Prohibition of Riba

“They say, ‘Trade is just like interest.’ But Allah has permitted trade and forbidden interest.”
(Qur’an, 2:275)

The prohibition of riba (interest) is one of the most frequently discussed tenets of Shariah investing. Mentioned several times in the Qur’an as a serious offense, riba is considered exploitative. The foundation of its prohibition lies in the belief that interest creates an unequal relationship between lender and borrower, allowing the lender to accumulate wealth without bearing any risk.
Therefore, Shariah-compliant investors strictly avoid earning or charging interest in any form.