Islamic banking principles

Islamic banking operates according to Shariah principles, primarily avoiding interest (riba) and excessive uncertainty (gharar). Instead, it relies on profit-sharing, joint ventures, and asset-backed financing. Banks facilitate transactions such as profit-and-loss sharing (mudarabah), leasing (ijarah), and trade-based financing (murabaha). The goal is to promote ethical investing, social justice, and real economic activity, ensuring that money is used to support productive ventures. By adhering to these principles, Islamic banking seeks to foster financial fairness and social responsibility while complying with Islamic law.