A MINI GUIDE TO ISLAMIC BANKING AND FINANCE

The primary objective of this mini guide is to explain to interested individuals especially the Muslims the differences between forbidden financial transactions commonly used in conventional finance and their corresponding Islamic transactions which are allowed by Shari ‘ah. It also endeavors to provide clearly the basic understanding on various contracts coupled with the full information about “state of the art” Islamic financial instruments as well as discussion of recent fatwas and decision of jurists. The earlier four chapters of this guide review the prohibitions of riba and gharar, the permissible financial methods, the permissible investment vehicles and the permissible insurance alternatives. The last chapter gives some answers to commonly asked questions or issues which are practically useful in the area of Islamic banking and finance to face the challenges of a modern era. It is hoped that this mini guide will assist the readers to attain a better understanding on financial transactions according to the Shari ‘ah in order to conduct such dealings within its parameters.

• Published by CERT PUBLICATIONS
• ISBN 983-42785-4-