Islamic Banking or Shariah Banking  are banks which obey the Islamic principles in their operations.  The term “Islamic banking” means  a system of banking or banking activity that is compatible with Islamic law (Shariah) principles and directed by Islamic economics.

Especially, Islamic law prohibits usury, the taking and giving  of interest, also commonly called “riba”  in Islamic sermon.   Besides, Islamic law bans investing in trades  that are accepted unlawful, or haraam- such as businesses that selling  alcohol or pork, or businesses that producing  media such as gossip columns or pornography, which are against  to Islamic values.

Moreover, the Shariah prohibits what is called “Maysir” and “Gharar”.  Maysir is included in contracts in which the ownership of a goods depends on the happenings  of a destinated, uncertain event in the future, whereas Gharar describes risky  dealings.

Both concepts cover extreme danger and are assumed to further uncertainty and deceitful manners.  Thus, the use of all conventional derivate means is unsuitable in Islamic banking.  In the end of 20th century, a lot  of Islamic banks were brought into being  to serve in this banking industry.

Islamic Banks In Dubai
Dubai Bank
Dubai Islamic Bank DIB
Emirates Islamic Bank
Noor Islamic Bank
Sharjah Islamic Bank SIB

Abu Dhabi Islamic Bank ADIB
Al Hilal Islamic Bank
Ajman Islamic Bank

 

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