Islamic finance

The basis for all Islamic finance lies in the principles of the Sharia, or Islamic Law, which is taken from the Qur'an and from the example of Prophet Muhammad (peace be upon him). The Islamic form of finance is as old as the religion of Islam itself.

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Central to Islamic finance is the fact that money itself has no intrinsic value. As a matter of faith, a Muslim cannot lend money to, or receive money from someone and expect to benefit – interest (known as riba) is not allowed. To make money from money is forbidden – wealth can only be generated through legitimate trade and investment in assets. Money must be used in a productive way.  In order to be Sharia compliant, money must be used in a productive way.

The principal means of Islamic finance are based on trading – it is essential that risk be involved in any trading activity. Any gains relating to the trading are shared between the person providing the capital and the person providing the expertise.

The Sharia Supervisory Committee

To ensure that the products and services offered by Al Rayan Bank are and remain Sharia compliant, Al Rayan Bank  has appointed a Sharia Supervisory Committee (SSC) which is a committee of scholars experienced in Islamic finance and Sharia. Learn more about the background of our SSC members.

The SSC ensures that Al Rayan Bank remains Sharia compliant and they will certify this by issuing a legal opinion (fatwa). All our products have been reviewed by our SSC who have issued a Sharia certificate which can be viewed on our website on the relevant product page.

Sharia compliance is at the heart of Al Rayan Bank's operations and we always welcome input from our customers.

Find out more about the relationship between Islamic finance and ethical banking

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