ISLAMIC FINANCE
ISLAMIC FINANCE Islamic finance refers to financial activities that are conducted in accordance with Sharia (Islamic law) . The primary principles of Islamic finance are the prohibition of riba (interest) , gharar (excessive uncertainty) , and haram (forbidden) investments . Instead of earning income through interest, Islamic finance promotes profit-sharing, risk-sharing, and ethical investment. Key Principles of Islamic Finance Riba (Interest) The charging of interest on loans is strictly prohibited in Islamic finance, as it is seen as exploitative. Financial transactions must be free of interest, and returns must be based on the underlying asset’s performance. Maysir (Gambling/Speculation) Any transaction that involves excessive uncertainty, speculation, or gambling is prohibited. Investments must be backed by tangible assets or real economic activity. Halal (Permissible) Investments Investments must not involve businesses that deal in alcohol, pork, gambling, or any activities...