THE ROLE OF ISLAMIC FINANCE IN A MARKET ECONOMY

This paper aims to determine Islamic finance refers to investments that are permissible in accordance with Sharia, the Islamic law. Sharia law views money as a measuring tool for value and not an “asset” itself. “It does not permit receipt and payment of riba(interest), gharar (excessive uncertainty), maysir (gambling), short sales or financing activities that it considers harmful to society” (IMF website.)