Skip to main content

Posts

Showing posts from March 21, 2013

How Is Islamic Finance Different from Conventional Finance? #islamicfinance #conventionalfinance

http://m.dummies.com/how-to/content/how-is-islamic-finance-different-from-conventional.html

How Is Islamic Finance Different from Conventional Finance?By Dr. Faleel JamaldeenIslam is more than a religion; it's also a code of life that deals with social, economic, and political matters. Every Muslim is expected to live according to the Islamic code, or sharia. Each issue addressed by sharia is entwined with all other issues; therefore, economic matters are related to religion, culture, ethics, and politics.Islamic finance, then, is a financial system that operates according to sharia. Just like conventional financial systems, Islamic finance features banks, capital markets, fund managers, investment firms, and insurance companies. However, these entities are governed both by Islamic laws and by the finance industry rules and regulations that apply to their conventional counterparts.A core concept of Islam is that Allah is the owner of all wealth in the world, and humans are merely i…