Islamic Finance: An Introduction

Fayaz Ahmad Lone
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Fayaz Ahmad Lone: Prince Sattam Bin Abdulaziz University

Chapter 1 in Islamic Banks and Financial Institutions, 2016, pp 1-14 from Palgrave Macmillan

Abstract: Abstract Islamic Finance is the subject of growing interest as it provides an alternative banking system to the world economy. Islam considers trade a very important component of economic development and, therefore, the notion of investing finance in an ethical way is essential. On the one hand, interest is forbidden in Islam; on the other hand, the management of investment is a must, so Islam has developed an alternative financial system which encourages the promotion of trade without interest. In this system, therefore, risk is shared rather than being transferred while taking the business transactions into consideration.

Keywords: Financial Institution; Investment Institute; Equity Market; Financial Intermediary; Islamic Bank (search for similar items in EconPapers)
Date: 2016
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Persistent link: https://EconPapers.repec.org/RePEc:pal:pmschp:978-1-137-51566-7_1

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DOI: 10.1057/9781137515667_1

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