Islamic finance is guided by the following principles:
Careful consideration is given to the impact they have on society and the environment.
Fairness and transparency
Emphasis is placed on fairness and transparency. For example, risks must be fairly allocated and no interest should be given or received.
Contracts must avoid uncertainty and ambiguity to ensure the underlying investments and the contractual terms and conditions related thereto are clearly agreed.
Certain activities prohibited
Investments in entities or assets whose business is gambling, alcohol, pork, tobacco, adult entertainment and military arms, or conventional banking and insurance, are not permitted.