Mu' meneen Brothers and Sisters,

As Salaam Aleikum wa Rahmatullahi wa Barakatuh.  (May Allah's Peace, Mercy and Blessings be upon all of you)

One of our brothers/sisters has asked this question:

what is islamic financing?

(There may be some grammatical and spelling errors in the above statement. The forum does not change anything from questions, comments and statements received from our readers for circulation in confidentiality.)

Answer:

What is islamic financing

In the name of Allah, We praise Him, seek His help and ask for His  forgiveness. Whoever Allah guides none can misguide, and whoever He allows to fall astray, none can guide them aright. We bear witness that there is no one (no idol, no person, no grave, no prophet, no imam, no dai, nobody!) worthy of worship but Allah Alone, and we bear witness that Muhammad(saws) is His slave-servant and the seal of His Messengers.

Brother, the question of ‘Islamic Financing’ is too vast a subject for us to give you a detailed answer on this forum. A number of eminent Islamic scholars have written volumes on Islamic Finance.

The basic meaning of Islamic Financing would be a business, or investment, or any financial transaction which is done according to the principles and regulations of Shariah. It would basically mean a financial transaction between two or more parties without any ‘riba’ (usury and/or interest), and the business or investment which is financed would be fundamentally halaal in nature.

If you have a specific question about Islamic Financing, it would be our honor to clarify your query.

Whatever written of Truth and benefit is only due to Allah’s Assistance and Guidance, and whatever of error is of me. Allah Alone Knows Best and He is the Only Source of Strength.

Your Brother in Islam,

Burhan