Islamic Markets
Islamic markets refer to economic systems and trading practices that comply with the principles of Islamic law, or Sharia. These markets emphasize ethical investing, prohibiting activities such as usury (charging interest) and investing in businesses involved in alcohol, gambling, or pork. Instead, they promote profit-sharing and risk-sharing arrangements, fostering a sense of community and social responsibility.
In Islamic finance, products like Sukuk (Islamic bonds) and Murabaha (cost-plus financing) are commonly used. These instruments are designed to ensure that investments are made in a manner consistent with Islamic values, promoting fairness and transparency in financial transactions.