СЗ 45 – Защита капитала и инвестиций

This Standard aims at explaining the most important ways of protecting capital and investments in Islamic financial Institutions. It also aims to explain what is permissible according to the Shari’ah and what is not permissible as well as the Shari’ah basis for it.

The word (Institution/Institutions) is used here to refer, in short, to Islamic financial institutions including Islamic Banks.

Scope of the Standard

This Standard covers the instruments and methods used to protect capital and investments from loss, decrease and destruction. 2. Definition of Capital and Investment Protection and the Difference

Between Protection and Guarantee

Protection of capital and investments means using available methods to prevent loss, decrease or destruction. It is wider than a guarantee of invested capital, as a guarantee is an undertaking by a particular party to bear any loss, decrease or destruction of the capital. On the other hand, protection refers to the safeguarding of capital.