Sharia-compliant banking

Sharia-compliant banking refers to financial practices that adhere to Islamic law (Sharia). This system prohibits interest (riba) and encourages profit-sharing and risk-sharing instead. Banks offering Sharia-compliant products focus on ethical investments and avoid businesses involved in alcohol, gambling, or pork. Financial transactions must be transparent, and both parties should benefit fairly. Common practices include profit-sharing agreements (Mudarabah) and joint ventures (Musharakah). By operating within these guidelines, Sharia-compliant banks aim to provide financial services that align with Islamic principles while promoting social justice and economic well-being.