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Starting in the Name of Allah

,
The Most Beneficent, The Most Merciful

Z University .com mazhar.bokhari@hotmail.com .Multan Phone Nos.bokhari@gulfafricanbank. +254 20 2740000 / +92 321 4402900 Email: mazhar. MAZHAR ALI BOKHARI Head of International Operations & Strategic Planning Division GULF AFRICAN BANK LIMITED Nairobi. KENYA At AlHuda CIBE Awareness workshop B.

Participants. Ladies & Gentlem Thank you for giving me the honor of presenting an overview of Islamic Banking .Honorable Guests.

.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).

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

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. .

by the principles laid down by Islamic Sharia’h” . in addition to the conventional good governance and risk management rules. 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.

DIFFERENCE BETWEEN ISLAIC AND CONVENTIOANL BANKING Islamic Conventional Banking Banking 1) Functions 1)Functions and operations are and based on fully man operations are made principles based on Sharia’h principles .

DIFFERENCE BETWEEN ISLAIC AND CONVENTIOANL BANKING Islamic Conventional Banking Banking 2) Promote risk. 2) Investor is sharing between assured of pre- provider of capital determined rate of (investor) and user interest of funds (entrepreneurs) .

DIFFERENCE BETWEEN ISLAIC AND CONVENTIOANL BANKING Islamic Conventional Banking Banking 3) Aim at 3) Aim at maximising maximising profit but profit without subject to any Sharia'h restrictions restrictions .

4) Creditor- Debtor investor and relationship traders. DIFFERENCE BETWEEN ISLAIC AND CONVENTIOANL BANKING Islamic Conventional Banking Banking 4) Partners. buyer or seller relationship .

DIFFERENCE BETWEEN ISLAIC AND CONVENTIOANL BANKING Islamic Conventional Banking Banking 5) Encourage 5) Based on money trading. its . asset-based Money is a financing and medium of based on exchange and commodity not a trading commodity.

The depositor has profit and loss no risk of sharing losing its money because . DIFFERENCE BETWEEN ISLAIC AND CONVENTIOANL BANKING Islamic Conventional Banking Banking 6) No right of 6) It is almost profit if there is risk free no risk banking and involved.

Mudaraba Finance.ISLAMIC BANKING PRODUCTS AND SERVICES Currently available Islamic Banking Products and services are a)Partnership based modes of financing Musharaka Finance. b) Trade based modes of financing Murabaha Finance. Salam finance c)Rental based modes of financing .

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