Sharia-compliant capital attraction methods are pivotal in driving Islamic banking growth, excluding riba (interest) and haram (prohibited industries). Mechanisms like mudarabah, musharakah, murabahah, ijarah, sukuk, and digital tools fuel the sector’s expansion, with assets reaching $4.5 trillion in 2022, per ICD-Refinitiv. Statista projects growth to $6.7 trillion by 2027, while Market Data Forecast estimates a […]
The Islamic banking sector is outpacing traditional finance with remarkable momentum. In 2022, global Islamic finance assets hit $4.5 trillion, per ICD-Refinitiv, with projections to reach $6.7 trillion by 2027, per Statista. Its compound annual growth rate (CAGR) of 10% for 2023–2030, per Market Data Forecast, surpasses traditional banking’s 6–7%, per World Bank. What drives […]
Islamic finance, grounded in Sharia principles, is reshaping global markets with its ethical and transparent approach. By banning riba (interest) and haram (forbidden) sectors, it ties investments to tangible assets and social good. In 2024, the market reached $4.9 trillion, with forecasts projecting $6.7 trillion by 2027, per LSEG. What numbers define this sector’s growth, […]
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 […]
What is Social Responsibility in Islamic Finance? Social responsibility is a core pillar of Islamic finance, rooted in Sharia’s ethical framework from the Quran and hadiths. Islamic finance demands fairness, transparency, and a ban on exploitation, inherently tied to societal welfare. Unlike conventional finance, where profit often reigns supreme, Islamic finance prioritizes community well-being alongside […]
What is Sharia in the Financial Context? Sharia is the Islamic legal framework, drawn from the Quran, the Prophet Muhammad’s hadiths, and scholarly interpretations, guiding all life aspects, including banking. In the Islamic banking sector, Sharia establishes ethical and religious standards, setting it apart from conventional systems. Its core aim is to promote fairness, transparency, […]
What Are Sukuk? Sukuk are Islamic financial instruments, a form of Sharia-compliant securities akin to bonds, rooted in the Quran and the Prophet Muhammad’s teachings. Unlike conventional debt tools, they grant ownership in tangible assets—real estate, infrastructure, or equipment—rather than promising interest-based returns. This structure avoids riba (interest), aligning with Islamic prohibitions, and ties income […]
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 […]
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 […]
In a world where financial opportunities abound, it is essential for Muslim investors to ensure that their investments align with Islamic principles. The concept of halal investments stems from the core tenets of Shariah, emphasizing fairness, ethical dealings, and a strict prohibition of haram (forbidden) activities such as riba (interest), maisir (gambling), and gharar (excessive […]