Halal Certified

Islamic Banking Principles

Understanding the foundations of Sharia-compliant banking and how Faratech ensures every transaction aligns with Islamic values.

Core Principles

The fundamental principles that guide all our banking operations

No Riba (Interest)

All our products avoid interest-based transactions completely

Profit and Loss Sharing

Mudarabah and Musharakah principles ensure fair distribution

Asset-Backed Financing

Murabaha, Ijarah, and Salam ensure real asset backing

Ethical Investment

Only halal businesses and sectors are included

Zakat Compliance

2.5% of wealth above nisab threshold, properly calculated

Transparency

Clear disclosure of all fees and profit rates

Prohibited Activities

Activities that are strictly avoided in Islamic banking

Riba (Interest)

The charging or paying of interest is strictly prohibited. All transactions must be based on profit-sharing or asset-backed structures.

Gharar (Excessive Uncertainty)

Contracts with excessive uncertainty or ambiguity are not allowed. All terms must be clear and transparent.

Maysir (Gambling/Speculation)

Gambling and speculative trading are prohibited. All investments must be in real assets and halal businesses.

Haram Industries

Investments in businesses dealing with alcohol, pork, gambling, weapons, or other prohibited activities are not allowed.

Approved Contracts

Sharia-compliant structures used in Islamic banking

Mudarabah

Profit-sharing partnership where one party provides capital and the other provides expertise. Profits are shared according to a pre-agreed ratio, while losses are borne by the capital provider.

Common Use Cases:

Savings accounts, investment funds

Murabaha

Cost-plus financing where the bank purchases an asset and sells it to the customer at a transparent markup. No interest is charged.

Common Use Cases:

Asset financing, trade finance

Ijarah

Leasing arrangement where the bank owns an asset and leases it to the customer. At the end of the lease, the customer may purchase the asset.

Common Use Cases:

Vehicle financing, equipment leasing

Musharakah

Joint venture partnership where all parties contribute capital and share in both profits and losses according to their investment ratio.

Common Use Cases:

Business partnerships, project financing

Qard Hasan

Benevolent interest-free loan given for charitable or emergency purposes. The borrower only repays the principal amount.

Common Use Cases:

Emergency financing, community support

Sukuk

Islamic bonds representing ownership in an underlying asset. Returns come from profit-sharing or rental income, not interest.

Common Use Cases:

Investment securities, infrastructure financing

Our Sharia Advisory Board

Our independent Sharia Advisory Board oversees all products, services, and operations to ensure strict compliance with Islamic banking principles. The board provides guidance, reviews contracts, and certifies that all our activities align with Sharia law.