Islamic finance and conventional finance are two distinct systems that operate on different principles and guidelines. In the context of the Ofqual Level 5 Certificate Concepts of Islamic Finance and Banking (fast-track), it is crucial to understand the key differences between the two.
| Islamic Finance | Conventional Finance |
|---|---|
| Based on Shariah principles, which prohibit interest (riba), uncertainty (gharar), and gambling (maysir). | Interest-based system where lenders charge interest on loans and investments. |
| Focuses on risk-sharing and asset-backed transactions to promote financial inclusion and stability. | Primarily relies on debt-based instruments and interest-bearing transactions. |
| Emphasizes ethical and socially responsible investing, avoiding industries such as alcohol, gambling, and tobacco. | Investments are made based on financial returns, without specific ethical considerations. |
By enrolling in the Ofqual Level 5 Certificate Concepts of Islamic Finance and Banking (fast-track) course, students will gain a comprehensive understanding of the principles and practices of Islamic finance, as well as the differences between Islamic finance and conventional finance. This knowledge will not only enhance their expertise in the field but also equip them with the skills to navigate the evolving landscape of global finance.