Banking System in the Arab World

ISLAMIC BANKING SYSTEM

Islamic Banking refers to a system of banking that is consistent or is based on islamic law of economics and works following certain rules and regulations determined by various prominent islamic scholars and economists.

The islamic as a religion prohibit the payment of interest, usury, trading in finacial risk, and invest in business that are agains the principles of ethics. So through this system the islamic people can do all financial movements and business following all the principles and rules that are stipulated in their economy.

The principles by wich the Islamic banking system operates are based on the rules of Shariah (god's law and can not be changed by humans).

The islamic Banking system is growing rapidly all around the world, even in non islamic countries like Singapur. Also Islamic banks of Middle East countries are very progressive in Africa, Central Asian region, and in Australian financial marget due to their products and services for both muslims and non muslims.

Islamic Bank is more human friendly as compare to business friendly and today the ratio of islamic banking sector in global market is just over 3% but its anual growth rate of 15% will certain boost its market share in up coming years.

References:

• http://en.wikipedia.org/wiki/islamic_banking.
• http://www.helium.com/items/929482-explaining-the-islamic-banking-system.