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Islamic Banking is a form of modern banking based on Islamic legal concepts (Shari'a) developed in the first centuries of Islam, using risk-sharing as its main method, and excluding financing based on a fixed, pre-determined return.
Islamic Banking believes in sharing profits and risks in the business instead of becoming creditors. In Islamic Banking the depositor, the Bank and the borrower all share the risks and rewards of financing business ventures. This is unlike the interest-based commercial banking system, where all the pressure is on the borrower; he must pay back his loan, with the agreed interest, regardless of the success or failure of his venture. Islam encourages investment in order that the community may benefit.
To view our latest development in Islamic Finance in the UAE and the Gulf region, please click to view our Quarterly Economic Report.
International Association for Islamic Economics:
The International Association for Islamic Economics was established in 1984 as an educational and professional organization with the objective of promoting the study and application of Islamic economics, banking and finance. It involves the reconstruction of economic and finance theory and practice in the light of Islamic principles. The Association, thus, aims to develop an integrated approach to Economics while welding together the material aspects of economic life with Islamic values and norms. Membership is open to academics, professional financiers and bankers, and students who are interested and involved in Islamic Economics, banking and finance, and agree with the aims and objectives of the Association. For more information, go to www.iaie.net.
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