Ethical Investing (Islamic perspective)
Aligning investment with Islamic values, excluding prohibited industries.
Detailed Description
Ethical Investing (Islamic perspective)
What are the core principles of ethical investing in Islam?
The core principles include the prohibition of riba (usury), necessity for Shariah compliance, and emphasis on social justice and welfare.
What types of activities are prohibited in Islamic ethical investing?
Prohibited activities include investments in alcohol, gambling, pork, and any form of speculation or excessive uncertainty (gharar).
How does risk sharing work in Islamic ethical investing?
In Islamic ethical investing, both the investor and entrepreneur share the risks and rewards of an investment, promoting partnership and accountability.
What role does Zakat play in ethical investing from an Islamic perspective?
Zakat is a form of almsgiving where investors are encouraged to allocate a portion of profits to charity, enhancing social equity and fulfilling religious obligations.
What distinguishes ethical investing in Islam from conventional investing?
Ethical investing in Islam integrates moral values into financial decision-making, avoiding interest-based transactions and prioritizing social responsibility, unlike conventional investing.