Alternative finance arrangements refer to specific lending structures compliant with Islamic law, as defined under UK Finance Acts, ensuring tax levies and reliefs align with traditional interest-based frameworks.
Halal finance refers to financial and banking activities compliant with Islamic law, which prohibits activities involving interest (riba) and certain other unethical practices. It encompasses forms of funding and asset management respecting Sharia principles.
Haram, meaning forbidden by Islamic law, particularly applies to lending or borrowing money at interest. Various schemes enable Muslims to take out loans, such as mortgages, without violating this principle of faith.
In Islamic finance, Murabaha refers to a sales contract where the seller discloses the cost and profit margin to the buyer.
