IslamicFinance.de

The Borsa Istanbul Private Market, a year-old platform for bringing companies and investors together, is a leading example of Islamic finance, the exchange’s CEO Tuncay Dinc has said.
Speaking at the G20 forum on Islamic finance on Wednesday, Dinc said: “The Islamic finance approach to risk- and profit-sharing makes it an important resource for investors who seek the greater security that this kind of finance affords.”
Islamic finance, which does not involve charging or paying interest, uses a model in which trade is backed by real assets and money is merely a medium of exchange rather than a commodity to be traded.
Under this system, the funds invested are used on a profit-and-loss sharing basis under models known as musharakah – a joint enterprise where risk and rewards are shared rather than interest paid on a loan – and mudarabah, where one party supplies funding and an agent manages a specific trade.