Concepts of Islamic Finance

The principles of Islamic finance include prohibiting scheduled payment for principal amount (riba), prohibiting terminology related terms and term uncertainty (gharar), that is, sales does not exist or does not exist included. Or gambling transactions are prohibited by investing in illegal or Hallam business such as drugs, alcohol, gambling etc.

Economics may also be influenced by culture. It is the intersection of the recent articles of the Brookings Institute on the concept of Islamic finance and financial subsumption. Historically, restrictions on Islamic law over finance have led some people in the Islamic world to detain their money from financial institutions. While this is not the only reason people maintain bank accounts, some Muslims - a majority of countries offer Western financial models to replace religious beliefs to include more citizens in the formal financial system .

There is no doubt that Islamic finance and banking has evolved into an important market that will play an important role and focus in the global financial industry. Indeed, the Islamic finance industry is growing at an annual rate of 10% to 15% maturity, so the Islamic finance industry shows leading growth and growth (Hancock, 2013). There is no indication that this trend will slow in the future (2013)

Along with the continued development of the Islamic finance industry, Muslims are concerned about starting to integrate with modern Western financial in an unexpected way. In an article entitled "Islamic Banking and Financial Issues: Islamic Banks, Shallia-Based Investment, and Squawk", the author says, "Because the squaw is usually built according to the Western securitization regulation, it does not represent financial innovation I assert. "The reason for the existence of the Islamic financial system is not clear when contracts such as (Ibrahim) Islamic states are recognized by Islamic law scholars, many people claim that sukuk is a link to just another name Islamic bonds sold in Islamic bonds are the same as Western bonds, so there are serious legal issues. They may use different terms, they may be slightly different, like paying rent instead of treasure interest, but the final result is the same