What is Shariah?

Shariah, or Islamic law, is based on the teachings of the Quran, Islam's Holy Book, and the life of the Prophet Muhammad (peace be upon him). It sets out the framework for what is permissible and impermissible in various aspects of life, including finance and investments. Islamic finance, derived from the rich heritage of scholarly research in Islamic law of transactions, has been adapted to comply with modern economic and financial systems. According to Shariah, money must be used productively, generating returns through legitimate trade, services, or joint ventures. Generating interest on money is prohibited as it is seen as income through exploitation. Additionally, Shariah forbids trade or investment in unethical industries or commodities, such as arms, gambling, alcohol, interest-based finance, non-halal food or beverages, and non-halal entertainment.

Last Update: 22 July 2024