Sunday, July 12, 2015

What do you know about non-niterest based investment modes of Finance?

I guess this question is with reference to the modes of
investment that are complaint with the Islamic Shariah as according to the Shariah the
investment of money in interest bearing assets is not
allowed.


The options of investment that are non-interest
bearing and compliant with the Shariah include investment in the equity of companies
involved in activities considered Halal. Here the gains made are due to capital
appreciation and the dividends paid by the
companies.


Another option is buying assets like real
estate, machinery, etc and leasing them to others for their
use.


Trading in commodities which do not violate the laws
of the Shariah like wine, pork, etc. is also a permitted
investment.


Each of the above mentioned options also have
some rules that they have to adhere to for them to be Shariah compliant. More details
are provided in the source given below.

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