can buy large agricultural land and can hire people to cultivate on it and the profits would be shared with the unit holders

Other example could be the fund can acquire say 20% ownership in Oil Company making sure it doesn’t deal in Riba in any way

These and many other options can be available.

The investment funds can also be offered by way of Tax Deferral, Retirement, or Education schemes.

The Shares of Venture Account will be listed on the Stock exchange. The depositors cannot get their funds refunded from the “Venture Account” They can only get their money back by selling their shares on the stock exchange so only the long term money will be invested in this account.

For small businesses, the Bank will hire professionals who can assess individual projects before making the funding decision, as well as provide guidance to businesses on making the business idea successful. e.g. The Small Restaurant funding department would have officers who have experience with setting up restaurants and know the process from start to finish, so if someone comes to ask funds for Restaurant business then they can first determine if the candidate is the right fit for the funding and once approved, the officers can help the business become successful very easily.

Once profitable the candidate can choose to buy the Banks shares in the business at the value of that time, or the Bank can choose to sell it to some external investor.

The dividends and capital gains they get from all this can be distributed as dividends to the investors of “Venture Account”.

Some other examples would be funding the construction of a toll bridge or highway, where the toll collected would be a source of regular income.

The Fund can purchase an entire power generation plant and make sure no aspect of Riba is involved and then earn income from sale of electricity.

The investors can also choose a Diversified Fund of Fund option which would invest in multiple funds to diversify the investments.

Gradually the economy of the entire country would start running without Riba.