ISLAMIC FINANCIAL
MARKET
(ISLAMIC
PRINCIPLES)
Principles
Introduction
Mainpoints
Comparison:
(Islamic Financial
System & Conventional
Financial System)
Core Ideas
promoted
by Sharia
Introduction
Operates
according to
islamic law
(Sharia)
Governed both by
Islamic law &
finance industry
rules &
regulations
Quite different
with conventional
finance
Gharar (deception)
Maysir/Qimar
(gambling)
Principle
of Islamic
Finance
Riba (extra
interest)
Investment
in prohibited
industries
Islamic finance is based on two other
crucial principles:
■ Material finality of the transaction
■ Each transaction must be related to a real underlying
economic transaction.
■ Profit/loss sharing
■ Parties entering into the contracts in Islamic finance share
profit/loss and risks associated with the transaction.
Core ideas promoted by sharia
THE owner of all
wealth
Individual’s
needs =
Society’s needs
Balancing a’mal
and imaan
Just,
responsible,
free-market
economy
Comparison Between Islamic Financial System And
Conventional Financial System