Principles and advantages of the Islamic financial system

The article examines the Islamic financial model, as well as Islamic restrictions on financial instruments when investing. The aim of the work is to substantiate the advantages of the Islamic financial system over the traditional financial system. The process explored Islamic finance, which refers to the means by which in the Muslim world, including banks and other lending institutions, raise capital in accordance with Sharia or Islamic law. The main financing mechanisms are investigated and a brief overview of possible financing mechanisms often found in Islamic finance. As a result of the study, it was determined that Islamic finance is a centuries-old practice that is gaining recognition throughout the world and whose ethical nature attracts the interest of people of different faiths. Islamic ethics has solutions to many of the financial, social and moral corruptions that are currently being observed in the world.