COMPARATIVE ANALYSIS OF THE PRINCIPLES OF TRADITIONAL AND ISLAMIC FINANCE

Аннотация

This article provides a comparative analysis of the key principles underlying traditional Western finance and Islamic finance. The two financial systems are examined in terms of their foundational philosophies, practices around interest and risk-sharing, ethical constraints, and governance models. Key areas of similarity and difference are highlighted. The analysis reveals that while both systems aim to facilitate economic activity, significant disparities exist in their fundamental principles. Islamic finance is built upon religious tenets emphasizing risk-sharing, the prohibition of interest, and ethical constraints on permissible investments.