Istithmar
General term for investment in compliance with Shariah rules.
Detailed Description
Istithmar
What is the primary objective of Istithmar?
The primary objective of Istithmar is to generate returns while adhering to the moral and ethical standards set forth in Islamic teachings.
What are the key principles guiding Istithmar?
The key principles include prohibition of riba (interest), risk sharing, ethical investments, and asset-backed financing.
What types of investments fall under Istithmar?
Types include direct investment, venture capital, real estate investment, equity participation, and Islamic bonds (Sukuk).
How does Istithmar differ from conventional investment?
Istithmar emphasizes ethical considerations and compliance with Sharia, while conventional investment often prioritizes profit maximization without regard for ethics.
What are some risks associated with Istithmar?
Risks include market risk, liquidity risk, regulatory risk, and operational risk.