PRINCIPLES OF ISLAMIC FINANCE AND THEIR ROLE IN THE MODERN ECONOMY

Abstract

This article analyzes the theoretical foundations of Islamic finance, its core principles, and their role in the modern economy. The study examines key concepts such as the prohibition of interest (riba), risk-sharing, asset-backed financing, and ethical responsibility. It also highlights the differences between Islamic finance and conventional financial systems, as well as its role in ensuring economic stability. The findings suggest that Islamic finance can serve as an alternative solution to contemporary economic challenges.