Topic
Banking and investment that avoid interest (ribā) and speculation, using profit-sharing, sale and leasing instead.
What it means
Islamic finance uses contracts such as muḍāraba (profit-sharing), murābaḥa (sale at an agreed mark-up), ijāra (leasing) and ṣukūk (asset-backed certificates). It has grown since the 1970s, and Islamic banks now operate in many countries, with Muslim and non-Muslim customers.
What the sources say
Critics say that some products only imitate conventional loans, and Muslim economists have said the same. The aim in the law is to tie profit to risk and to real assets.