Discover the fundamentals of Islamic finance and explore the world of halal investments. This category delves into the principles that differentiate Islamic finance from traditional financial systems, offering insights into various types of halal investment opportunities. Learn how to invest in halal assets in compliance with Sharia law, and understand the ethical considerations that underpin Islamic financial practices.
The Islamic Dow Jones Index emerged in response to a rising demand for Sharia-compliant investment opportunities. It filters companies based on Islamic principles, excluding sectors like alcohol, gambling, and interest-based finance. This index has become a global benchmark for ethical investors seeking to merge financial growth with religious guidelines. Since its inception, it has been […]
Halal stock market investing offers a unique way to align financial goals with moral principles. It is an approach built upon Islamic guidelines, which prioritize social responsibility and prohibit exploitative practices. Investors who follow these teachings aim to avoid industries linked to gambling, alcohol, and interest-based financing. By selecting stocks that comply with Sharia principles, […]
Mudaraba is a distinct financial partnership in Islamic finance. It involves two key parties: an investor (rab-ul-mal) who provides capital and a manager (mudarib) who contributes expertise. Unlike conventional financing, Mudaraba rejects interest-based transactions. Instead, profit is shared according to a pre-agreed ratio, and losses are borne by the investor unless mismanagement or fraud is […]
Zakat (or zakah) is a fundamental pillar of Islam and involves donating a specific portion of one’s wealth to support those in need. It is not merely an act of charity; it is an obligatory duty for Muslims who meet the criteria of sufficient wealth. Zakat underpins the social fabric of Muslim societies, ensuring that […]
Islamic principles guide believers in every aspect of life, from personal conduct to economic transactions. They are derived from the Quran, the Hadith, and the interpretations of scholars over centuries. These principles offer a moral framework designed to foster justice, compassion, and devotion. While rooted in spirituality, they also shape social and economic structures, reminding […]
Islamic banks operate in accordance with Shariah law, offering an alternative to conventional financial institutions. They highlight morality, fairness, and tangible economic activity in every transaction. Unlike traditional banks that charge or pay interest, Islamic banks adhere to the principle of profit-and-loss sharing, ensuring financial relationships align with religious guidelines. Origins and Key Concepts Although […]
An Islamic economy is rooted in principles drawn from the Quran and the Sunnah. These teachings emphasize moral responsibility, social justice, and a strong link between ethical values and economic transactions. When we talk about an Islamic economy, we focus on justice, fair distribution of resources, and a sense of accountability before God. Unlike systems […]
Over the past few decades, Islamic banking has become one of the fastest-growing segments of the global financial industry. Whereas in the mid-20th century, Sharia-based principles were mostly confined to local Muslim regions, today Islamic banking in the global financial system is steadily carving out a niche, attracting leading market players and investors. This article […]
When we talk about Islamic finance, large-scale projects, investments, government financing, and sukuk often come to mind. However, a key part of the Sharia-based economy also involves the daily financial life of ordinary people. Islamic finance for individuals addresses how Muslims (and not only) can apply Sharia principles to personal money management, banking operations, and […]
Sukuk have emerged as one of the fastest-growing and most in-demand instruments in Islamic finance worldwide. Governments, corporations, and various organizations use sukuk to raise capital under Shariah-compliant structures that avoid riba (interest) and support genuine economic activity. As a result, the issuers of sukuk in the global market are remarkably diverse—ranging from major Gulf-based […]