Islamic Banking - Mansoor Hussien

Islamic banking is policy comes from sharia low. Sharia is the moral code and religious law of Islam. It is forbidden in Islam and anybody using riba (interest) .Therefore if a person takes a loan he must pay the same amount he took, but if he pays more than it will be riba (interest). Therefore Islamic banks cannot use interest in loans or any other kind of products. Also in Islam it is forbidden in Islam to investment something that is haram (forbidden), for example the bank or Islamic bank cannot investment in alcohol or anything is Islam had forbidden it. Islamic banking has many banking products and here are some:

Mudarabah  (profit sale)

Murabahah  (join partner in investment)

Bai' al 'inah (sale and buy-back agreement)

 

 Islamic Banking in UAE:

The first Islamic bank in UAE was Dubai Islamic bank in 1975 and from that Islamic banking was growing in UAE. UAE represent 30% of global Islamic banking.  Here are some Names of Islamic banks in UAE:

Dubai Islamic bank

Abu Dhabi Islamic Bank ADIB

Al Hilal Islamic Bank

Ajman Islamic bank

Emirates Islamic Bank

Noor Islamic Bank

Sharjah Islamic Bank SIB

Comparing Islamic banking to Conventional Banking:

Conventional Banking uses interest in the Islamic banking forbidden to use interest. Islamic banks cannot offer fixed return on investment because they cannot know they are going to gain or profit. PLS is profit and loss sharing which means the bank will give you the money for opening the business but no matter what happen if they gain or loss they both share them and also they share the risk but in the conventional banking does uses this kind of system what they do is give loan to the investor if he gain profit or loss he must money full amount he took plus the interest so the risk for investor is higher because he might loss very thing.