Islamic Finance Tools

The contemporary reality imposes variety of financial needs, and to fulfill these needs Muslim jurists specialized in financial transactions worked hard to develop novel financial products and solutions compatible with Sharea’ meeting the requirements of individuals and corporates perfectly. Herein mentioned some of main Islamic Finance tools.

Takaful Insurance

Takaful Insurance is a product presented by Islamic banks against potential threats on properties, health, work and income. The main difference between conventional insurance and Takaful insurance is that the former has uncertainty or "Gharar" in Sharia' terminology, since the client pays a certain amount of money but doesn't know precisely what he gets in reward particularly if the client needed no compensation. In such case, all the paid amounts go to the conventional insurance firm while the client is not rewarded in this case.