Islamic banking is a form of banking based on Islamic principles. Basically, in Islamic banking it is not allowed to pay and receive interest but rather it is based on profit sharing. Islamic banks focus on generating returns on investments through investment tools that are “Shari'a” compliant.
It is our mission to take Islamic banking and finance to new heights through an unwavering focus on innovation and the desire to deliver excellence in everything we do including the development and offer of a broad and integrated range of products and services that are in perfect harmony with “Shari'a” principles.
Supporting advancements and growth in the Gulf Cooperation Council (GCC) economies and others in which we invest; and of Islamic banking and financing vehicles worldwide. Our mission and our commitment are backed by a robust financial position and a long and proven heritage of ingenuity, integrity and thought-based leadership.
Islamic banking refers to a system of banking, which is consistent with Islamic law, also called “Shari'a”, and guided by Islamic economics. In particular, Islamic law prohibits the payment and collection of interest, also commonly called “Riba” (usury). The main argument against interest is that money is not used as a commodity with which to make a profit but that it should be earned on goods and services only, not on control of money itself.
Islamic economy is based on specific features, the most important of which are as follows:
- It is creed-based: Islamic “Shari'a” allows all economic activities in the framework of protecting public interest and safeguarding it.
- It is realistic: Islam's rules fulfill all the needs of real life. That is why we find that Islamic “Shari'a” does not prohibit transactions except those involving injustice. Unless there is an express provision prohibiting it, and as long as it serves the interests of people and fulfills the realistic needs of life, every transaction is lawful.
- It is ethics-based: Man may make profit from doing business. However, when this runs against Islamic ethics and morality, it is outlawed. In addition, for an investment to be legitimate, one of the most important requirements is that its outcome must fulfil the reality of investment transactions and that it enables the Islamic Financial Institution (IFI) to state what it expects to make in profits.
However, this cannot be determined as a certainty or can one commit one's self to it, or bear any loss sustained.
The Quran Verses prescribed foundations of financial transactions to be followed by Muslims, as in Surat Al Baqarah, Verse 275: “Allah hath permitted trade and forbidden usury” and in Surat Al Nisa’, Verse 29: “O ye who believe! Eat not up your property among yourselves in vanities; but let there be amongst you traffic and trade by mutual good will”. On the other hand, the Sunnah applied these foundations practically as in his farewell speech, the Prophet (PBUH) said: “Usury of pre-Islamic ages is let fall including the usury of my uncle Al-Abbas”. From such Quran Verses and Prophet Says, Muslim Jurists educed the provisions of the financial transactions prevalent in every age.