
Islamic Capital Markets
Islamic Capital Markets are financial systems that enable investment and funding while adhering to Islamic principles. They avoid charging or paying interest (riba), promote risk-sharing, and exclude investments in prohibited sectors like alcohol or gambling. Instead, they use profit-sharing and asset-backed securities to facilitate capital flow, ensuring transactions align with ethical and religious values. These markets help Muslims invest responsibly and support economic development within compliant frameworks, balancing financial growth with moral considerations.