Many financial institutions in Saudi Arabia follow Islamic banking principles, adhering to sharia law. Islamic finance specifically defines permissible investments.
Thus, Islamic banking prohibits business activities that are legal in other jurisdictions like:
- Charging Interest
- Paying Interest
- Investments in Gambling Activities
- Investments in Forbidden Commodities such as Pork or Alcohol
Plus, sharia-compliant finance discourages contracts with excessive risk.
To implement fintech solutions within sharia, the attorneys Hammad & Al-Mehdar can guide you through the concepts and limitations in depth.
