ISLAMIC FINANCE
ISLAM means the active submission to the one God. It is strictly a monotheistic religion since it restricts worship to the one supreme Lord who is the Originator and Creator of the universe. Peace (the root from which the word Islam is derived) is attained through complete obedience to the commandments of God, for God is the source of all peace. Muslims are those who believe in one God and in Muhammad as the final Prophet of God. Islam is the final religion revealed to human beings through the last Prophet who was called Muhammad.
FINANCE is a field within economics that deals with the allocation of assets and liabilities over time under conditions of certainty and uncertainty. Finance can also be defined as the science of money management. A key point in finance is the time value of money, which states that one unit of currency today, is worth more than one unit of currency tomorrow. Finance aims to price assets based on their risk level and their expected rate of return. Finance can be broken into three different sub-categories: public finance, corporate finance and personal finance.
ISLAMIC FINANCE signifies financial services, mechanisms, practices, transactions, and instruments that comply with provisions given in these fundamental Islamic texts principally implemented to comply with the main tenets of Shariah (or Islamic law). Thus, Islamic finance not only includes banking, but also capital formation, capital markets and all types of financial intermediation. Islamic financial products now cover a broad range of financial services, including funds management, asset allocation, payment and exchange settlement services, insurance and reinsurance, and risk management. For almost all conventional financial products there is nearly always an analogous Islamic finance product.
Shariah is Islamic law. The main sources of Shariah are the Holy Quran, Hadith, Sunna, Ijma, Qiyas and Ijtihad.
The Holy Quran...