What is Islamic Finance and how does it differ from Western Finance

Jillian Godsil speaks with Dr Farrukh Habib, who gives a ‘101’ introduction on Islamic Finance and Shariah Compliant Financial Products - which turn out to be one and the same.

I invited Dr Farrukh to explain about Islamic Finance and Shariah compliant financial products which he explains are basically the same thing. However, before he begins, he points out that Islam is actually a complete code for living that has a comprehensive set of rules and principles for each and every walk of life.

“It’s not only about worship, but it governs public dealings too. In all matters, Islam provides guidance not only in regard for the man-to-God relationship, but also for the man-to-man relationships.”

I interject women and children too, and Dr Farrukh agrees.

“Islam extends to the whole family. It is a complete jurisprudence in the sense that it provides all the principles, including a complete alternative of conventional financial systems which is called the Islamic Financial system.”

I ask about the differences between Western Financial Systems and Islamic, and Dr Farrukh corrects me on my terminology. Western Financial system is better termed conventional finance as it exists in all corners of the world.

Jillian Godsil is an award winning journalist, broadcoaster and author. Her most recent book, Persons of Interest, Timestamped in Blockchain and Cryptocurrency, can be found at https://www.amazon.co.uk/dp/B08NS1LXG8