What is izazaat?

Izazaat is a term commonly used in Islamic finance. It refers to permission or authorization granted by a Mufti (Islamic scholar) for specific types of transactions or investments that may be considered questionable from a Shariah (Islamic law) perspective.

In Islamic finance, it is important for financial products and services to comply with Shariah principles, which prohibit certain activities such as the charging or paying of interest (riba) and engaging in excessive uncertainty (gharar). Izazaat helps provide guidance to individuals and businesses seeking to ensure that their financial activities are in line with Islamic principles.

Islamic scholars issue izazaat based on their understanding and interpretation of Shariah principles, taking into account the specific circumstances and details of the transaction or investment in question. By obtaining izazaat, individuals and businesses can have greater confidence that their financial activities are permissible under Islamic law.