Continuation
There is only a minimal
difference between these two investment approaches.
Some elements are
prohibited by the Shari’ah but not by socially responsible investment.
Thus, interest-based financial:
- instruments
- and institutions
prohibited by the Shari’ah,
but suitable
for socially responsible investments.
Nevertheless, the end
objective of both is very similar – to invest in or finance activities that are
beneficial to humanity.
3.4 OTHER POSITIVE
ASPECTS OF ISLAMIC FINANCE
Islamic finance
essentially:
- promotes financial transactions with links to the real
economy
- and abstains from financing activities that are detrimental
to society.
From the research paper of
European Central Bank
(Authors: F.Mauro, P.Caristi, S.Couderc, A.D.Maria, L.Ho,
B.K.Grewal, S.Masciantonio, S. Ongena and S.Zaher)
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