Islam is a system of religious beliefs and a divine way leading man through all fields of life; it prescribes a manner to build the perfect human society according to holy injunctions.
The Islamic code of life proposes a set of values to conduct all worldly affairs and to provide a solution to every aspect of human life. It has different dimensions: spiritual, social, cultural, political and of course economic.
The application of Islamic law to economic activity seeks to follow the Shari’ah rules in regards to spending, saving, investing, giving, etc. It searches for a socio-economic justice and an equitable distribution of income and wealth
The basic tenet of the Islamic financial model is prohibition on the paying and receiving of all forms of interest (riba), making money from money is usury and therefore not permitted.
The other principle is a fundamental belief in the sharing of profit and risk in the conduct of business. The customer and the bank share the risk of any investment on agreed terms, and divide any profits between them with Fairness and reciprocity
Islam also aims to eliminate exploitation and to establish a just society, where wealth should be generated only through legitimate trade and investment in assets. Investment in companies involved with alcohol, gambling, tobacco and pornography is strictly off limits.
Upcoming Islamic Finance Event
Hedge Funds World Middle East 2011
7th – 10th March 2011
Jumeirah Beach Hotel, Dubai, UAE
Terrapinn Middle East