Islamic Finance refers to financial activities that comply with the principles of Sharia, or Islamic law. It prohibits practices such as charging interest, known as Riba, and encourages risk-sharing and ethical investments. Instead of earning interest, financial institutions earn profit through equity participation, leasing, or profit-sharing arrangements. In Islamic Finance, transactions must be backed by tangible assets or services, ensuring that investments are ethical and socially responsible. Common financial products include Murabaha (cost-plus financing), Mudarabah (profit-sharing), and Ijara (leasing). This system aims to promote fairness, transparency, and economic stability within the community.