"Like conventional finance, Islamic finance offers a comprehensive suite of products across the financial landscape, ranging from asset and wealth management to investment banking, commercial banking, and personal financial services. Providers that offer financial products and services must ensure they comply with core Islamic principles, also known as Shariah laws. The major differences between conventional and Islamic finance are the avoidance of interest-based (Riba) activities, the relationship between risk and profit, and the focus on ethical and social responsibilities of financial institutions. For example, Shariah laws prohibit investments in alcohol, gambling, pornography, tobacco, weapons, and pork products. Instead of paying interest, where the focus of a conventional bank is to manage its risk by looking at the repayment ability of a borrower and adequate cashable security in case of default, banks that provide loans under Islamic finance have a totally different mind-set."
We will be covering Islamic finance in coming weeks in 401. This is just a small taste to whet your appetite ;) want to see my new page on Islamic Finance thanks to Irfan Anwar