Islamic Finance
Discover how $3.5 trillion flows through Sharia-compliant banking without interest—using profit-sharing, ethical investing, and asset-backed financing
Your Progress
0 / 5 completedIntroduction to Islamic Finance
Islamic finance is a $3.5 trillion global industry serving 1.9 billion Muslims through banking systems that prohibit interest (riba), speculation (maysir), and excessive uncertainty (gharar). Instead of lending money at interest, Islamic banks partner with customers through profit-sharing, asset-backed financing, and equity participation.
The Core Question
How do banks make money without charging interest? Islamic finance replaces interest-based lending with trade, partnerships, and asset ownership. When you want a $200,000 house, the bank doesn't loan you money—it buys the house and sells it to you at $240,000 over 15 years. The bank's profit comes from trade markup, not interest.
Market Size & Growth
Top Islamic Finance Markets
Why It Matters
- →Ethical alternative: Banking aligned with religious values for 1.9B Muslims
- →Risk-sharing: Banks partner with customers, share losses (unlike conventional banks)
- →Asset-backed: Every transaction tied to real goods/services (prevents speculation bubbles)
- →Growing influence: Major institutions (HSBC, Citi, Deutsche Bank) offer Islamic products