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Islamic Finance: The solution to global economic crisis?

Published by Afterschool.my on Aug 13, 2013, 12:35 pm

Concepts of Islamic Finance have been around since the origination of Islam itself. It was in the 1970s when the Islamic Development Bank promoted this as an acceptable financial practice according to Islam. While most conventional banking and finance systems thrive on capitalist ideals, Islamic finance prohibits the taking or receiving interest at exorbitant rates and investment in non-ethical businesses such as alcohol, pork-related products, gambling, and so forth. In this partnership of trust, risk is shared between at least two parties.

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