The framework of Islamic banking

The history of Islamic banking can be covered by looking at developments around the Muslim world through a country-by-country description. The movement to establish financial institutions conforming to shari`a began principally through individual efforts that, though not very successful, paved the way for other, more effective efforts. A Federation of Islamic Banks and an international Islamic bank were set up at the Islamic Conference of Foreign Ministers in December, 1970. The Islamic Development Bank began in 1975, the International Association of Islamic Banks in 1977. Islamic financial institutions are of two sorts: commercial banks, and investment and international-holding companies. A look at some accomplishments of Islamic banking shows: the variety of operations they have used; the firms Banker's Equity and the Investment Corporation of Pakistan; and brief accounts of activities in Bahrain, Cyprus, Egypt, Iran, Kuwait, Malaysia, Pakistan, Qatar, Sudan, the United Arab Em