What is the First Islamic Bank in the World

What is the First Islamic Bank in the World ? In 1975 Dubai Islamic Bank (DIB) Created history when it became the first commercial Islamic bank  in the world.

What is Islamic Banking concept ?
Islamic banking is defined as banking system which refers to with the true spirit, ethos and value system of Islam and governed by the principles laid down by Islamic Shariah.
Interest free banking is a narrow concept denoting a number of banking instruments or operations which avoid interest.

Islamic banking or Islamic finance or Sharia-compliant finance is banking or financing activity that complies with Sharia or Islamic laws and its practical application through the development of Islamic economics.”

What are the types of Islamic Banking ?
  • MURABAHA.
  • IJARAH. .
  • IJARAH-WAL-IQTINA. .
  • MUSAWAMAH.
  • ISTISNA A.
  • MUDARABAH.
  • MUSHARAKAH.

 

Dubai Islamic bank become the pioneer in offering  Shariah compliant Islamic Banking products to its customer.

DIB came into existence by a decree issued from then-ruler of Dubai, the late Sheikh Rashid bin Saeed Al Maktoum,

Before Dubai Islamic Bank foundation there was no other bank offering Islamic banking products and people had to really on  interest based commercial bank products only.

After almost 40 off years of operation  DIB is still setting the standards for others to follow.

The concept of Islamic banking has gathered momentum in the Arab world and internationally.

In the western countries like USA and UK and Canada people are very keen to use Islamic banking products also since they are Riba free.

How many Islamic banks are there in the world?

There are a total of around 1oo Islamic Banks in the world out of which 42 are from Asia region.

Read also

In current era Islamic Banks are offering products based on true Islamic principles these. products includes;-

  1. Mortgage Loan.
  2. Personal Loans.
  3. Car Ijarah (Auto Loan).
  4. Takaful (Islamic Insurance)
  5. Sukuk (Islamic Bonds)

 

 

 

Leave a Comment