Islamic Finance is a doctrine of finance which is based on the Shariah (Islamic Law) principles.<\/p>\n
Shariah principles can be summarised briefly within the following guidelines:<\/p>\n
Riba is not allowed.<\/strong> Riba is the doctrine of unjust gains in trade or business. In finance, interest is regarded as Riba because money is not tangible, and charging money for the borrowing of money is regarded as an unjust gain. In contrast, the payment of rent for the use of a property is regarded as a fair commercial exchange for the use of a tangible asset.<\/p>\n Gharrar is not allowed.<\/strong> Gharrar is a principle that refers to risk or uncertain gain (i.e. gambling and some forms of insurance and hedging or swap instruments).<\/p>\n The underlying asset should be Halal. This means that there is a general prohibition on investments or gains earned from the gambling industry, adult entertainment and alcohol or pork production\/consumption, etc. <\/p>\n Islamic Finance shares many similarities with conventional financing structures:<\/p>\n In recognition of the increasing size of and growing interest in the Islamic financial services industry, DIFC is positioning itself as the global hub for Islamic finance.<\/p>\n DFSA has drawn up a sophisticated framework of laws and regulations to govern Islamic finance that has created in the unique \u2018Shari\u2019a Systems\u2019 model of regulation. <\/p>\n The regulations ensure conformity to international standards such as risk and capital adequacy as set out by Basel, while adhering to Islamic finance industry guidelines and applications as set out by the Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI) and the Islamic Financial Services Board (IFSB) with regards to accounting treatment of Islamic transactions. <\/p>\n The DIFC has become a conducive environment supportive of the future development of Islamic Finance.<\/p>\n","protected":false},"excerpt":{"rendered":" Overview: Dubai Financial Services Authority – Islamic Finance<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_coblocks_attr":"","_coblocks_dimensions":"","_coblocks_responsive_height":"","_coblocks_accordion_ie_support":"","footnotes":""},"categories":[16],"tags":[18,39,32],"class_list":["post-2362","post","type-post","status-publish","format-standard","hentry","category-insight-article","tag-banking-and-finance","tag-commercial","tag-corporate"],"acf":[],"yoast_head":"\nIslamic Finance \u2013 Main Structures<\/h4>\n
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Islamic Finance \u2013 DIFC<\/h4>\n