Results for tag: "Gharar"

Gharar is a term used in Islamic finance to refer to a market characterized by excessive uncertainty and risk. It is prohibited in Islamic law as it is seen as a form of gambling. Gharar is defined as a contract in which the terms are uncertain, or the object of the contract is not in existence at the time of the contract, or the risk involved is excessive. Gharar is seen as a form of speculation and is not allowed in Islamic finance. This is because it is seen as a form of gambling, which is prohibited in Islamic law. Gharar is also seen as a form of exploitation, as it can lead to unfair outcomes for one of the parties involved. The Gharar market is a growing sector of Islamic finance, with many companies offering products and services that are compliant with Islamic law. Examples of companies in the Gharar market include Islamic banks, Islamic insurance companies, Islamic investment funds, and Islamic venture capital firms. These companies provide products and services that are compliant with Islamic law and are designed to reduce the risk of Gharar. Show Less Read more