ABSTRACT
Chapter 1: The concepts of Islamic finance are discussed in this chapter. It explains that Islamic finance is a sort of financing that must adhere to Shari’ah law (Islamic Law). This also extends to investments that are permitted by Shari’ah law. Islamic finance as we know it now arose in tandem with the establishment of Islam. However, it was not until the 1990s that a proper Islamic financial market was established. As of December 2019, the Islamic finance sector has been observed to be increasing at a rate of 15%–20% per year, with Islamic financial institutions managing approximately $2.5 trillion.
