Interest (riba in Arabic) is considered haram (forbidden) in Islam because it is seen as a form of exploitation and a violation of the principles of equality and justice. According to Islamic teachings, money should only be used as a medium of exchange and should not be used to generate more money through interest. This goes against the concept of risk-sharing and mutual cooperation in economic transactions, which is seen as a more ethical and equitable way of conducting business in Islam. Additionally, charging or paying interest is seen as a form of greed and a desire for unlimited material gain, which goes against the teachings of moderation and balance in Islam.