Islamic Finance

Roll no: BBHM-F19-057

Section: 5-A

Submitted To: Ma’am Uzma

What is Islamic economic system?

Islamic finance is a monetary system that works under Islamic law (called sharia) and is therefore
consistent with sharia. Like most normal monetary systems, Islamic finance incorporates banks,
significant business sectors, monetary directors, trading companies, and insurance agencies. In any case,
these associations are represented by Islamic law and the standards and guidelines of the monetary
area apply to their normal partners.

The search for balance:

Islamic economics depends on key standards of value, which assists with guaranteeing that the
objectives and destinations that drive the Islamic monetary industry advantage society.

• Balance the quest for material things with otherworldly requirements

• Balancing individual and social requirements

The belief that Allah is the owner of all wealth

The essential idea of Islam is that Allah possesses all the wealth on the planet, and that individuals are
only his trustees. Therefore, individuals need to oversee wealth as per the orders of Allah, which
advances equity and forbids certain exercises.

Simultaneously, Muslims reserve the privilege to partake in any wealth they might gain and use in a
legitimate way; they don't have to feel embarrassed about being rich as long as their lead is in
accordance with Islam.

Islamic Economic benefits:

Economic value is kept up with. Islamic law unequivocally censures the expansion in lawful pay. The
standards of the Holy Quran likewise support attention to the economic and social issues they face with
individuals living in the public arena. Two significant instruments for estimating the economic existence
of customary individuals are Zakat and Sadqah. Zakat is utilized to a limited extent for specific individuals
who meet the conditions for giving zakat and the predefined system is additionally disclosed to the
people who take zakat. All destitute individuals ought not take the measure of Zakat. To the information
on Sadqah it is an award for poor people. Both of these variables, for example, Zakat and Sadqah
assume a significant part for instance; Zakat ought to be paid to the Shariah, which adds to aiding the
penniless. Likewise, Sadaqah (Charity) is additionally paid for poor people. This assumes a significant
part in decreasing imbalance in the public arena.