A comparative fiqh in Islamic finance: Islamic organization and the perception of riba (usury) and conventional banks among Muslims / Mohammed Haikal Hanan ... [et al.]

Islamic finance refers to a financial system that operates according to the principles of Islamic law, known as Shariah. It is a rapidly growing sector of the global financial industry that offers an alternative approach to conventional finance. Islamic finance is based on ethical principles and promotes fairness, justice and social responsibility.

One of the fundamental principles of Islamic finance is the prohibition of interest, or riba, which is seen as exploitative and unfair. On the other hand, Islamic finance encourages risk­sharing and profit-sharing arrangements. It emphasizes the concept of equity and encourages ethical investment in real assets, businesses and projects that contribute positively to society.

Islamic finance also prohibits investment in activities that are considered haram (forbidden) according to Sharia, such as alcohol, gambling, pigs, and certain forms of entertainment and speculation. This encourages investment in sectors that are socially responsible and beneficial to society, such as healthcare, education, renewable energy and infrastructure development.