Islamic finance: Difference between revisions
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imported>Doug Williamson m (Amended as per Glossary for Wiki alignment) |
imported>Doug Williamson m (Spacing 22/8/13) |
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Islamic finance models therefore operate on the basis of risk sharing, to encourage operational investments which may be of benefit to the community. | 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 and gambling are not allowed. | 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]] | * [[Riba]] | ||
* [[Sukuk]] | * [[Sukuk]] | ||
Revision as of 14:02, 22 August 2013
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 and gambling are not allowed.
