Islamic banking: theory and practice in Iran

Iran is unique in that it is the only country that has completely transformed its banking system into an Islamic one. In total, there are 45 countries in which Islamic banking is practiced to some degree, and the outside world is now keenly interested in the practices of Islamic finance for good reason. First, foreign companies that operate in Muslim lands may need to change the way they function in those territories. Second, the possibility of free foreign exchange and the international compatibility of this exchange are profoundly affected by Islamisation. Third, interfacing between Islamic and conventional banks will have to be investigated to see what can and what cannot be done. Fourth, financing international debt in a world of Islamic economics would be a deeply changed matter. Thus, the rise of Islamic finance is something to take note of because it comes with a number of potentially serious consequences.