Muslim finance

Friday, 07 April 2006 12:00

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.

Comments Bubble Comments

blog comments powered by Disqus

Twitter: My Finances

Join the conversation at #news_myfinances

Newsletter sign up


In addition to the weekly newsletter, which areas of finance would you like to hear from us about:

Tick this box if you would like us to send you promotions from carefully selected third parties.

By signing-up you agree to the terms of use and privacy policy.

sign-up button

Get the latest information on: