Islamic Finance

Islamic finance is a Sharia-compliant financial system that operates according to Islamic principles, prohibiting the payment or receipt of interest (riba) and avoiding investments in businesses considered haram (forbidden), such as alcohol, gambling, or weapons. Instead, it emphasizes profit-and-loss sharing, asset-backed financing, and ethical investments. Popular Islamic financial products include Murabaha (cost-plus financing), Mudarabah (profit-sharing), Musharakah (joint venture), and Ijara (leasing). Islamic finance promotes social justice, transparency, and shared risk, making it an ethical alternative to conventional banking.