Privatization and role of Islamic banks

This article examines the process of privatization in Islamic countries. It studies the benefits privatization holds for the countries and their people and also the role of Islamic banks in the privatization process. More and more nations are understanding the benefits of private enterprise. It realizes liquid financial assets and also enables optimum utilization of resources. Privatization not only holds the great promise of attracting foreign capital and technology but also the return of home funds and entrepreneurs. Countries are seen to deregulate economy to attract investments and develop capital market. Middle Eastern countries, particularly the GCC countries, have embarked on massive privatization programs. There are some arguments against privatization and its effect on the weaker sections of the society. For such a creation of wealth, a conductive atmosphere can be provided by prudent government policies encouraging private enterprise. Islamic banks also have a major role to