𝗪𝗲𝗹𝗰𝗼𝗺𝗲 𝘁𝗼 𝗼𝘂𝗿 𝗲𝘅𝗽𝗹𝗼𝗿𝗮𝘁𝗶𝗼𝗻 𝗼𝗳 𝗜𝘀𝗹𝗮𝗺𝗶𝗰 𝗙𝗶𝗻𝗮𝗻𝗰𝗲!
🌟 Islamic Finance is a distinctive financial system based on Shari’ah (Islamic law), designed to align financial activities with ethical, moral and religious values. Here’s a brief overview:
𝟭- 𝙋𝙧𝙤𝙝𝙞𝙗𝙞𝙩𝙞𝙤𝙣 𝙤𝙛 𝙍𝙞𝙗𝙖 (𝙐𝙨𝙪𝙧𝙮/𝙄𝙣𝙩𝙚𝙧𝙚𝙨𝙩): 🚫 One of the fundamental principles of Islamic Finance is the prohibition of Riba (usury or interest), which is considered exploitative. Instead, Islamic Finance promotes sale-based, profit-sharing and risk-sharing arrangements directly dealing with economic activities, such as Murabaha (cost-plus financing) and Mudarabah (profit-sharing).
𝟮- 𝙍𝙞𝙨𝙠 𝙎𝙝𝙖𝙧𝙞𝙣𝙜: 🤝 Unlike conventional finance, which often places the burden of risk on the borrower, Islamic Finance encourages shared risk between transacting parties. This ensures fairness and a balanced approach to financial transactions.
𝟯- 𝙀𝙩𝙝𝙞𝙘𝙖𝙡 𝙄𝙣𝙫𝙚𝙨𝙩𝙢𝙚𝙣𝙩𝙨:📈 Investments must be Halal (permissible) and avoid Haram (forbidden) activities like alcohol, gambling, and unethical practices. The goal is to ensure that investments contribute positively to society.
𝟰- 𝙏𝙧𝙖𝙣𝙨𝙥𝙖𝙧𝙚𝙣𝙘𝙮 𝙖𝙣𝙙 𝙅𝙪𝙨𝙩𝙞𝙘𝙚: 🌐 Transactions must be transparent and clearly defined to prevent disputes and ensure fairness. This transparency helps foster a financial system based on justice and ethical principles.
Stay tuned as we dive deeper into these principles and explore how they shape the practices and products in Islamic Finance. Join us on this journey to understand how this unique approach to finance integrates ethics, faith and fairness. #IslamicFinance #FinanceEducation #EthicalFinance #FinancialLiteracy
