One of the principles of Islamic Finance is that

Question

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One of the fundamental principles of Islamic Finance is the prohibition of earning interest (riba). Instead, investments are made in assets that generate profits, which can then be shared between the investor and the entrepreneur. This ensures that risk is shared and that the investor has a stake in the success of the enterprise. Speculation is also discouraged, as it often involves taking undue risks and profiting from uncertainty, which goes against the principle of fairness and justice. While returns on investments are not guaranteed, there are mechanisms in place to ensure that they are fair and equitable, and that losses are shared as well.

One of the Principles of Islamic Finance Is That