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Guide to Islamic finance

The basis for all Islamic finance lies in the principles of the Sharia, or Islamic Law, which is taken from the Qur'an and from the example of Prophet Muhammad (peace be upon him). 

Islamic finance

Central to Islamic finance is the fact that money itself has no intrinsic value. As a matter of faith, a Muslim cannot lend money to, or receive money from someone and expect to benefit – interest (known as riba) is not allowed. To make money from money is forbidden – wealth can only be generated through legitimate trade and investment in assets. Money must be used in a productive way.  In order to be Sharia compliant, money must be used in a productive way.

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Sharia Supervisory Committee

To ensure that the products and services offered by Al Rayan Bank are and remain Sharia compliant, Al Rayan Bank  has appointed a Sharia Supervisory Committee (SSC) which is a committee of scholars experienced in Islamic finance and Sharia. 

The SSC ensures that Al Rayan Bank remains Sharia compliant and they will certify this by issuing a legal opinion (fatwa). All our products have been reviewed by our SSC who have issued a Sharia certificate which can be viewed on our website on the relevant product page.

Sharia compliance is at the heart of Al Rayan Bank's operations and we always welcome input from our customers.

Meet the Sharia Supervisory Committee

  • Sheikh Dr. Waleed Bin Hadi (Chairman)

    Sheikh Waleed Bin Hadi is Chairman or member of the Shariah Supervisory Boards of several Islamic financial institutions, including Masraf Al Rayan, QIB and Qatar International Islamic Bank. He joined the Al Rayan Bank Sharia Supervisory Committee as Chairman in August 2021.

     
  • Sheikh Nizam Muhammed Saleh Yaqoobi

    Sheikh Nizam is a member of a number of Sharia Supervisory Boards including the Dow Jones Islamic Index, Bahrain Islamic Bank and the Citi Islamic Investment Bank. 

     
  • Mufti Abdul Qadir Barkatulla

    Mufti Barkatulla is a prominent Sharia scholar with a strong background in economics and finance. He is a member of the Sharia Supervisory Committees of several Islamic financial institutions. 

Previous Sharia Supervisory Committee members:

  • Sheikh Dr Abdul Sattar Abu Ghuddah, Chair of the SSC 2005 - 2020

    Sheikh Dr Abdul Sattar Abu Ghuddah served as a member of the Sharia Supervisory Committee since the Bank was established, and as Chair of the Sharia Supervisory Committee from 2005 until his passing in 2020.  Sheikh Dr Abdul Sattar Abu Ghuddah was one of the world’s leading scholars in the field of Islamic finance. 

     
  • Sheikh Muhammad Taqi Usmani, Retired from the Committee

    Sheikh Muhammad Taqi Usmani was a member of the Sharia Cassation Board at the Supreme Court in Pakistan from 1982 - 2002; has been Vice President of Dar Al Uloom University, Karachi since 1974; Chairman of Islamic Economy Centre in Pakistan; Chairman of Sharia Board of Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI) and sits on a number of Sharia boards of other institutions. His advice, guidance and contribution to the development of the Bank has been invaluable and greatly appreciated
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How is Islamic finance different?

Islamic finance works differently to conventional banking and is regarded as ethical by those who use it. But how is it different and why is it considered ethical?

More information about Islamic finance

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    Sharia compliance certificates

    Each of Al Rayan Bank's accounts is fully approved by the Sharia Supervisory Committee.

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  • Preview Collection of Islamic finance words and phrases

    A - Z of Islamic finance

    From 'Ajr' to 'Zalat', read our A - Z glossary of Islamic finance terms.

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    Sharia compliance FAQ

    We are regularly asked questions about Islamic finance. 

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Frequently asked questions about Islamic finance