Islamic Finance: One of the fastest-growing financial sectors in the world
Islamic finance is one of the fastest-growing financial sectors in the world. It includes an ethical approach towards banking and investment that aligns with Islamic principles such as bans on interest, gambling, and uncertainty.
The global market for Islamic finance is worth $2 trillion dollars in assets and has grown by 10% annually over the last decade.
Your money is your responsibility
What is Islamic Finance?
Islamic finance is a system of financial management that follows the laws of Islam which are known as Shariah. It follows the values of fairness, justice, and responsibility for the well-being of society. It has two core principles, one that prohibits the use of interest and the other that prohibits investing in businesses regarded as prohibited industries.
Islamic Finance - the fairest and just form of finance
Why interest or Riba is prohibited?
The prohibition on the use of interest or Riba is based on the belief that money should be seen as a medium for transactions and not an object of speculation. The Quran specifically prohibits Riba, which is typically translated as "interest" but has also been translated as "excess," "increase," or "addition."
The basic principles behind Islam’s prohibition against Riba (interest) are:
1) Riba deducts from what belongs to others; and
2) Riba causes injustice to others.
The prohibition against riba has been a central theme in Islamic finance. Riba is seen as an unjust form of wealth accumulation because it does not create new value.
Islamic finance is the future of finance
Moreover, Islamic law has a set of principles that are applied to financial transactions. The main principles include:
- Money should not be made from money, or more plainly put, interest on loans is not permitted.
- Economic activities should be based on honest and sincere means and not gambling or speculation with risk in mind.
- There should be no exploitation of fellow human beings through excessive charges or other unfair practices such as bribery and fraud.
- People should act in a way that does not cause harm to themselves or others.
Islamic finance is the future of finance. This is because people today want to be a part of the fairest form of finance. The Islamic finance industry is growing at a rapid rate because it is the fairest and the justest form of finance.
It's not just an economic system, it's also a way of life. It is based on the Islamic faith which teaches qualities like compassion, charity, and benevolence as well as how to make wise decisions with money. It doesn't accept interest or put people into debt traps.
We should not think that Islamic banking is just for Muslims because, in actuality, it’s for everyone. Islamic Finance strives to be a sustainable way of life through environmental responsibility, economic justice, and charitable giving.
For this reason, we believe that Islamic finance will become more popular with time.
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