SHARIAH-COMPLIANT FINANCE: AN ANALYSIS OF THE ISLAMIC FINANCIAL SERVICES INDUSTRY

Abstract

A study on the Islamic financial services industry is a comprehensive analysis of the financial sector that operates in accordance with Islamic principles, also known as Shariah-compliant finance. Shariah is Islamic law and code of conduct derived from the divine principles mentioned in primary sources of Islam i.e., Quran and Sunnah. Islamic finance is guided by the principles of Islamic law (Shariah), which prohibit activities such as charging or paying interest (usury) and engaging in speculative transactions. Instead, Islamic finance promotes ethical and equitable financial practices. This research highlights the substantial growth and financial soundness of the Islamic financial services industry, and it suggests a positive outlook for the sector's future. Islamic finance has gained momentum globally, attracting both Islamic and non-Islamic investors who are interested in ethical and Shariah-compliant financial solutions.