About Islamic Banking
"Islamic banks operate in the Middle East, Europe, Asia and Africa. At the threshold of the 21st century, Islamic banks had about US $700 billion in funds under their management"
A few decades ago, modern banking and financial institutions that encompass Islamic values within their principles and practices seemed to be merely a remote dream. Today, however, Islamic banking has become a viable financial approach that attracts an increasing amount of capital investment. As a concept Islamic Banking was developed as a result of the religious prohibition of the payment or receipt of interest. The fundamental principles of Islamic Banking go back over one thousand four hundred years. They are set out in Shari'a law and are enshrined in the Qur'an, the Hadith and the Sunna. Today, these principles form the basis of the contemporary Islamic Banking range of Islamic financial products & services.
There is no standard way of grouping Islamic Financial Institutions, but in terms of services rendered, today Islamic Financial Institutions can be divided into the following broad categories:
|1- Islamic Banks.
||2- Islamic Windows.|
|3- Islamic finance/Investment Banks.
||4- Islamic Mortgage companies.|
|5- Takaful Companies.
||6- Mudarabah Companies. |
|7- Islamic investment funds