The success of Islamic banking

The first Islamic bank opened in 1975 to mixed reactions; today, an Islamic instutution, the Dubai Islamic Bank, is considered a reputable bank in its region. Islamic banks avoid riba (interest) in following the guidelines set forth in Qur'an. Guaranteed returns on capital investments are contrary to shari`a. The practice of mudaraba (trust financing) contracts and the Dar Al-Maal Al-Islami, the Islamic Investment Company of the Gulf, the Kuwait Finance House, and the Nasser Social Bank are of note. The Jordan Islamic Bank for Finance and Investment is a model of quick growth. Attempts have been made in Pakistan conform to shari`a. Malaysia has planned a Bank Islam, though it is not yet operational. Islamic banking is a formidable force.