1. GROUP MEMBERS: SOFIA FATIMA SUNDAS SETHI SANAULLAH ZOHAIB AHMED TOPIC: ISLAMIC FINANCE 2. ISLAMIC FINANCE Islamic finance is a financial system that operates according to Islamic law. The main principle of Islamic finance is its devotion to interest or riba-free financial transactions The basic framework of an Islamic Financial System is based on elements of Shariah, Sunnah 3. SUNNAH AND SHARIAH SHARIAH is law based on the Quran that lays down certain duties and penalties for Muslim SUNNAH is actions of the Prophet (pbuh), which was initiated, performed and promoted among all his followers. 4. HISTORY The modern Islamic finance really originated in the 1960s, The Islamic Development Bank was formed to promote acceptable financial practices according to Islam. International larger banks like HSBC, UBS and Citigroup etc all have Islamic banking arms, both in the Middle East and the West. 5. finance 6. REASONS FOR GROWTH IN ISLAMIC FINANCE Muslims are starting to opt shariah complaint products. Increasing oil wealth of Muslim countries and their preference for shariah complaint investment which ultimately persuade western government to use Islamic Finance. Islamic products are attracting Muslims and non- Muslims because of their competitiveness and ethical focus. Islamic finance is going to last for long because of Islam being the fastest growing religion. 7. MUDARABA ISTINAA MUSHARAKA MURABAHA IJARA INSTRUMENTS OFFERED BY ISLAMIC FINANCE SHARIAH COMPLAINT CURRENT AND SAVING ACCOUNTS 8. DIFFERENCE B/W ISLAMIC FINANCE AND CONVENTIONAL FINANCE In Conventional Financing, lenders lend to borrowers to make a profit from the interest charged on the principal amount Islamic Financing avoids interest-based transactions 9. MAJOR EXAMPLES OF ISLAMIC FINANCE Emirates Airline regularly uses Ijara to finance its fleet expansion Banks such as HSBC, Lloyds TSB, are two notable global banks offering Islamic Finance products to retail, commercial and financial market clients. Malaysia leads the world in providing a sharia- compliant environment for savings. 10. SHARIAH BOARD A committee of 3 minimum Muslim Scholars, as an advisory board which issues a ruling that whether a particular undertaking is in accordance with prescribed principles Shariah Boards for different companies will usually have different Scholars 11. USE OF ISLAMIC FINANCE BY NON-MUSLIMS Due to the ethical focus of Islamic financing. Because it enable the fair distribution of wealth. 12. FUTURE CHALLENGES Because of the increasing popularity of Islamic financing there would be additional laws needed for fair process in the longer run. The awareness, understanding and availability of |Islamic financing needs to be improved within the Muslim communities.