The paper “ Development, Competitive and Product Innovation Analysis of Islamic Banking” is an excellent variant of the case study on finance & accounting. Islamic banking is banking activity, which is consistent with principles of Islamic Shariah, and their practical application that is meant to develop the whole scope of Islamic economics. Specifically, some banking institutions call it Shariah-Compliant Finance (Nzibo, 2014). Since the Shariah, principles prohibit floating or fixed payments or acceptance of any fees or interests (usury or riba) on any loanable finance, the banks participate in the sharing of losses or profits with the borrower.
It is important to note that although Islamic principles have been applied by various historical Islamic economies at varying degrees, it is only in the twentieth century that their usages have become widely applicable in the Islamic community (Sailan & Muslim, 2009; Iqbal & Molyneux, 2006). According to the report by Ernst & Young, Islamic Banking has been rising and gaining a lot of popularity in both Muslim and non-Muslim communities. In this regard, this discussion has chosen three prominent banks in the Gulf region to analyze their development, and competitiveness and evaluate their product innovativeness.
It should be noted that the GCC countries have been accounting for about 56% of the total revenues of Islamic banks. Based on McKinsey's evaluation, it has been estimated that, by 2015, more than half of all business sectors in the GCC region will become Shariah-compliant. Nonetheless, over 20 Islamic banks in the region have grown by 20% (Khatib, 2010)Characteristics of Islamic BankIslamic banking is a banking system that is based on Islamic Shariah principles in the whole guidance of Islamic Economics.
It is found on two basic principles: prohibition of Interest collection and sharing of loss and profits between the bank and the customer. Generally, Islamic banking espouses certain features that normally distinguish it from conventional banking. The first characteristic of Islamic baking is to avoid riba (interest) (Lewis, 2013).
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