Islamic Banking: Pre-requisites & Requirements to Establish Islamic Division within BankMuscat SAOG

Al-Ajmi, Wafa (2007) Islamic Banking: Pre-requisites & Requirements to Establish Islamic Division within BankMuscat SAOG. [Dissertation (University of Nottingham only)] (Unpublished)

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Abstract

Islamic banking is a new industry that has been expanding globally. Currently, there exist

more than sixty banks and financial institutions that offer Shariah complaint products. A

few among them are being operated under the Islamic rules and regulations. However,

most of them practise in a dual system. Since Islamic finance is closely related to religion,

it is different from conventional banking in many aspects. The main difference is that

Islamic banks do not pay or receive interest. To satisfy the Islamic principles, Banks and

financial institutions have developed new instruments satisfying the Shariah requirements

and regulations. Through this study we find that the products offered by Islamic Banks are

not the best solutions that capture the principles of the Shariah rules. Further, to reach the

ideal financing solutions, banks need to move away from the mark-up products to equitybased

solutions. With regard to the situation in Oman, political control restricts banks from

offering interest-free products. Nevertheless, banks are trying to find ways to overcome

this restriction.

Item Type: Dissertation (University of Nottingham only)
Keywords: Islamic Banking, The differences between Islamic and Conventional banks
Depositing User: EP, Services
Date Deposited: 19 Nov 2007
Last Modified: 25 Oct 2016 00:53
URI: http://eprints.nottingham.ac.uk/id/eprint/20994

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