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From the point of view of depositors, "Investment accounts" of Islamic banks – based on profit and loss sharing and asset-backed finance – play a similar role to the "time deposits" of conventional banks. (For example, one Islamic bank – Al Rayan Bank in the United Kingdom – talks about "Fixed Term" deposits or savings accounts). [352]
Among its Islamic banking programmes is establishing "musharaka pools" for Islamic banks using its export refinance scheme. Instead of lending money to banks at a rate of 6.5% for them to lend to exporting firms at 8% (as it does for conventional banks), it uses a musharaka pool where instead of being charged 8%, firms seeking export credit are ...
Iran has 36% of the worldwide assets of the participation banks, Malaysia has 17%, Saudi Arabia has 14% and Turkey has 3.1% of the [clarification needed] market share. [ citation needed ] According to Ernst & Young , the assets of global participation banking reached US $930 billion in 2015, with growth rates declining across all regions ...
(For example, one Islamic bank—Al Rayan Bank in the UK—talks about "Fixed Term" deposits or savings accounts). [172] In both these Islamic and conventional accounts the depositor agrees to hold the deposit at the bank for a fixed amount of time. [173] In Islamic banking return is measured as "expected profit rate" rather than interest. [174 ...
The industry has been praised for turning a "theory" into an industry that has grown to about $2 trillion in size; [6] [7] [8] for attracting banking users whose religious objections have kept them away from conventional banking services, [9] drawing non-Muslim bankers into the field, [2] and (according to other supporters) introducing a more stable, less risky form of finance.
According to critic of Islamic finance, Mahmoud A. El-Gamal, one way the Islamic finance industry gets around prohibitions on the use of options is to use conventional banks/financers as a "buffer" between the haram income and its sharia obedient customers — employing conventional banks as partners or advisers and paying them with the haram ...
In 2019 the Bank achieved a net profit of QAR 3,055.4 Million, representing a growth of 10.9% for the same period in 2018. The total assets of the Bank have increased by 6.7% compared to December 2018 and now stand at QAR 163.5 Billion.
But some prominent scholars have tolerated commodity murabaha "for the growth of the [Islamic finance] industry". [6] Irfan states that (at least as of 2015) Sharia boards of some banks (such as Abu Dhabi Islamic Bank), have taken a stand against Tawarruq and were "looking at 'purer' forms of funding" (such as mudarabah). [63]