Professionals and their clients do not have to be Muslims, but must agree with the restrictions on the ethical aspects of Islamic values.
Islamic jurists of the ethical restrictions on the use of standards in the Koran and the Sunna and the Hadis stories, reports on the life and words of the prophets.
Among the ethical restrictions is a ban on alcohol and gambling and consumption of pork.
Thus, Islamic investment funds never knowingly invest in companies involved in gambling, alcohol, food and products from pork.
Sometimes there are differences among Muslim jurists, since there are separate sections or schools of thought in Islam.
Islamic finance law reflects the diversity of opinions, but the majority of Islamic legal scholars agree that the Islamic finance prohibits or makes Haram documents which violate the following rules:
* Before the Riba that is best translated as the calculation of interest today, that is, income from lending money.
Money in Islam is not seen as an advantage, which it is ethically permissible for a profit. Money, rather than simply a means of exchange.
For the financing of Sharia benefit from their money, it is necessary to ensure fairness and to participate in non-cash assets.
Thus, there is no real "credit" in Islam and that any "creditor" to the ownership of assets that they finance, or earn only paid compensation.
Conventional loans, so they tend to re-cast as the sale or lease with option to purchase the operation.
* Contra gharar excessive speculation or uncertainty as to the casino, gambling or the sale of goods in a situation where the seller offers its products for sale without an adequate description for the buyer, so that makes it impossible to define exactly what the buyer paid.
In this situation, the sale and purchase agreement will be null and void in Islam.
* Contra zalim or Zulma, ie, oppression and injustice, to inequality between the parties.
This approach can be seen as an Islamic equivalent of English common law notion of justice.
Takaful as a study
One example, as already mentioned the Islamic rules of customary revision tool Takaful or Islamic insurance.
In the modern era of conventional insurance, the insurance sold, and the supplier invests the proceeds to shareholders, not necessarily policyholders.
Thus, there is a clear divide between the policyholders and shareholders.
Payments to policyholders may vary depending on the financial results, but the minimum positive return is guaranteed by contract.
In Takaful, in the sense of "security", the investors will deal with all insurance companies, as mudarib "- agent for the insured.
The proportion of insured persons in the financing of investment gains and losses.
Positive return to the policy is not legally guaranteed, as any profits will be guaranteed the same interest and offend the prohibition of Riba.
In addition, the main political life until the end of the one payment of death, which otherwise would expire without returning to the policies will not be Takaful scheme.
This is because the ban on Islamic zalim unthinkable that mudarib "All profits from investments, as well as a ban on gharar insist that all gains and losses are allocated in order to avoid excessive uncertainty about the return.
In addition, because of policies that promise with a guarantee of payment and, therefore, a violation of the prohibition of Riba is also unlikely in the Takaful system.
To prevent gharar Takaful mudarib "It seems unlikely that their resources with respect to property insurance, which in the future, but, of course, does not exist.
Risk and Development
In Singapore, more than the Islamic finance market, risk-managed prices and the competitors is also similar to conventional instruments.
For example, in the market as a Takaful "Islamic insurance" Sukuk "is" Islamic bonds "and AITAB or Al-Ijarah Andalusia Thumm Bay is" Islamic lease-purchase. "
Islamic finance seen through the lens of conventional banks and Islamic financial institutions, in fact, expected to follow the same standards of fiscal prudence, as their traditional counterparts.
Islamic financial benefits from risk reduction to avoid speculative instruments and the absence of guarantees of positive returns.
This is because this movement is determined by the prohibitions in respect of accountability, greater market concentration, the need to trade (but not legally) guarantee of return and the risk only for Islamic finance, the collapse of customer confidence with the Shariah legal products institute.
Equivalence of risk means that you can tend to price Islamic financial products to compete with their traditional partners, if they bear the costs.
To control costs and promote the development, regulatory authorities generally require changes in the conventional field of taxation of Islamic finance.
Islamic Financial Services Board to ensure the harmonization of international standards in the design of Islamic financial products.
Learn more
Basic knowledge of banking and financial services sector is a necessity for a career in investment and Islamic finance.
This can be done by a specialist in the field of education. Random events will be organized in the private sector.
At the Causeway, Malaysia consists of two well-known universities and institutes, the International Center for Islamic Education and Finance, International Islamic University Malaysia, as well as the industry with the support of Islamic Banking and Finance Institute of Malaysia.
In addition, the universities of Pakistan to the UK for courses in the region.
Prospects bright, the little, and it is the ethical responsibility of business.
So what are you waiting for?