- Prohibition of usury (riba): The main pillar of Islamic finance is interest-free transactions. Here money is seen as a medium of exchange rather than a tool for direct wealth growth. Source: "Allah made business lawful and usury forbidden" (Al-Qur'an, Surah Al-Baqarah, verse: 275).
- Profit-loss distribution (Profit and Loss Sharing): Both profit and loss— as business partners have to be shared on contract basis instead of taking certain profit of the lender. It is called 'Mudaraba' or 'Musharaka'. Source: Principle of Islamic Fiqh— "Al-Kharaju Bid-Daman" (The right to profit comes only when there is a risk of loss). (Sunan Tirmidhi, Hadith No. 1234).
- Exclusion of Uncertainty and Fraud (Gara): There shall be no ambiguity, deception or excessive risk in the contract. The quantity, quality and price of the product must be clear in advance.Source: Rasulullah (SAW) Banned 'garar' or uncertain trading. (Sahih Muslim, Hadith No. 1513).
- Investment in haram sector prohibited: Only moral and halal business can be invested in Islamic finance. Funding in harmful sectors such as alcohol, gambling, tobacco or immoral entertainment is strictly prohibited. Source: "Help one another in good deeds and fear of Allah, but do not cooperate in sin and transgression" (Al-Qur'an, Surah Al-Maydah, verse: 2).
- Asset-Based Transactions (Asset-Backed Financing): Every financial transaction must have a real product or service behind it. In Islam, not only raising money in exchange for money is legalized, but practical economic activities are given importance. Source: "You acquire wealth through business based on mutual consent" (Al-Qur'an, Surah An-Nisa, verse: 29).
References and References: 1. Al-Qur'an: Surah Al-Baqarah, Surah An-Nisa and Surah Al-Maydah. 2. Hadith Books: Sahih Muslim and Sunan Tirmidhi. 3. Book: An Introduction to Islamic Finance — Mufti Muhammad Taqi Usmani. 4. Organization: Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) Shariah Standards.