الْمَالُ الْحَلَالُ
Islamic Finance
A comprehensive guide to Islamic banking, halal investing, Shariah-compliant products and financial principles.
Core Principles
No Riba (Interest)
Interest is strictly prohibited in Islam. All financial transactions must be free from riba.
No Gharar (Excessive Uncertainty)
Transactions must have clear terms. Speculative or ambiguous contracts are not allowed.
Profit & Loss Sharing
Islamic finance emphasizes partnership. Both parties share profits and losses.
Asset-Backed
All financial transactions must be tied to real economic activity and tangible assets.
Ethical Investing
Halal investments avoid businesses involved in alcohol, gambling, pork, or other haram activities.
Zakat on Wealth
Muslims must pay 2.5% Zakat annually on qualifying wealth above the Nisab threshold.
Islamic Financial Products
| Product | Description |
|---|---|
| Murabaha | Cost-plus financing — the bank purchases an item and sells it to the customer at a markup. |
| Mudarabah | Profit-sharing partnership — one party provides capital, the other provides expertise. |
| Musharakah | Joint venture — both parties contribute capital and share profits and losses. |
| Ijarah | Islamic leasing — the bank purchases an asset and leases it to the customer. |
| Sukuk | Islamic bonds — certificates representing ownership in an asset or investment. |
| Takaful | Islamic insurance — a cooperative system based on mutual help and shared responsibility. |