Islamic finance is guided by ethical principles that differentiate it from conventional finance. In the 6 months Level 5 Certificate course, students delve into the ethical considerations that underpin Islamic finance, emphasizing the following key principles:
| 1. Prohibition of Riba (Interest) | Islamic finance prohibits the payment or receipt 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 prohibits transactions that involve excessive uncertainty or ambiguity, as this goes against the principle of transparency and fairness. |
| 3. Prohibition of Maisir (Gambling) | Islamic finance prohibits gambling and speculative activities, as they are considered detrimental to society and promote unjust enrichment. |
| 4. Promotion of Social Responsibility | Islamic finance emphasizes the importance of social responsibility and ethical investing, encouraging businesses to contribute positively to society and the environment. |
By understanding and adhering to these ethical considerations, students in the Level 5 Certificate course gain a comprehensive understanding of how Islamic finance aligns with ethical principles and promotes financial stability and social welfare.