Category: Shariah Compliance

Shariah Compliance refers to the adherence to principles and guidelines laid down by Islamic law, also known as Shariah, in the development and operation of financial products and services. This includes the prohibition of interest-based transactions and a focus on risk-sharing and ethical investing. Islamic financial institutions and products must be vetted and approved by a Shariah supervisory board to ensure compliance with these principles. In addition to being compliant with religious beliefs, Shariah-compliant financial products are also seen as more socially responsible and ethical, as they promote financial inclusion and economic development.