Islamic banking is a banking system, which provides banking services and products in line with the rules and principles of Shari’a and is conducted under direct supervision of Shari’a scholars.
Islam is a complete system covering guidelines for all aspects of life including. Islamic Banking which is an element of Islamic economic system. It is pertinent to mention that Islamic banking not only prohibits the collection and payment of interest but it also restricts from investments in businesses that are considered unlawful in Islam, such as production of alcohol, supply of pork, or media entertainment channels.
At present Islamic banking is one of the fastest-growing segments of the worldwide financial system, extending across the Middle East, South East Asia, Africa and Europe. It promotes, develops and applies Islamic principles, law and traditions to financial, banking and business transactions and encourages investment companies to operate in line with Shari’a’s guidelines. Introduced in the Sultanate of Oman in late 2012, Islamic banking segment has matured rapidly with customers keen to avail or convert their banking requirements.