Category Islamic Finance

What Makes a Financial Product Shariah-Compliant?

A Shariah-compliant product avoids riba (interest), gharar (excessive uncertainty), and investment in prohibited activities. Instead it relies on real assets, risk-sharing, and ethical trade. Common structures include murabaha (cost-plus sale), ijarah (leasing), mudarabah and musharakah (partnership), and sukuk (asset-backed certificates).…