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Tag: Shari
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What is Shari?
Shari is a term used in Islamic finance to refer to the Islamic law that guides financial transactions.
How does Shari differ from conventional finance?
Shari prohibits interest (riba) and investments in businesses that are considered haram (forbidden) such as alcohol or gambling.
Is Shari only applicable to Muslims?
While Shari is based on Islamic principles, its ethical guidelines can be adopted by anyone seeking socially responsible investing.
What are some key principles of Shari finance?
Key principles include the prohibition of interest, uncertainty (gharar), and gambling (maisir), as well as promoting social justice and ethical investing.
How can one invest in line with Shari principles?
Investors can opt for Shari-compliant funds, sukuk (Islamic bonds), or engage in ethical trading that aligns with Islamic values.