Islamic banking and its impact on international finance scene

The first modern Islamic banking setups were Pakistani credit unions established in the 1950s. In 1963 a small bank began in rural Egypt; in 1971 this bank became part of the Nasser Social Bank. The increase in oil wealth of Muslim nations helped fuel the drive for Islamic financial institutions. Prince Mohammed bin Faisal founded the Faisal Islamic Banks. Islamic banking is today practiced in Malaysia and Indonesia. A number of European banks offer Islamic products. Pakistan and Iran have completely Islamized their financial sectors. Islamic banking is here to stay. The participatory approach to finance that Islamic banks use particularly benefits small ventures. Although there are $50 billion in assets in the Islamic banking field, this is still less than 1% of the world total. No international markets exist for Islamic financial products, for major multinational banks have not sponsored or accepted them. Islamic insurance represents only a small part of the insurance mar