Islamic Finance 101
New to Islamic finance? Start here. We explain riba, gharar, and halal money principles in plain language, no Arabic knowledge required.
Core Concepts
These four principles form the foundation of Islamic finance.
Riba (Interest)
رِبًاRiba is any predetermined, guaranteed return on capital, essentially interest. It's strictly prohibited in Islam because it exploits borrowers and creates unfair wealth accumulation.
Gharar (Uncertainty)
غَرَرٌGharar refers to excessive uncertainty, ambiguity, or risk in a transaction. Contracts with unknown outcomes or speculative elements are not permitted.
Halal vs Haram
حَلَال / حَرَامHalal means permissible according to Islamic law. Haram means forbidden. Understanding the difference is essential for ethical wealth building.
Shariah Compliance
شَرِيعَةShariah is Islamic law derived from the Quran and Hadith. Shariah-compliant finance follows these principles, avoiding riba, gharar, and unethical industries.
What You'll Learn
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