Contents

• Abstract 2
• Acknowledgements 3
• List of Tables 6
• 1. INTRODUCTION 7
• 2. AIMS AND OBJECTIVES 8
• 3. APPROACHES TO APPRAISAL 9
• a) Background 9
• b) Literature Review 9
• Islamic Banking Growth and History 9
• Current Sharia Approved Modes of Finance 12
• Current Practices of Islamic Banking 13
• Business Ethics in Islam 14
• Comparing Islamic & Conventional bank 15
• 4. THE STUDY (METHODOLOGY) 16
• a) The Organisation 16
• b) The Sample 16
• c) Methods 17
• 5. RESEARCH FINDINGS 18
• a) Presentation and Analysis 18
• b) Interpretations 18
• 6. CONCLUSIONS 26
• 7. RECOMMENDATIONS 28
• 8. REFERENCES 29
• 9. APPENDICES 31
• Appendix I – List of current standards 31
• Sharia’s Standards 31
• Accounting statement and standards 33
• Auditing standards 33
• Governance standards 34
• Ethics standards 34
• Appendix II- Number of Depostors and including their average deposits in Mit-Ghamr Islamic Saving banks 35
• Appendix III- Regional and Global Growth Totals of Islamic Banks 36
• Appendix IV- Top 15 Countries by Sharia-Compliant assets 37
• Appendix V- Top twenty Institutions by Sharia 38

Description

In this paper, we undertake a study on the Islamic banks and financing investment in the Islamic Banking industry in Oman because the Law of Islam does not allow charging of interest. The bulk of the evidence we obtain both from the survey using questionnaires and from the secondary literature show that the Islamic banks financial operations are not consistent with the profit-loss sharing as is the case with conventional financial institutions. In order to analyse these facts, we construct three different types of questionnaires to gain insights of Islamic banks and financing investments in Omani financial institutions. Based on the findings, the paper has concluded and recommended on the way forward about the Islamic Banking industry with strong emphasis on the need to create a strong campaigns of awareness through education and other means all over the world and particularly in the Muslim nations so that they are able informed about the financial services and products offered in the conventional financial institutions and those that are offered by the Islam banks.