Islamic Finance

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Islamic Finance

Islamic Finance a.k.a Shar’iah finance is an umbrella term covering a wide variety of finance – deposts, savings, investing and trade – that are aligned with the principles of Islam. One core tenet of Islamic Finance is that money itself can have no value in and of itself; it is merely a medium of exchange. As such, the concept of interest paid on money is not accepted. Instead, Islamic Finance is based on the notion of partnership, which supports profit-sharing and risk-sharing on underlying business transactions. Islamic Finance also excludes financing of alcohol, tobacco, and gambling, which are seen as harmful.

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