Argument shows islamic banking is not only targeting people from muslim backgrounds or in muslim countires

Islamic Banking Is Not For the Muslims Alone Islamic Banking Is Not For the Muslims Alone Islamic banking has been defined as a banking system initially established to utilize funds in accordance with the Sharia principles of the Muslims, whose main purpose is the expansion of the ring of the unity among Muslims. Moreover, it seeks to offer a fair distribution, allocation and application of all funds in line with the Islamic teachings and principles. Therefore, all operations of the system must be in compliance with the Islamic law and principles. Arguments that the system was introduced for the benefit of Muslims and aims the Muslim countries have been refuted by the current trends taking shape around the globe.
As a result of the strict lending rules, Islamic Banking is gaining popularity among Muslims and non-Muslims globally at a high rate. Although referred to as Islamic Banking, non-Muslims have currently been included in the system. Some observers have defined it as a sophisticated banking and finance structure that takes into consideration moral and social values, highly compatible with the modern financial needs, which make the bank, receive overwhelming support from all people. The incorporation of strict sharia economics and the modern lending economics have been the major contributing factors for non-Muslims’ indulgence in the Islamic banking system (Syed, 2012).
Previously, Islamic Banking was attractive only to a limited number of Muslims whose main purpose was to avoid interest charged by the conventional banking system. However, the increased support it has received from the rich Gulf Muslim investors has increased its popularity, luring more people into the system. The rising demand for ethical investing and the need for less risky alternatives of investing have pulled more numbers of non-Muslims into the Islamic Banking. Additionally, the Islamic finance sector is yet to develop into a fully-fledged financial sector. Therefore, more people are required to chip in their little share so as to expand the market share. Driven by the vision of offering an alternative banking system to the conventional banking, designers of the Islamic Banking allowed non-Muslims to take part in order to accelerate its growth (Abdullah, 2012).
The high potential shown by Islamic Banking has seen the introduction of classes based on the ideals of Islamic Banking system (Khan, 2013). In fact some of these institutions have greatly advocated for Islamic Banking to the extent of recommending it among their students. Harvard for example has set up an Islamic Finance Project since 1994 that is based on Islamic Banking. Other constitutions have adopted the studies, with governments full in support of the idea by funding the projects to promote their growth.
Countries have developed robust infrastructure of Islamic Banking and finance system that are in line with the Islamic Banking to boost its development and growth. Luxembourg, Bahrain, and Malaysia are examples of countries that have heavily invested in the Islamic Banking, and have registered numerous benefits from it. Malaysia is a highly Muslim dominated country has the highest numbers of non-Muslim account holders totalling up to 409% of the total account holders in the Muslim Banks. The economic benefits of the Muslim Banking have prompted these countries to seek measures of ensuring that they become lending centres for Islamic banking and finance.
Abdullah (2012) points out that recent trends have shown that while the world has severely been hit by an economic crisis, Islamic Banks kept thriving and showing continuous growth. This put the little known sector on the world map, increasingly pulling in more people, both the Muslims and non-Muslims. The confidence portrayed by the sector has seen more people join the Islamic Banking as it increasingly takes part of the world economy.
Islamic Banking was developed with the aim of promoting Muslim financial growth by instilling Sharia principles in the running of the operations. However, various factors as discussed above have led to the inclusion of non-Muslims in the industry, making it an all rounded industry that includes people from other religious backgrounds.
Abdullah, A. A., Sidek, R. & Azrin, A. A. (2012). Perception of Non-Muslims Customers towards Islamic Banks in Malaysia, International Journal of Business and Social Science, 3 (11).
http://connection. ebscohost. com/c/articles/76474069/perception-non-muslims-customers-towards-islamic-banks-malaysia
Khan, M. (12, May 2013). ‘ Islamic Banking Effective for Non-Muslim Economies’, Daily Times. Retrieved From http://www. dailytimes. com. pk/default. asp? page= 2013%5C05%5C12%5Cstory_12-5-2013_pg5_3
Syed, F. (2012, Mar 30). Islamic banking is not for Muslims alone. Retrieved from http://www. dnaindia. com/analysis/1669157/column-islamic-banking-is-not-for-muslims-alone
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