Islamic finance, grounded in Sharia principles, is gaining momentum worldwide, and Russia is actively joining this trend. Since 2023, the country has been conducting an experiment to introduce partner financing compliant with Islamic law. This article explores the current state of Islamic finance in Russia, key achievements, challenges, and prospects for 2025, drawing on the […]
Islamic finance is not merely a system of interest-free transactions governed by Sharia law—it is a deeply ethical economic model that prioritizes justice, sustainability, and social welfare. Unlike conventional systems that often measure success solely by profit margins, Islamic finance integrates moral accountability into every financial activity, ensuring that all transactions promote the public good […]
Islamic finance has moved beyond being a niche alternative—it is becoming a key component of the global financial architecture. At the heart of this system lies sukuk, or Islamic securities, a kind of bond analogue, which are structured to comply with the principles of Sharia. Unlike conventional bonds that are based on interest (riba), sukuk […]
Islamic finance is growing due to its ethical and Shariah-compliant nature. Murabaha and musharaka are two key tools attracting investors. They differ in structure, risks, and potential returns. This article explores both methods in detail. You’ll learn their features, benefits, and drawbacks. This will help you make an informed decision. Investors can select the tool […]
Islamic finance, rooted in Sharia principles, offers an ethical alternative to conventional investing, blending profitability with social responsibility. By prohibiting riba (interest) and haram (forbidden industries), it emphasizes real assets and transparency. In 2024, the Islamic finance market reached $4.5 trillion, according to Deloitte, drawing investors seeking sustainable, value-driven solutions. Islamic securities sukuk—a Sharia-compliant bond […]
Islamic banking is a philosophy rooted in fairness, ethics, and partnership. By banning riba (interest), it focuses on the real economy, sharing profits and losses among stakeholders. This model captivates not just Muslim-majority nations but the world, offering stability amid economic storms. Ernst & Young’s 2024 report pegs Islamic financial assets above $4 trillion, with […]
Musharakah is a cornerstone of Islamic finance. It establishes a joint partnership in which multiple parties commit capital or other resources to undertake a venture. Each partner shares in profits and bears losses according to their proportional contributions. This structure eliminates interest (riba), emphasizing genuine collaboration. It also aligns with ethical principles that reinforce mutual […]
Mudaraba is a foundational contract in Islamic finance that facilitates the pooling of resources between two parties. One party provides capital (the rabb-ul-mal), while the other offers expertise and managerial efforts (the mudarib). Profits are shared according to a predetermined ratio, and no fixed interest is charged. This arrangement is rooted in Sharia principles, emphasizing […]
Islamic finance and banking have gained increasing recognition in the global financial landscape. While many assume that avoiding interest (riba) is the sole characteristic of such a system, the reality is much broader. Islamic finance draws upon Shariah principles that advocate fairness, transparency, and real economic activity. Rather than merely replacing traditional interest-based transactions, it […]
With the advent of cryptocurrencies like Bitcoin, Ethereum, and others, the financial world is experiencing a revolution. Cryptocurrencies offer new opportunities for investment and financial transactions that are independent of traditional banking systems. However, for Muslims striving to live according to Shariah principles, a crucial question arises: Is crypto trading halal? This question requires a […]