Islamic banking refers to a financial system that operates in accordance with the principles of Islam. It prohibits the payment or receipt of interest, known as riba, and promotes risk-sharing and ethical investments. Instead of earning interest, banks earn profit through investments in assets or businesses that comply with Sharia law. In Islamic banking, financial products are structured to avoid activities considered haram, or forbidden, such as gambling and alcohol. Common products include Murabaha (cost-plus financing) and Mudarabah (profit-sharing). This system aims to promote social justice and economic development while adhering to religious guidelines.