Islamic banking
Interest-free lending system
Islamic banking is a financial system operating according to Islamic law (sharia), which prohibits charging or paying interest (riba).
Instead of interest-bearing loans, Islamic banks use profit-sharing arrangements, leasing, and cost-plus financing structures.
The couple chose Islamic banking for their mortgage to comply with their religious beliefs.
Islamic banking has grown substantially worldwide, serving both Muslim and non-Muslim customers attracted to its ethical investment principles.
- profit sharingDistributing earnings to workers
- economic justiceFair allocation of resources
- risk-sharingDistributing potential losses collectively
- interest-free loanBorrowing without added charges
- wealth redistributionShifting assets across society
maqasid al-shariah · transaction · salam · social equity · regulatory authorities · Gulf states · central banks · poverty alleviation · Dubai · Malaysia · halal · contract · fatwa · Sharia · investment · prohibition · scholar · ethical
- Islamic Lawsharia, Sharia, Shariah, fatwa, fatwas
- bankingbank, banks, ATM, ATMs, account
- Asian Financeyen, yuan, renminbi, Bank of Japan, Hang Seng
- Maghreb economyphosphates, argan oil, citrus, dates, olives
- Middle East economiesoil exports, oil revenues, oil wealth, oil reserves, oil industry
- Gulf Financepetrodollars, dirham, riyal, dinar, Dubai
Islamic bankingusury
Extortionate money lending
predatory lending · speculative trading · payday lending · commercial banking · gambling
Islamic bankingdebt financing
Raising capital through borrowing
compound interest · credit card interest · payday lending · subprime lending · predatory lending