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I only know one and that is No Interest.
Interest free debt is the most well known aspect of Islamic Finance because it is the most contradictory element to the conventional financial system. But the main aim of Islamic Financial system is the encouragement of the sharing of risk. Because taking risk is what justifies the profits later on. Hence, the two most favored contracts from a theoretical point of view, are Musharakah and Mudharabah.
it is a trading system based on trading commodities,services and any other known benefit trades with no RIBA or any Misleading or Deceptive dealings.
ALL TRANSACTIONS IN ISLAMIC FINANCE SYSTEM IS ALLOWED EXCEPT WHAT IS FORBIDDEN BY ISLAM.
Most definitely interest free debt, we all know about it.
The main purpose of Islamic financial system is to spread wealth all over the society and to prevent wealth concentration to some hands.
Once the wealth is concentrated to some people, they will try to control society however they want. They will try to be master of this world, which Islam does not want to happen.
This is when poor becomes poorer and rich becomes richer. This is exactly what is going on currently.
3 main principles:
Prohibition of Riba (usury, in any form)
Prohibition of Gharar (uncertainty)
All transactions should be asset-based (prohibition of speculations, money isn't an asset)
The two main themes of Islamic Financial System are -
1. Zakat Based Economy
2. Interest Free Economy
I mean conversion of Interest Based Economy to Zakat Based Economy.
Visit the below link and you will get to know where the world have reached in terms of debts. But still not ready to change the the economy on Islamic Principles.
http://www.nationaldebtclocks.org/
Most countries follow Musharakah and Mudharabah, but not on100% Islamic Principles.
Islamic mode of Finance is Intrest Free, as Almighty Allah forbidden the Riba(interest) Holly Quran. The Islamic Finance is Assest Based and sharing with other as Sirkatul Milik. Because other than Islamic Finance is based on Interest on interest that is also termed as Coumpound interest, which creat more burden on borrowers. Therefore in islam it is strictly forbidden.
It advocates justice and equality among the stakeholders by avoiding hoarding of wealth which in turn circulates freely and adds in value creation.
The main theme of Islamic financial system is commercial exchange FREE of RIBA (usury) and Gharar (uncertainty).
The financial system, whether Shariah based or otherwise, is a component/subsystem of the Economic System. All systems in Shariah / Islam, i.e. the political system, economic system, the legal system and social system etc. are interwoven and can not be separate from each other and the core theme of these systems is to uphold and support the other systems and sub-systems as well as the achievement of Maqasid Al Shariah (Objectives of Shariah).
The Objectives of Shariah are classified into three categories namely Dharuriyyah (Necessities), Hajiyyat (Requirements/Needs), and Tahsiniyyat (Embellishments).
Every system in Shariah including the Financial System and Economic System should at least ensure the achievement of Dharuriyyat which are composed of the following:
1. Protection of Faith (Deen)
2. Protection of Life (Nafs)
3. Protection of Posterity / Progeny (Nasl)
4. Protection of Property (Maal)
5. Protection of Reason/Intellect ('Aql)
The premise is that unless and until all the above necessities are fulfilled, there can not be a just and prosperous society. So all systems have to work in tandem to ensure that these necessities are met.
So for example, Zakat is a means of protecting one's Deen but also a way to protecting one's property (through purification). Similarly, interest is banned because it makes the rich richer and the poor poorer without any tangible economic activity on the part of the rich debt providers. Again this links to protection of property of the less well-off in the society. Because, if the less well-off can't sustain themselves, they will likely delve into illegal means to obtain their sustenance which will in turn threaten their Deen as well as their Nafs, their 'Aql and even possibly their Nasl and consequently create undesired imbalances in the society. Similarly, excessive consumption leads to excessive debt as seen in many economies. This if left unchecked can be disastrous for a community/nation. And that is why debt is discouraged in Shariah - the only acceptable form is either Qard Hassan or Qard that does not have contractual riba payments attached i.e. the debtor if so wishes can repay more but not if its agreed in advance.
Hope this helps.
