Sharia-compliant
"Sharia-compliant" refers to actions, products, or services that adhere to the principles of Sharia, which is Islamic law derived from the Quran and the teachings of the Prophet Muhammad. This compliance ensures that practices align with Islamic values, promoting ethical behavior and social justice.
In the context of finance, "Sharia-compliant" often describes banking and investment practices that avoid activities considered haram, or forbidden, such as usury (charging interest) and investing in businesses related to alcohol or gambling. Instead, these practices focus on profit-sharing and risk-sharing arrangements that are permissible under Islamic law.