Islamic principles in the context of Czech business environment

This bachelor thesis explores the potential application of Islamic financial principles within the Czech business environment. The thesis' motivation stems from the absence of a legal framework for starting a fully Islamic business in the Czech Republic, as well as the lack of Islamic financial institutions, which has resulted in limited information on opportunities for Sharia-compliant entrepreneurship. The thesis aims to assess whether, and if so, how, a business can be started and operated in the Czech Republic in accordance with Islamic law, and to analyse the available financing options. The thesis defines the fundamental concepts of Islam, Sharia law, and Islamic finance, and compares them with conventional banking. It further focuses on legal business forms in the Czech Republic that align with Islamic profit and loss sharing principles of Musharaka and Mudaraba, and describes key financial instruments such as Murabaha, Ijarah, etc. It can be concluded that the Czech secular legal framework allows for certain business models that are, to some extent, compatible with Sharia principles. However, opinions among Muslims vary when it comes to financing through conventional banking products, making it difficult to offer a universal recommendation. As a result, a practical halal alternative is KT Bank in Germany, which offers Islamic banking products and accepts foreign clients.