A synopsis: Islamic Finance refers to a system of financial activity that is consistent with Islamic law “Sharia” principles and guided by Islamic economics. In particular, Islamic law prohibits “usury”, the collection and payment of interest, also commonly called “riba” in Islamic discourse. In addition, Islamic law prohibits investing in businesses that are considered unlawful, or “haraam” (such as businesses that sell alcohol or pork, or businesses that produce media such as gossip columns or pornography, which are contrary to Islamic values)
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