Islamic investment is a term used for investment offered by a funding institution based on the Shariah principles as indicated in the Quran, Hadith and Sunnah. In contrast with conventional investment, Islamic investment avoids interest-based transactions (Ribawi) through the concept of asset purchase (commodity Murabahah) by the funding institution on behalf of the Investors at the request of the Issuer and selling it back to the Issuer at a profit made known to the Issuer upfront (Tawarruq arrangement).

Investment institution offering Islamic Investment must comply to the Shariah Principle and rule out the following : -