By Dr Muhammad Imran Ashraf Usmani
Abstract
Islam is a complete code of life. It not only lays down rules for religious affairs but it also covers every aspect of human activities including economic matters. It not only bans riba and gharar but also all ancillary practices which under the subterfuge of trade may surreptitiously be adopted to dodge the ban. It has, therefore, specified the types of transactions which should not be undertaken and closed all back doors for trespass of these evil practices into Muslim economic arena. It is on account of these restrictions that risk in Islamic finance is well managed and the system remains immune from the ravages of the storms which often appear on the financial firmament of the world.
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