Sharia Finance

Respectful & Efficient Sharia Lending

If you are seeking financial services that adhere to Islamic law, we can help you source and apply for a Sharia-compliant facility. This type of finance is structured to comply with Sharia principles, which prohibit the payment or receipt of interest (riba).

Rather than charging interest, a Sharia compliant facility encompasses profit-and-loss sharing arrangements, risk-sharing and asset-backed financing. This can encourage a more equitable distribution of risks and rewards between the lender and the client, whilst also adhering to Sharia Law.

Encouraging Partnerships is central to Sharia Finance and at Empire, we are committed to ensuring we connect our clients with the perfect Sharia Finance partner.

30 years ago, Sharia Finance was sparse; fast forward to now and it is a $4 trillion industry with hundreds of financial institutions located in more than 80 countries. The increased global popularity has created opportunities for cross-border investments and financial transactions.

Sharia-compliant loans, also known as Islamic finance products, come in various forms to accommodate different financial needs while adhering to Islamic principles. Below you will find some common types of Sharia-compliant loans.

Types of Sharia Finance


Mudarabah is a profit-sharing arrangement where one party (usually the bank) provides the capital, and the other party (the entrepreneur or business owner) provides the labour and expertise. Profits are shared based on pre-agreed ratios, but losses are typically borne by the capital provider.


Murabaha is a cost-plus financing arrangement often used for purchasing assets such as cars, homes, or equipment. In a Murabaha transaction, the lender buys the asset and then sells it to the borrower at a marked-up price, allowing the borrower to pay in instalments.


Ijara is a form of leasing where the lender (usually a bank) purchases an asset and leases it to the borrower. The borrower pays rental fees for the use of the asset, and at the end of the lease term, they may have the option to purchase the asset at a predetermined price.


Musharakah is a joint venture or partnership agreement in which both parties contribute capital to a business venture. Profits and losses are shared according to the agreed-upon ratios. It is often used for project financing and real estate development.


Wakala is a type of agency agreement where one party acts as an agent for another party in managing investment or business activities. The agent is paid a fee, and any profits generated are shared according to predetermined ratios.


Salam is a forward sale contract where a buyer pays in advance for goods to be delivered at a later date. It is commonly used in agriculture to provide financing to farmers for the production of crops.


Tawarruq is a technique that involves a series of transactions to create cash. A customer purchases a commodity from a bank on credit and then sells it on the open market to obtain cash. This is often used for short-term financing needs.