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     Question Forum :  Investment Banks Date Posted:  28 - February  -  2003




I would like to know how investment accounts work in Islamic banks and if possible any comparison between them and similar accounts in conventional banks.

Non-Islamic investment portfolios usually create a return either through interest or through speculation on shares, both unacceptable from an Islamic point of view. Islamic investments would create a return through actual participation in an enterprise and then sharing in the resulting profit. To minimise the risk of a potential loss, many Islamic investment companies only invest in development projects backed by governments.

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