Islamic finance: Difference between revisions

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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 is a widely used colloquial term for sharia-compliant finance.


Islamic finance models therefore operate on the basis of risk sharing, to encourage operational investments which may be of benefit to the community.
Sharia-compliant finance arrangements are ones which are in accord with Sharia law.


Furthermore, commercial investments should only support practices that are permitted. Thus, for example, trading in alcohol, pornography, financial services, pork, armaments, tobacco and gambling are not allowed.


==See also ==
==See also ==
* [[Riba]]
* [[Finance]]
* [[Sharia-compliant finance]]
* [[Sharia-compliant fixed income capital markets instruments for cross-border transactions]]
* [[Sukuk]]
* [[Sukuk]]
[[Category:The_business_context]]

Latest revision as of 12:18, 8 March 2023

Islamic finance is a widely used colloquial term for sharia-compliant finance.

Sharia-compliant finance arrangements are ones which are in accord with Sharia law.


See also