Starting in the Name of Allah,

The Most Beneficent, The Most Merciful

MAZHAR ALI BOKHARI

Head of International Operations
& Strategic Planning Division

GULF AFRICAN BANK LIMITED

Nairobi, KENYA
At AlHuda CIBE Awareness workshop
B.Z University - Multan
Phone Nos. +254 20 2740000 / +92 321 4402900
Email: mazhar.bokhari@hotmail.com
mazhar.bokhari@gulfafricanbank.com

Honorable Guests, Participants, Ladies & Gentlem

Thank you for giving me the honor

of presenting an overview of Islamic
Banking

Importance of Trade in Islam

Islam has given an immense
importance to trade
The nobility of this profession
is obvious from the fact that it
was the chosen profession of
prophet Muhammad (PBUH).

Before explaining the

concept what is Islamic
Banking the elaboration of
concept why Islamic
Banking is very important.
Islam is a complete code of
life that provides guidance

WHY ISLAMIC BANKING

The primary objectives of Islamic

Economic System are as under.
Equal Distribution of wealth
Social justice
These objectives can never be
achieved in Interest/Riba based
economic systems.

WHAT IS ISLAMIC BANKING

Now we come to our core

question
Islamic banking has been defined as
banking in consonance with the ethos
and value system of Islam and
governed,
in
addition
to
the
conventional good governance and risk
management rules, by the principles
laid down by Islamic Shariah

DIFFERENCE BETWEEN ISLAIC AND

CONVENTIOANL BANKING

Islamic
Banking

Conventional
Banking

1)Functions
and
1) Functions
operations are
and
based on fully man
operations are made principles

based on
Shariah
principles

DIFFERENCE BETWEEN ISLAIC AND

CONVENTIOANL BANKING

Islamic
Banking

Conventional
Banking

2)
Investor
is
2) Promote riskassured
of
presharing between
determined
rate
of
provider of capital
interest
(investor) and user
of funds
(entrepreneurs)

DIFFERENCE BETWEEN ISLAIC AND

CONVENTIOANL BANKING

Islamic
Banking

Conventional
Banking

3) Aim at
maximising
profit but
subject to
Sharia'h
restrictions

3) Aim at

maximising
profit without
any
restrictions

DIFFERENCE BETWEEN ISLAIC AND

CONVENTIOANL BANKING

Islamic
Banking

Conventional
Banking

4) Partners,
investor and
traders, buyer
or seller
relationship

4) CreditorDebtor
relationship

DIFFERENCE BETWEEN ISLAIC AND

CONVENTIOANL BANKING

Islamic
Banking

Conventional
Banking

5)
Based
on
5) Encourage
money trading.
asset-based
Money is a
financing and medium of
based on
exchange and
commodity
not a
trading
commodity, its

DIFFERENCE BETWEEN ISLAIC AND

CONVENTIOANL BANKING

Islamic
Banking

Conventional
Banking

6)
It
is
almost
6) No right of
risk
free
profit if there is
banking
and
no risk
depositor
has
involved. The
no
risk
of
profit and loss
losing
its
sharing
money because

ISLAMIC BANKING PRODUCTS AND SERVICES

Currently available Islamic Banking

Products and services are
a)Partnership
financing
Musharaka
Finance,

based

modes

Finance,

of

Mudaraba

b) Trade based modes of financing

Murabaha Finance, Salam finance
c)Rental based modes of financing

MAZHAR ALI BOKHARI

Phone Nos. +254 20 2740000 / +92 321
4402900
Email: mazhar.bokhari@hotmail.com
mazhar.bokhari@gulfafricanbank.com