Sharia-compliant banking refers to financial practices that adhere to Islamic law, or Sharia. This type of banking prohibits activities involving interest (riba), excessive uncertainty (gharar), and investments in businesses considered haram, such as alcohol or gambling. Instead, it focuses on profit-sharing, asset-backed financing, and ethical investments. In Sharia-compliant banking, financial products are structured to ensure compliance with Islamic principles. Common practices include Murabaha, where banks buy goods and sell them at a profit, and Mudarabah, a partnership where one party provides capital while the other manages the investment. This approach aims to promote fairness and social responsibility in financial transactions.