Islamic Finance Tips

Islamic finance is based on a belief that money shouldn’t have any value in itself. It’s just a way to exchange products and services that do have a value. Linked to this way of thinking about money, is the idea that you shouldn’t make money from money.

How is Islamic finance different to other types of finance?

Islamic finance is based on a belief that money shouldn’t have any value in itself. It’s just a way to exchange products and services that do have a value.

Linked to this way of thinking about money, is the idea that you shouldn’t make money from money. This means that wherever possible, getting involved in interest by either paying or receiving it should be avoided.

Another important idea that underpins Islamic finance is that it shouldn’t cause harm. For that reason, Islamic financial services should not invest in things like alcohol, tobacco, and gambling.

Islamic finance also encourages partnership. This means that, where possible, both profit and risks should be shared. This can be between two individuals, an individual and a business, or a business and a business.

Anyone can use Islamic finance products and services – you don’t have to be Muslim.