IslamicFinanceGuru Podcasts The TRUTH about Islamic finance and its critics | Ibrahim Khan
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May 6, 2025 Sohaib Ashraf, a portfolio manager at Cur8 Capital and classmate of Ibrahim Khan, puts Ibrahim in the spotlight to tackle criticisms of Islamic finance. They dive into the perception that Islamic finance merely replicates conventional systems, highlighting key differences using Islamic mortgages as an example. The discussion contrasts stagnation in traditional banking with innovative fintech solutions. They explore the role of cryptocurrencies and the importance of understanding Sharia compliance, emphasizing the need for fresh, accessible financial products to meet community needs.
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Islamic Finance's Evolution
- Islamic finance initially mimicked conventional finance to create halal alternatives.
- New fintechs now innovate from first principles solving community-specific problems.
Seek Trusted Guidance
- Ask knowledgeable, trusted scholars if unsure about Islamic finance products.
- Make decisions with prayer (istikhara) and then commit to your choice.
Reasons for Higher Costs
- Higher costs in Islamic finance mainly result from smaller scale and niche demand.
- Lower scale means higher fees compared to large conventional funds like Vanguard.