​Islamic Finance - The fundamental tenets of Islamic legal precedent
Simply put, Islamic finance refers to any financial dealings that are in accordance with Sharia law. In addition to adhering to the characteristics described above, Islamic financial products and services are not allowed to include any principles, terms, or conditions that are in direct opposition to well-established legal maxims or legal principles. These legal maxims are the guiding principles and key dimensions of Islamic law, and the majority of Muslim jurists agree that they should be followed. A good illustration of this would be the idea that the management or any other partners in an equity-based financing or investment arrangement are not allowed to guarantee the money. To accurately convey the nature of equity investment—namely, that investors in equity must accept the possibility of experiencing a loss of capital—a contract for equity must not provide any form of capital guarantee.