Perception of Islamic Financial System: Its Obstacles in Application, And Its Market (Manuscripts) (Industry Overview‪)‬

ABSTRACT It is often misunderstood that the Islamic financial system involves only the absence of interest and only applies to those who practice the Islamic faith. Although the paying or receiving of interest is strictly forbidden to the many million practicing Muslims all over the world, this system can be an alternative to the existing method for everyone. Further, the concept of Islamic finance involves more than zero interest. There are other principles such as prohibition of guaranteed earning, transactions to comply with a set of Islamic laws known as Shari'a, and the emphasis on the element of business risk.