Islamic banking has grown rapidly over the last decade to become a more than $2 trillion industry globally. It provides several key advantages over conventional banking, including promoting financial justice by sharing profits and losses between lenders and borrowers, increasing financial inclusion for Muslims, reducing investments in industries like alcohol and gambling, strengthening financial stability by taking a more cautious approach, and emphasizing ethical and moral values. As the demand for Islamic banking increases, over 50,000 new professionals will be needed in the industry in the coming years.

1. Academy for International Modern Studies (AIMS), UK. www.aims.education
Islamic Banking & Finance Blog
Academy for International Modern Studies (AIMS), UK

2. Academy for International Modern Studies (AIMS), UK. www.aims.education
Introduction
• Islamic banking, initiated around
40 years ago was first limited to
Middle Eastern countries.
• But over the years, it has become
an effective tool for finance
development worldwide including
non-Muslim countries by becoming
a more than $2 trillion market at
the global level.

3. Academy for International Modern Studies (AIMS), UK. www.aims.education
• We are all aware that the global finance
market is dominated by the conventional
banking system.
• However, due to the advantages of Islamic
banking, the industry has expanded rapidly
over the last decade, growing at the rate of
10 – 12%.
• Many international and local banks have
stepped into the Shariah-compliant financial
industry by establishing Islamic units and
wings in their existing banking system.
Advantages of Islamic Banking

4. Academy for International Modern Studies (AIMS), UK. www.aims.education
Let’s take a Look at the
Five Main Advantages of
Islamic Banking:
Promotes
Financial
Justice
Financial
Inclusion
Reduces the
Impact of
Harmful
Products and
Practices
Strengthens
Financial
Stability
Ethical and
Moral Values

5. Academy for International Modern Studies (AIMS), UK. www.aims.education
Financial justice is the
main principle of the
Islamic model.
Islamic banking creates a
balance for the net profit or
loss between the lender and
the beneficiary rather than
throw it all on the
entrepreneur.
If a project is financed
by the Islamic bank,
the output of the
project will be equally
distributed amongst
both parties.
If the financier is
expecting to receive
profits for a certain
project, he should also
agree to carry a share
of the loss.
1 # Promotes Financial Justice

6. Academy for International Modern Studies (AIMS), UK. www.aims.education
Muslims refrain from banking through the conventional banking system since it is based
on paying/receiving an interest which is strictly prohibited by the Shariah Law.
In fact, almost three-quarter of the world’s Muslims remains unbanked.
Islamic banking removes these barriers and allows Muslims to benefit from the financial
system.
2 # Financial Inclusion

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Irrespective of whether they are legal or not in a given country.
Islamic banking restricts the goods and services that are restricted in Islam such as:
Alcoholic Beverages Tobacco Gambling Pornography, etc.
3 # Reduces the Impact of Harmful Products and
Practices

8. Academy for International Modern Studies (AIMS), UK. www.aims.education
In Islamic finance,
the investments are
approached
cautiously and the
decision-making
process is carried out
thoroughly unlike the
conventional banking
system.
The companies who
appear risky are
usually kept away
from financial
institutes.
This is why during
the global 2008
financial crisis; the
Islamic financial
institutes remained
untouched.
With careful audits
and analysis, the
Islamic finance
institute lessens the
occurrence of risk
and enhances
financial stability.
4 # Strengthens Financial Stability

9. Academy for International Modern Studies (AIMS), UK. www.aims.education
The ethical and moral values
within the Islamic banking system
are one of its salient features.
This plays an important role in
promoting socially desirable
investments and better
individual/corporate relationship as
well as behavior.
5 # Ethical and Moral Values

10. Academy for International Modern Studies (AIMS), UK. www.aims.education
• Islamic banking regardless of the
emphasis on its ethics is a suitable
option for both – Muslims and non-
Muslims.
• The market demands for Islamic
banking are higher than ever and
more than 50,000 professionals will
be required for the industry in the
next five years. You can be one of
them too.
Why Islamic Finance?

11. Academy for International Modern Studies (AIMS), UK. www.aims.education
AIMS Islamic finance institute is
performing a key role is producing
skilled human resources for
Islamic finance professionals, and
professionals study Islamic finance
courses online from all over the
world.

12. Academy for International Modern Studies (AIMS), UK. www.aims.education
To develop your skill in Islamic Banking and Finance,
we recommend you following Islamic Banking and
Finance programs:
Certified Islamic Banker (CIB)
Certified Takaful Professional (CTP)
Certified Islamic Finance Expert (CIFE)
Master Diploma in Islamic Finance (MDIF)
MBA in Islamic Finance
PhD in Islamic Finance
For registration and details
www.aims.education
AIMS