Sharia-compliant financial transactions are guided by Islamic principles that prohibit interest (riba), uncertainty (gharar), and gambling (maysir). The main components of a Sharia-compliant financial transaction according to the Rqf Level 5 Certificate in The Concepts of Islamic Finance and Banking online include:
| Component | Description |
|---|---|
| Parties | The parties involved in the transaction must be aware of the terms and conditions and enter into the agreement willingly. |
| Subject Matter | The subject matter of the transaction must be permissible (halal) according to Islamic law. |
| Offer and Acceptance | There must be a clear offer and acceptance of the terms of the transaction by both parties. |
| Certainty | The terms of the transaction must be clear and certain to avoid any ambiguity or uncertainty. |
| No Interest | Sharia-compliant transactions do not involve the payment or receipt of interest (riba). |
| No Speculation | Transactions should not involve excessive risk or speculation (gharar). |
By adhering to these principles, financial transactions can be structured in a Sharia-compliant manner, ensuring that they are in line with Islamic ethics and values.