assets

The global financial landscape is increasingly recognizing the resilience and ethical appeal of Islamic finance. No longer confined to specific geographic regions, Islamic finance assets have grown into a multi-trillion dollar industry that attracts both Muslim and non-Muslim investors seeking socially responsible investment (SRI) opportunities. Unlike conventional finance, which is driven primarily by interest-based lending, Islamic finance is rooted in tangible assets and ethical principles derived from Sharia (Islamic law).

Understanding Islamic finance assets requires a shift in perspective. It moves the focus from “money as a commodity” to “money as a tool” for facilitating productive economic activity. This article explores the core principles, the primary types of assets, and why this sector continues to outperform many traditional benchmarks.

---

The Foundational Principles of Islamic Assets

To grasp how Islamic assets function, one must first understand the prohibitions that shape them. Sharia-compliant finance is built on several pillars that ensure fairness, … Read more