What is Islamic finance?
Many commonly used conventional financial products run afoul of Islamic prohibitions of riba (translated as usury or interest) and gharar (translated as risk or uncertainty).
As a result many Muslims are left facing a tough decision about whether to use conventional financial products that violate their faith or to forego purchasing a house or car until they can save, on their own or with help from family, enough money to purchase it outright.Islamic finance is a set of financial products designed in consultation with a Shari'ah board to comply with the fiqh al-mu'amalat (Islamic law pertaining to financial transactions). A Shari'ah board is composed of several mufti, experts in Islamic jurisprudence qualified to issue fatawa (religious decrees). If the Shari'ah board decides the products are permitted (halal), they issue a fatwa (religious decree), which certifies the product's Shari'ah-compliance.