Economic, Finance, Zakat & Awqaf
With the rapid growth of Islamic banking and finance, there is a need to understand precisely what is meant by these terms, as well as what Muslims and non-Muslims can reasonably expect from IBF. In what ways are IBF different from their conventional counterparts? What can they accomplish that conventional BF cannot? These are some of the themes explored in this new section. The articles are intended to be easy to read and thus easy to understand. Some have been take from the media, others contributed by in-house staff or external scholars.
The distinguishing features of IBF include the following: the absence of riba or interest from all banking and finance, the application of risk as well as profit and loss sharing in financing, the absence of gharar (excessive risk), and abstaining from trading in prohibited substances. It is important for IBF to maintain its unique identity and build on its strengths. Otherwise it will be difficult to capitalize on the benefits of IBF. Our readers are welcome to contribute and suggest themes we can add and disseminate. We will post new articles, links or any other themes of interest.