Global opportunities for every client. The relevance of Islamic bank products as an alternative in the financial market
Islamic Bank – a bank conducting its banking activities within the framework of Sharia law.
Islamic Bank does not participate in transactions in which the following conditions are present:
• production and sale of alcoholic, drug and tobacco products;
• raising and selling pigs, as well as the production of non-halal products;
• financing of the sphere of entertainment and gambling.
Principle of operation
Investors turned their attention to Islamic banking in the difficult conditions of the crisis, and more and more people are trying to understand in more detail the difference between this system and traditional banking and financial instruments for doing business. The closest to Islamic banking is such a banking form as project investment associated with equity participation and risk sharing. This technique assumes that the Islamic bank does not receive interest and must more carefully study the client who applied for investment, his business plan and analyze the possible risks.
Islamic banking strictly prohibits operations with swaps, futures, as well as operations with all categories of services and goods that have not yet been produced – operations are carried out only with tangible and intangible assets that are currently available.