Is Islamic Finance Serving Humanity?

Islamic finance is more than a faith based alternative. It is a system built on transparency, fairness and accountability. At its heart is the simple principle that money should not be made from money without value being created. This is why interest is prohibited and why risk and reward must be shared. In practice this means that every transaction is clear, assets are real and contracts are honest. There is no hidden exploitation and no benefit for one party at the expense of another. This level of openness creates trust and builds long term stability. We often hear about the importance of ethical business, responsible investment and sustainable growth. Islamic finance already offers this framework. It insists that wealth is not hoarded but circulated, that people are not trapped in unfair debt and that prosperity is tied to justice. The strength of Islamic finance lies in its ability to combine faith with function. It works because it aligns with both human values and economic reality. Transparency is not an option in this system, it is the foundation. #IslamicFinance #EthicalLeadership #Transparency #FaithAndWork #Integrity #SustainableGrowth

🌍 Islamic Finance in the Caribbean – Post 2 Following last week’s discussion on the objectives of Shariah in financial transactions, let’s explore the key characteristics of transactions that support these objectives. Transacting parties are free to design, negotiate, and agree on contracts based on their needs. However, these transactions must adhere to the following principles: 1️⃣ Avoidance of Riba – No interest on deferred payments or unequal exchanges that create unfair transactions. 2️⃣ Avoidance of uncertainty (Gharar) – Parties must have equal, adequate, and accurate information. 3️⃣ Promotion of public interest – Transactions should benefit both the parties involved and society. 4️⃣ Encouragement of cooperation and fairness – Avoid greed, manipulation, and exploitation. 5️⃣ Avoidance of gambling (Maysir) – Transactions should not be based on uncertain future events that result in unfair loss or gain. 6️⃣ Avoidance of harm – Financial dealings should not harm the contracting parties nor society as a whole. 🔑 Takeaway: These characteristics are the reason Islamic finance is often described as “ethical finance”. It encourages individuals and organizations to operate in a manner that promotes fairness, justice, and social responsibility in all transactions. 👉 I’d love to hear from you—what insights or lessons do you think are most important as we build the Islamic finance industry in the Caribbean? 📌 Part of a weekly series on Islamic Finance in the Caribbean. Stay tuned for Post 3 next week ان شاء الله ! #IslamicFinanceInTheCaribbean #IslamicFinance #IslamicEconomics #Finance #Caribbean #ethicalfinance

Islamic Finance Insights - 274 Beyond Conventional Labels Funds come in many shapes. Be it equity, fixed income, money market; each tailored to investor needs. Islamic fund structures replicate this diversity but under Shariah guidance, ensuring no exposure to riba, gharar, or haram industries. This means investors don’t compromise choice; they simply elevate it with ethics. A portfolio is only as clean as the values it carries.

Sharia-Based vs. Sharia-Compliant Finance – What’s the Difference? In Islamic finance, these two terms are often used interchangeably — but they are not the same. 🔹 Sharia-Based Finance Built directly on Islamic principles (Maqasid al-Shariah). Uses original contracts like mudarabah, musharakah, salam, ijara. Focus: Substance over form → fairness, risk-sharing, justice. 🔹 Sharia-Compliant Finance Conventional structures re-engineered to “fit” Sharia. Prioritizes technical compliance (no riba, no haram industries). Focus: Form over substance → looks Islamic but often mirrors conventional banking. ⚖️ Key Insight: Sharia-based = builds finance from Islamic principles. Sharia-compliant = adapts conventional models to meet Sharia rules. 👉 The future of Islamic finance lies not just in compliance, but in building truly Sharia-based models that reflect justice, transparency, and real economic value. #IslamicFinance #ShariaCompliance #EthicalFinance #IslamicBanking #FinanceForGood

Australia’s Islamic Finance: Potential Meets Persistent Challenges: Just read an insightful piece on Salaam Gateway about the state of Islamic finance in Australia – and it’s clear the sector sits at an interesting crossroads. Despite being valued at only around AUD 2 billion (as of 2024), demand is undeniable: a survey showed 96% of Muslim consumers want Shariah-compliant home finance, with 91% ranking Shariah compliance as their top priority. The article highlights big opportunities in expanding Islamic banking products, investment vehicles, takaful, sukuk, and attracting foreign direct investment from Muslim-majority countries. But, as the article points out, growth is slowed by a few issues, i.e, Regulatory and tax hurdles, Funding shortages, Consumer trust challenges due to underperformance and high fees, and Limited awareness beyond the community With Australia’s young Muslim population and growing trade ties with GCC & Southeast Asia, the sector has immense potential. The key? Stronger regulation, better awareness, and rebuilding trust. Worth a read for anyone tracking ethical finance, investment flows, or emerging markets: Salaam Gateway Article #IslamicFinance #ShariahCompliant #EthicalBanking #Leasing #IslamicInvestments #IslamicFinanceInAustralia

🌍 Islamic Finance in the Caribbean – Post 1 What makes Islamic finance “Islamic”? The answer is Shariah compliance. What is Shariah? 📖 Shariah refers to commands, prohibitions, guidance, and principles that God has addressed to mankind pertaining to their conduct in this world and salvation in the Next (INCEIF 2019). In simpler terms, it’s the code by which Muslims live. Applied to financial activities, Shariah provides a framework with clear objectives: 1️⃣ Ensuring wealth circulates fairly – avoiding concentration among a few 2️⃣ Promoting continuous investment – wealth should grow, not be hoarded 3️⃣ Supporting communal prosperity – meeting the basic needs of society 4️⃣ Validating lawful financial ownership – the right of lawful financial ownership enables financial transactions 5️⃣ Preserving wealth – avoiding unjust or destructive transfers of wealth 🔑 The takeaway? Shariah-based financing is not just about serving the financial needs of individuals, businesses, and governments. It is tied to broader societal goals to ensure wealth flows. It includes charities and endowments, and enables prosperity across communities. 👉 I’d love to hear from you — what lessons or insights do you think are most relevant as we build this industry in our region? 📌 This post is part of a weekly series on Islamic Finance in the Caribbean. Stay tuned for Post 2 next week ان شاء الله ! #IslamicFinanceInTheCaribbean #IslamicFinance #IslamicEconomics #Finance #Economics #Caribbean

Islamic finance refers to conducting financial and banking transactions in accordance with Islamic, or Sharia, law. This is derived from both the Qur’an and the rulings of Islamic scholars. In recent years, global interest in Sharia-compliant investment structures has grown, leading to increasingly sophisticated financial products. Our latest factsheet includes: 🔹 A practical case study of a Sharia-compliant structure 🔹 An explanation of how a commodity Murabaha agreement works 🔹 Key considerations for structuring Islamic investments Read more and view our factsheet here: https://lnkd.in/eGQuhbXP #oneiqeq #islamicfinance #shariacompliant #murabaha #wealthmanagement Mirek Gruna | Simon Vautier Morris | Matthew Brehaut | Mark Lewin

💼 𝑰𝒔𝒍𝒂𝒎𝒊𝒄 𝑭𝒊𝒏𝒂𝒏𝒄𝒆 𝒗𝒔 𝑪𝒐𝒏𝒗𝒆𝒏𝒕𝒊𝒐𝒏𝒂𝒍 𝑭𝒊𝒏𝒂𝒏𝒄𝒆 𝐻𝑎𝑣𝑒 𝑦𝑜𝑢 𝑒𝑣𝑒𝑟 𝑤𝑜𝑛𝑑𝑒𝑟𝑒𝑑 𝑤ℎ𝑎𝑡 𝑡𝑟𝑢𝑙𝑦 𝑚𝑎𝑘𝑒𝑠 𝐼𝑠𝑙𝑎𝑚𝑖𝑐 𝐹𝑖𝑛𝑎𝑛𝑐𝑒 𝑑𝑖𝑓𝑓𝑒𝑟𝑒𝑛𝑡 𝑓𝑟𝑜𝑚 𝑡ℎ𝑒 𝐶𝑜𝑛𝑣𝑒𝑛𝑡𝑖𝑜𝑛𝑎𝑙 𝑠𝑦𝑠𝑡𝑒𝑚? This post breaks it down in simple, practical terms, from Shariah-based principles and risk-sharing concepts to ethical investment rules and real-world growth. 🌍 With Islamic finance assets now exceeding $4 trillion globally and expected to hit $7.5 trillion by 2028, this system is becoming a powerful global alternative rooted in fairness and transparency. 𝑺𝒘𝒊𝒑𝒆 𝒕𝒉𝒓𝒐𝒖𝒈𝒉 𝒕𝒉𝒆 𝒔𝒍𝒊𝒅𝒆𝒔 𝒕𝒐 𝒆𝒙𝒑𝒍𝒐𝒓𝒆: 📖 Key differences between both systems ⚖️ Benefits of Islamic finance 💡 Its growing impact worldwide 👇 What’s your take - Can Islamic Finance become a mainstream global system in the future? Share your thoughts in the comments! #ACCA #Finance #IslamicFinance #Interest #FM #Students

Islamic Finance Insights - 292 Profits with Purpose Leading Islamic financial institutions posted a 1.9% return on assets in 2025, outperforming sector averages (Global Finance Magazine's Best Islamic Financial Institutions). In Islam, profitability measures falah (success) through zakat-eligible growth, not unchecked accumulation, or transforming ROA into a reflection of rizq (provision) shared justly. This faith-driven efficiency sustains communities, not just coffers. Forward gaze: Will purpose-led ROA inspire a renaissance in responsible returns?

DON’T BE NATO — “No Action, Talk Only” =========================== In this blessed land of Malaysia, the Islamic financial system has been implemented alongside the conventional financial system. While the conventional system has existed for more than 700 years, Islamic finance is relatively young — approximately 40 years old. Inevitably, both systems are often compared. Those with the eyes of a bee will seek the goodness and value of Islamic finance, choosing what benefits them both in this world and the Hereafter. Those with the eyes of a fly, however, are quick to search for weaknesses and shortcomings, doing nothing but complain. What many may not realise is that financial institutions and business entities across the world are closely observing the rapid development of Islamic finance. They understand that the growth of Islamic finance is positively correlated with the increasing awareness among Muslims of the importance of consuming halal products. When a product is halal, only then will Muslims be confident to consume or invest in it. This statement is both strong and significant: to capture all market segments, the global industry must ensure that halal products — including Shariah-compliant financial products — are made available. Although Islamic financial assets represent only about 2% of total global financial assets, studies consistently show that the growth rate of Islamic finance far outpaces that of conventional finance. This growth trajectory indicates that Islamic finance will continue to expand and, in due time, play a dominant role in global financial transactions. The entire world is now studying, aligning, and adapting its strategies to be compatible with Islamic financial principles. We too must act strategically. Let us not remain complacent. My dear colleagues and friends, let us not become “NATO” — No Action, Talk Only. Allah knows best.