Sharia compliance Q&A

We are regularly asked to explain the differences between Islamic and conventional finance. Here, Al Rayan Bank's Head of Sharia compliance, Samir Alamad, answers some of the most common questions.

Question  
How is Sharia compliant finance different? Watch video
Why are assets important to Islamic finance? Watch video
How does the Bank guarantee Sharia compliance? Watch video
What qualifications do you have for your role? Watch video
Who are the members of the Sharia Supervisory Committee Watch video
What is the role of your Sharia Supervisory Committee Watch video
Is the guidance of your SSC compromised by them being paid? Watch video
How are Sharia decisions made? Watch video
What happens if there are any Sharia compliance queries? Watch video
How are Islamic banks different? Watch video
How are new products developed? Watch video
What are the principles of Islamic finance? Watch video
How do Islamic banks invest their customers' money? Watch video
I am with a conventional bank but don't take interest.  Is that Sharia compliant? Watch video
How important is it, as a Muslim, to avoid interest? Watch video
What is wrong with interest-based system? Watch video
How do Islamic home finance products work? Watch video
How is Islamic home finance different to a mortgage? Watch video
How are the fees for Islamic home finance different? Watch video
What happens if I want to settle my home finance early? Watch video
What happens to my house if the Bank stops trading? Watch video
What happens in a negative equity situation? Watch video
Why do Islamic banks use conventional indices as benchmarks for home finance? Watch video
Why don't Islamic banks use local rental rates as benchmarks for home finance products? Watch video
Doesn't your home finance product involve two contracts in one, which is prohibited? Watch video
As partners in a property, why is the customer responsible for buildings insurance and maintenance? Watch video
How do Islamic savings accounts work? Watch video
How does 'expected profit' work for long-term savings accounts? Watch video
What does the bank do to ensure that the customer gets the profit they expect? Watch video
For long terms savings, what happens if the Bank can't pay the profit it expected to? Watch video
Has the Bank ever failed to pay expected profit rate? Watch video