How is Islamic financing different from conventional financing?
The most important difference between Islamic and conventional financing is the prohibition of interest in Islamic financial transactions. Islamic financing activity is based on the trading principle of buying/selling assets.
What are the basic rules of Islamic finance?
- Forbiddance of Interest (Riba):
Interest must not be charged or paid on any financial transaction as it is deemed unlawful
- Restriction on Uncertainty (Gharar):
Excessive uncertainty in contractual terms and conditions is forbidden
- Prohibition of Forbidden Activities:
Gambling, liquor, pork, hoarding, speculation, etc. are deemed unlawful
- Profit & Loss Sharing Mechanism:
Both parties in a financial transaction must share the risks and rewards of the transaction
Is Islamic Finance meant for Muslim entrepreneur only?
No, Islamic finance can be availed by any entrepreneur, regardless of religious beliefs.
How does GroFin ensure that its activities are Shariah compliant?
GroFin has a Sharia Compliance Officer who is a Chartered Professional in Islamic Finance, and also employs a separate independent Shariah scholar. Both serve to ensure that GroFin’s products and its activities comply with Islamic rules at all times.
Does GroFin hold Sharia approval (Fatwa) for its Islamic financing product?
Yes, GroFin has obtained the requisite Shariah approval from the General Iftaa’ Department of Jordan to deal in the Islamic product.