Reposted from The Conversation under a Creative Commons license.
Interest fuels the financial world. The money sitting in your bank account accrues it, and the credit cards in your wallet charge it. If you ever want money quick, you’re going to being paying a decent amount of interest for having that money now rather than later.
But under Islamic law, interest is explicitly forbidden. In fact, the guidance comes directly from the Quran.
So how do finance, debt and all of the ways we get money in the conventional banking system work if you can’t charge interest?
The University of Queensland’s Mamiza Haq explains.
*From S&P Global Ratings – Islamic Finance Outlook 2018 Edition