Islamic Banking and Finance

Islamic principles form the foundation of Sharia-compliant finance. This financial system, guided by the principles of Islam, offers a unique approach to managing money that aligns with spiritual beliefs and ethical standards. Today, I will look into the numerous advantages this system brings to the Muslim community and the broader global financial landscape. It presents …

Key Benefits of Choosing Finance Governed by Islamic Principles Read More »

Islamic finance is rooted in the principles of Sharia, the Islamic legal system derived from the Quran and the Hadith (sayings of the Prophet Muhammad (saw)). In this article, we will look into the core principles and components of the Islamic finance system, distinguishing it from conventional finance. It explores the prohibition of interest (Riba), …

Important Principles & Components of Islamic Finance System Read More »

While analyzing financial statements, it is crucial to know the types of those financial statements. This is to obtain comprehensive insight into the company’s financial performance’s healthiness. By understanding the types of financial statements, investors are able to indicate which strategy the reporting company is pursuing. Some company focuses on revenues generation, i.e., transaction volume …

5 Types of Financial Statements You Should Know Read More »

One of the main components of effective financial planning is to cover yourself with insurance. Takaful vs conventional insurance has been one of the main dilemmas for Muslims. We will discuss the critical differences between takaful and traditional insurance in the following. But let’s have a glance at the definition of takaful first. What is …

Takaful vs Conventional Insurance: A Complete Guide Read More »

Islamic banking is the new phenomenon in modern economics, it presents as an effort and the belief of ‘Ulama and Islamic economist as a solution towards interest-based conventional economic. Islamic banking is defined as non-interest banking. To answer the question on How Shariah-compliant is Islamic banking, we will observe the three areas; Philosophical fundamentals, Product …

A Critical Review: How Shariah-Compliant is Islamic Banking? Read More »

Did you know what is usul al-fiqh and its role in Islamic finance? If you did not, we will briefly explain it to you. Islamic law comes up with five legal matrixes: obligation, favorable, permissible, detestable, and prohibition. Muslims are subject to accord their conscious activities, including financial transactions, to these matrixes. With the rapid …

How Jurisprudence (Usul al-Fiqh) Plays Important Role in Islamic Finance Read More »

It is essential for Muslim investors to know how AAOIFI plays a significant role in correlating sharia principles and investment activities. AAOIFI stands for Accounting and Auditing Organization for Islamic Financial Institutions. One of AAOIFI’s goals is to set financial reporting that complies and does not contradict Islamic law (fiqh). This article outlines a brief …

What Muslim Investors Should Know About AAOIFI Read More »