Islamic finance is guided by principles that are rooted in ethics and morality. In the Ofqual Level 5 Certificate Concepts of Islamic Finance and Banking part time course, students are taught to uphold these ethical considerations in their practice. Some of the key principles emphasized in Islamic finance include:
| 1. Prohibition of Riba (Interest) | Islamic finance prohibits the charging or paying of interest, as it is considered exploitative and unjust. Instead, transactions must be based on profit-sharing and risk-sharing principles. |
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| 2. Prohibition of Gharar (Uncertainty) | Islamic finance also prohibits transactions that involve excessive uncertainty or ambiguity. Contracts must be clear and transparent to ensure fairness for all parties involved. |
| 3. Prohibition of Maisir (Gambling) | Speculative transactions and gambling are strictly prohibited in Islamic finance. Investments must be based on real economic activities and productive assets. |
| 4. Promotion of Social Responsibility | Islamic finance encourages ethical and socially responsible investing. Financial institutions are expected to consider the impact of their investments on society and the environment. |
By adhering to these ethical considerations, students in the Ofqual Level 5 Certificate Concepts of Islamic Finance and Banking part time course learn to conduct their financial activities in a manner that is not only compliant with Islamic principles but also promotes fairness, transparency, and social responsibility.