There are four major component of Islamic finance and they are Islamic banking along with takaful and Islamic capital market along with Islamic non banking Financial institutions.

1. Islamic banking will be including deposit taking and finance of institutions in order to meet the needs of customers and investors and they will be fully fledged Islamic banks and they will not be accepting interest and only entering into risk sharing agreement.

2. Takaful are based upon mutual cooperation and they are working for common welfare and general good of society and they will be based upon development of financial system of Islamic world and they are significant in managing and mitigating risk in Islamic banking and finance.

3.Islamic capital market is a special market where investment activities do not contradict the principle of Sariya and they will be providing with brokerage house and investment bank along with this Islamic Asset Management institutions and there is free riva, gharar and Maysir.

4. Islamic non banking financial institution will be playing an important role in Islamic society in steering economic development through non banking financial and they will be providing with liquidity in financial systems.

There are various kinds of instruments which are traded in Islamic financial Markets and they are Mudharabah,Wadiah,Mushsrakah, Ijar, Sukuk.

This will be the products which will be helping the market participants of Islamic world to avail the facilities of profit sharing and cost plus finance ,along with Islamic insurance and Islamic bonds.