Islamic Mode of Financing in other Countries
(Malaysia, Iran, Sudan, Saudi Arabia)
Introduction
Islamic banking and finance may not be a totally new concept, the widespread expansion of this form of banking is certainly a fairly recent phenomena. There are more than 600 Islamic banking institutions and these institutions not only operate in Muslim countries, but have also gained footing in non-Muslim countries. Consensus forecasts expect the asset size of global IFSI to hit US$2 trillion in the next 3 to 5 years while they were varying between US$1.2 trillion and US$1.6 trillion for 2012.We will discuss Islamic Mode of Financing in * Malaysia * Iran * Sudan * Saudi Arabia
Market Share of Islamic Banking
As at June 2009, the country having highest market share in Islamic Banking was of Malaysia by 16%, the 2nd highest was of Bahrain by 14%. Iran, Pakistan and Saudi Arabia had an equal market share in Islamic banking of 4%.
Sharia Compliant Assets
On the top is Iran having largest Sharia Complaint assets. Then Saudi Arabia is on No. 2nd, then Malaysia is on No 3rd and Sudan is on No. 11.
1)Malaysia
Malaysia has dual banking system. It means that it has conventional banks as well as Islamic banks. Some conventional banks have an Islam window where they carry out Islamic operation. While some conventional banks have a separate subsidiaries whose operation are completely Islamic. There are only two full-fledge Islamic banks in Malaysia named as * Bank Islam * Bank Muamlat
Islamic Instrument/concept used in Malaysia Profit & loss sharing principles | Fees or charges based principles | Without fee principles | | | | * Al-mudharabah * Al-musharakah | * Al-murabahah * Bai bithaman ajil * Bai al-dayn * Bai al-istijrar * Al-ijarah * Al-ijarah thumma al-bai * Al-Wakalah * Al-Kafalah * Al-Hawalah * Al-ujr * Ar-rahn | * Al-Qardhul hasan * Al-Wadiah bad dhamanah |