Islamic Banking, enlightened with the guidance of Islamic Sharia principles, emerged as an alternate financial system that neither gave nor took interest, thereby introducing a fair system of social justice and equality, while satisfying the financial needs of people and retaining high standards of ethics, transparency and a sense of responsibility.
The main sources of Islamic sharia (law) are the principles and teachings of Holy Quran and the practices and teachings (Sunna & Hadith) of Holy Prophet Mohammed (PBUH).
Islamic banking is a fast growing phenomenon in the global financial markets. There has always been a demand among Muslims for financial products and services that conform to the Sharia (Islamic law). Based on this demand, a number of banks all over the world have started offering products and services that are in compliance with Sharia.
Rather than choosing for interest as a way of generating wealth, Islamic banking is unique in the way that it supports individuals as well as businesses build tangible and appreciating assets for themselves. This not only leads to prosperity founded on a solid economic base, but also inspires the spirit of entrepreneurship amongst its customers. Islamic banks are based on the unique concept of profit and loss sharing with the customers by way of various Sharia-compliant financing and investment implements.
The main difference between Islamic and conventional is that Islamic banks prohibit interest. Unlike conventional banks, Islamic banks disallow lending money to money but rather promote trade (buy and sell) transactions and partnerships. In Islamic banking, wealth can be generated through legitimate trade and investment. Any gain related to this trading is shared between the person providing the capital and the person providing the expertise.
Al Masraf is a customer-driven financial institution and the reason we provide Islamic products is to serve a genuine financial need amongst our clients. This is again demand driven and a full spectrum of products will be offered to our valued clients.