Takaful is a type of Islamic insurance based on the principles of mutual cooperation, shared responsibility, and solidarity. It ensures that policyholders are protected without engaging in prohibited activities.

Islamic finance promotes ethical investing by avoiding sectors such as alcohol, gambling, tobacco, and weapons. Investments must comply with Shariah guidelines and promote social responsibility.

Islamic finance principles require transparency, fairness, and full disclosure in financial transactions. Contracts and agreements should be free from ambiguity and ensure the consent of all parties involved.

Islamic finance emphasizes real economic activities and discourages speculative behavior and excessive risk-taking. Investments should be backed by tangible assets, ensuring a more stable and sustainable financial system.

Shariah boards or committees consisting of Islamic scholars oversee the compliance of financial institutions and products with Islamic principles. Their role is to provide guidance and ensure adherence to Shariah guidelines.

The global Islamic finance industry has witnessed significant growth, with Islamic financial institutions, sukuk issuances, and Islamic indices becoming increasingly prominent worldwide.