Islamic Finance

Islamic finance:

Overview:

“Islamic Finance is governed by the Sharia (Islamic Law), sourced from the Quran and the Sunnah”.

The term “Islamic banking” refers to a system of banking or banking activity that is consistent with Islamic law (Sharia) principles and guided by Islamic economics. In particular, Islamic law prohibits usury, the collection and payment of interest, also commonly called Riba in Islamic discourse. In addition, Islamic law prohibits investing in businesses that are considered unlawful, or haram (such as businesses that sell alcohol or pork, or businesses that produce media such as gossip columns or pornography, which are contrary to Islamic values). Furthermore the Sharia prohibits what is called “Maysir” and “Gharar”.

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