Muslim finance products allow the UK’s two million Muslims to benefit from mortgages, bank accounts and child trust funds, which would normally go against their faith.
Islamic, or Shariah, law forbids the charging or receiving of interest (riba in Arabic), making conventional mortgages, overdrafts, and many investment funds off limits. While shares and dividends are acceptable, speculation is forbidden.
Additionally the only companies that are Halal (permissible) to own shares in cannot have income from alcohol, pork-related products, pornography and nudity, conventional financial services, gambling, tobacco, armaments and human or animal genetic experimentation.
The creation of Muslim financial products typically involves employing a team of scholars to seek ways that will allow Muslims to receive services without breaking the rules of their faith.
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