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| Joined: | Mon Nov 21st, 2005 |
| Location: | California USA |
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While there are similarities between Islamic and western financial systems, certain norms and transactions are exclusive to Islam. In fact, some Islamic financial restrictions are severe enough to render certain western financial practices and transactions absolutely void. For instance, transactions involving riba (interest and usury) and gharar (uncertainty and excessive risk) are prohibited.
Over the years, Islamic finance has not only increased in size, but has also grown complex as finance professionals compete furiously to produce new sharia-compliant transactions and instruments. This innovation is most visible in the world of sukuk. Generally referred to as Islamic bond, sukuk signifies, speaking more accurately, an investment certificate.