| Islamic finance is a system of financial services that complies with the principles of Shari’a (Islamic law). Islamic finance is free from the elements of Riba (interest), Gharar (extreme uncertainty and lack of transparency), Qimar (gambling) and some other market malpractices which are prohibited by Shari’a.
Islamic finance transactions are typically asset backed as charging of returns on lending money is prohibited. Islamic finance is based on the principle of assuming risk / liability in order to obtain rewards..........................................Full Article: Source
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