London School of International Business (LSIB)

What are the key principles of Islamic finance covered in the Ofqual Level 5 Certificate Concepts of Islamic Finance and Banking part time?

Key Principles of Islamic Finance Covered in the Ofqual Level 5 Certificate Concepts of Islamic Finance and Banking Part Time

Islamic finance is based on principles that adhere to Sharia law, which prohibits the payment or receipt of interest (riba). The Ofqual Level 5 Certificate Concepts of Islamic Finance and Banking part-time course covers the following key principles:

Principle	Description
Prohibition of Riba	Islamic finance prohibits the payment or receipt of interest, as it is considered exploitative and unjust.
Risk-Sharing	Parties in an Islamic finance transaction share both the risks and rewards of the investment, promoting fairness and accountability.
Asset-Backed Financing	Islamic finance requires transactions to be backed by tangible assets, ensuring transparency and reducing speculation.
Ethical Investments	Islamic finance promotes ethical investments that are in line with Islamic principles, such as avoiding investments in industries like alcohol, gambling, and pork.

By understanding and applying these key principles, students in the Ofqual Level 5 Certificate Concepts of Islamic Finance and Banking part-time course will gain a comprehensive understanding of Islamic finance and its ethical framework.