What is Sharia Finance?

By David Nelson Partner at The Business Clinic

Many people, when asked for their understanding of what Sharia-compliant finance means will say, “You don’t pay interest”. It is perfectly true to say that Sharia-compliant funding does not allow for the charging of interest (whether called that or by a less emotive term such as “finance charge”), but it does not mean that the entity providing the finance isn’t entitled to earn a return on their investments.

Although the prohibition of the charging of interest on loans is central to Sharia law on finance, there is much more to Islamic banking than that. For example, there is a requirement on those who make a profit through business to contribute towards those less well off, and the need to strive for a more equitable distribution of income and wealth and increase equity participation in the economy. Sharia principles on finance integrate a social justice ethos into the regulation of economic and financial relationships.

These principles are not exclusive to Islam, and our Sharia-compliant fund is similarly not limited to any particular religious or ethnic group.

Introduction to Sharia Finance

Financing Sharia Enterprise is part of a national, government-led campaign to help people who want to start a business, by providing finance and other advice and support both before and after you start your business.

Financing Sharia Enterprise is a Sharia-compliant alternative to interest-based credit and loans.

All funding decisions are overseen by a Sharia Advisor, who carries out a regular audit to ensure continuous compliance.

Only ethical investment principles are used to make financing decisions – with real people, not computers!

We consider all types of business ideas, from web-based businesses to electric bike hire, and will help you along every step of the application process.

If you have a grand business idea and need Sharia-compliant funding, enquire now on 01772 367 367 or email us at This email address is being protected from spambots. You need JavaScript enabled to view it.