Page 292 - FM Integrated WorkBook STUDENT 2018-19

Chapter 15

Islamic finance

Islamic finance operates in accordance with the principles of Sharia law:

 Sharing of profits and losses

 no interest (riba) allowed

 Restricted to Islamically accepted transactions, i.e. no investment in alcohol,
gambling, etc.

Main sources of Islamic finance are:

 Murabaha (trade credit)

 Ijara (lease finance)

 Sukuk (debt finance)

 Mudaraba (equity finance)

 Musharaka (venture capital)

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