Islamic banking is based on a set of principles linked to Shari’a, ethical, moral, social and economic standards, most important of which are:
- That financial transactions are, in principle, permissible,
- Prohibition of Riba (usury),
- Prohibition of Gharar (deception and sale of risky assets),
- Prohibition of trading in Haram (prohibited) products and services,
- The need to be linked to real economy,
- The adoption of the risk-sharing principle in contracts for the sale and sharing of profits and losses in Musharaka contracts and profit-sharing in Mudaraba contracts,
- Prohibition of the sale of items that are not actually acquired,
- As well as other Shari’a principles related to Islamic finance operations.