According to the Ofqual Level 5 Certificate in The Concepts of Islamic Finance and Banking (fast-track), the main components of a Sharia-compliant financial transaction include:
| Component | Description |
|---|---|
| 1. Sharia Compliance | The transaction must adhere to Islamic principles and guidelines. |
| 2. Asset-backed | The transaction must be backed by tangible assets to ensure transparency and avoid speculation. |
| 3. Risk-sharing | Parties involved in the transaction share both profits and losses, promoting fairness and accountability. |
| 4. Prohibition of Riba | Interest or usury is strictly prohibited in Sharia-compliant transactions. |
| 5. Ethical considerations | Transactions must align with Islamic values and ethics, promoting social responsibility and justice. |
By incorporating these components into financial transactions, individuals and institutions can ensure compliance with Sharia law and contribute to a more ethical and sustainable financial system.