Welcome to the world of Islamic finance, where ethical investing meets contemporary financial markets. In this article, we will dive into the concepts of Islamic finance, emphasize its merits, and help you on steps to take. Whether you’re a seasoned investor or just curious, this introductory post will provide you valuable insights.
What is Islamic Finance?
Islamic finance is a framework that adheres to Sharia principles. It disallows exploitative gains, promotes risk-sharing, and centers around value-driven projects. Unlike conventional finance, Islamic finance is built on moral guidelines.
Key Principles of Islamic Finance
Prohibition of Riba (Interest): Gaining interest is strictly forbidden in Islamic finance.
Risk-Sharing: Financial transactions should involve mutual responsibility.
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Asset-Backed Investments: Investments must be linked with real assets.
Prohibition of Haram Activities: Engaging in busin
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