Islamic finance: Difference between revisions
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imported>Doug Williamson m (Spacing 22/8/13) |
imported>Doug Williamson m (Added a broader category ' other activities contrary to Islamic law' as catch-all for forbidden activities) |
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Furthermore, commercial investments should only support practices that are permitted. | Furthermore, commercial investments should only support practices that are permitted. | ||
Thus, for example, trading in alcohol, pornography, financial services, pork, armaments, tobacco and | Thus, for example, trading in alcohol, pornography, financial services, pork, armaments, tobacco, gambling and other activities contrary to Islamic law are not allowed. | ||
Revision as of 12:25, 25 January 2014
In Islamic finance and banking products, profit must be derived from commercial risk-taking and trading only, and all forms of interest are prohibited.
Islamic finance models therefore operate on the basis of risk sharing, to encourage operational investments which may be of benefit to the community.
Furthermore, commercial investments should only support practices that are permitted.
Thus, for example, trading in alcohol, pornography, financial services, pork, armaments, tobacco, gambling and other activities contrary to Islamic law are not allowed.
