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Islamic finance simply put is a method of conducting financial transactions, banking, and managing money with moral principles that respect Islamic law or Sharia.
To comply with the Shari’ah, certain activities are prohibited in Islamic finance.
Islamic finance offers products and services that comply with Islamic law (Sharia) and often the question that comes up is who decides what is and is not sharia-compliant.
The concept of Islamic finance can be traced back to about 1,400 years ago when the concept came into existence along with the foundation of Islam.