Islamic finance is receiving a lot of attention in academic research as well as in global business. With reference to the tenets of Islamic Finance, discuss the appropriateness of Islamic financial products as sources of project finance.

Essentials Of Investments
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ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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Islamic finance is receiving a lot of attention in academic research as well as in global
business. With reference to the tenets of Islamic Finance, discuss the appropriateness
of Islamic financial products as sources of project finance.

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Step 1

Islamic finance is finance system that operates according to the Islamic law called Sharia.

Unlike modern finance, Islamic finance does not acquire interest for the money lent.  But the system uses a method of buying and leasing the product that the customer needs money for. The customer pays the amount in installment with interest and becomes an owner of the product.

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