Islamic finance principles

Islamic finance operates on principles rooted in Shariah law, emphasizing fairness and ethicality. It prohibits earning interest (riba), viewing money as a means to promote real economic activity. Instead, financial transactions are based on asset-backed deals, profit-sharing, and risk-sharing arrangements. For example, instead of lending money with interest, a bank might invest directly in a business or property, sharing in profits and losses. Transparency, justice, and social responsibility are core, aiming to foster equitable economic growth without exploiting or harming others.