Islamic swaps are different from the conventional swaps in that Islamic swaps are linked to asset-backed transactions such as ijarah, murabahah, and bai bithaman ajil.

Question

Quizplus · Accepted Answer

Islamic swaps, unlike conventional swaps, must adhere to Shariah principles, which prohibit interest (riba) and necessitate that all transactions be backed by tangible assets or services, such as those found in ijarah (leasing), murabahah (cost-plus sale), and bai bithaman ajil (deferred payment sale).

Islamic Swaps Are Different from the Conventional Swaps in That