Sharia finance (Halal, which means permitted) consists of the banking activity in which the financial institution participates in the profits and losses of the company it subscribes to. Halal finance, therefore, is seen as a 𝗳𝗼𝗿𝗺 𝗼𝗳 𝘀𝗼𝗰𝗶𝗮𝗹𝗹𝘆 𝗿𝗲𝘀𝗽𝗼𝗻𝘀𝗶𝗯𝗹𝗲 𝗶𝗻𝘃𝗲𝘀𝘁𝗺𝗲𝗻𝘁.
The 𝗰𝗼𝗻𝗰𝗲𝗽𝘁 𝗼𝗳 𝗿𝗶𝘀𝗸-𝘀𝗵𝗮𝗿𝗶𝗻𝗴, therefore, is central to Islamic banks and finances, so it is essential to understand the role of the latter in raising capital. At the same time, Islamic finance requires the circumvention of Riba (usury) and Gharar (ambiguity or deception). 𝗧𝗵𝗲 𝗲𝗻𝗱 𝗿𝗲𝘀𝘂𝗹𝘁? The ethical and economic principles of Islamic finance are also arousing interest outside the Muslim community.
There are many banks now fully Sharia-compliant and licensed in the UK. These include 𝗔𝗹 𝗥𝗮𝘆𝗮𝗻 𝗕𝗮𝗻𝗸 which has five branches and offers a wide range of Sharia-compliant financial products in the UK. Or 𝗕𝗮𝗻𝗸 𝗼𝗳 𝗟𝗼𝗻𝗱𝗼𝗻 𝗮𝗻𝗱 𝗧𝗵𝗲 𝗠𝗶𝗱𝗱𝗹𝗲 𝗘𝗮𝘀𝘁, an independent Sharia-compliant British bank based in London. 𝗤𝗜𝗕 (𝗨𝗞) is a subsidiary of the Qatar Islamic Bank and offers a range of Sharia-compliant banking services.