In search of an identity

Fixing the value of Islamic banks in the Gulf simply cannot be done, due to a lack of reliable data and information. Furthermore, due to disagreements as to what is Islamic, there are numerous ways of figuring the total assets of Islamic banks depending on what banks one feels should be included in the count. Some Islamic institutions in the Gulf are Kuwait Finance House, Dubai Islamic Bank, The International Investor, and Faysal Islamic Bank of Bahrain--a member of the Dar al-Maal al-Islami group. Among their practices are istisna (working capital arrangements), ijara (leasing and hire-purchase), and murabaha (cost-plus financing). In terms of assets, Al Rajhi is the largest Islamic bank--but it is not much of a force on the international scene. The Arab Banking Corporation has established Islamic clearing accounts and intends to start an independent Islamic bank in the near future.