Islamic Banking

 Islamic Banking global estimates

US$200Billion+
 More than 250 Islamic Financial
Institutions in 27 Muslim countries and
16 Non Muslim countries
 Islamic Banking is based on the
principles and spirit of the Sharia’h
(Islamic Law derived from the Koran
Islamic Banking cont’d…..
 Islamic Business and Banking practices
date back to seventh century
 Islamic concept of Banking 1973 First
Dubai Islamic Bank of Bahrain
 Many Western concepts of Banking not
acceptable
 Collection of interest is sinful
Islamic Banking cont’d
 Activities supporting alcohol, tobacco,
gambling and armaments are not permitted
 Islamic Banks co-governed by religious
leaders-scholars
 Law of Prohibition on interest is prohibited
leading to injustices
 Interest free loans (Benevolent Loans) based
on profit sharing/ratio, fees & commissions
Islamic Banking cont’d….
 Acceptance of services rendered and
providers of funds earn a profit on
investment as opposed to interest
 Profit-Loss sharing ratio varies most
common 80% for provider & 20% for
borrower
 Visit www.islamic-banking.com