Islamic finance Islamic Studies / Islamic finance


Islamic finance

Islamic finance is a financing approach based on the principles and controls of Islamic law (Islamic law is the divine law that governs the lives of Muslims and determines their behavior in all aspects of life). Islamic finance is a distinct approach from traditional finance, which uses interest, commissions, and usurious transactions.

Charities and social projects

Investors

Companies and institutions

Islamic finance was distinguished by focusing on social justice and taking into account the contribution to achieving the public benefit. Islamic finance follows some basic principles, including:

 

Prohibition of Riba (Interest): In Islamic finance, any type of interest and usury is prohibited. Dealers may not charge interest on the borrowed amounts.

 

Risk Sharing: Islamic finance lenders share the risk with the dealers, and must share profits and losses fairly as per an agreement between them.

 

Prohibition on Trading in Prohibited Items: In Islamic finance, it is prohibited to deal with Sharia prohibited items such as alcohol, pork, and other haram items.

 

Prohibition of unfair interests: All financing transactions must be legitimate and in compliance with Sharia rules.

 

Common Islamic financing instruments include mudaraba, musharaka financing, ijara, and murabaha (profit sharing). Islamic finance is widely used in a variety of industries including banking, real estate finance, insurance, and investment funds.

 

Islamic financial institutions, such as banks, Islamic insurance companies, investment funds and other financial companies, are entities that provide Islamic finance services to individuals, companies and institutions that wish to adhere to Sharia principles.

Introduction to Islamic Finance

Fundamentals of Islamic jurisprudence and financing provisions

Islamic finance and international trade

Islamic finance sukuk

Islamic finance and insurance

Islamic finance and investment




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