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Sunday, March 25, 2007

Islamic Banking

Islamic Banks operate under Sharia Law. Among other distictives, They have a fee based system, because charging interest to other Muslims is spoken against in the Quran.

There is even an Islamic Public Accountant certification.

According t0 Wikipedia,

Islamic banking refers to a system of banking or banking activity that is consistent with Islamic law (Shariah) principles and guided by Islamic economics. In particular, Islamic law prohibits:

  • usury, the collection and payment of interest, also commonly called riba in Islamic discourse.
  • Generally, Islamic law also prohibits trading in financial risk (which is seen as a form of gambling).
  • In addition, Islamic law prohibits investing in businesses that are considered unlawful, or haraam (such as businesses that sell alcohol or pork, or businesses that produce media such as gossip columns or pornography, which are contrary to Islamic values).

In the late 20th century, a number of Islamic banks were created, to cater to this particular banking market.
By 2005 there were at least 300 Islamic Banking Institutions. It is a 2 billion $ business, expected to be 4 Billion $ by 2015.

A short list of Islamic Banks

  • Dubai Islamic Bank. (UAE)
  • Al Rajhi Bank ( Saudi Arabia)
  • Finanace House (Kuwait)

here is Zawya's Islamic Bank Index

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