Ahmed Debes University of Plymouth Business School
Mohamed El Baradie Hamdan Bin Mohamed Smart University
This paper discusses Conventional and Islamic banking systems and shows that, even though they share the same basics and the same goals, they depart from each other at the ethical sources and the application phases. It starts by defining both systems and describing their general stances. It describes some of the procedures carried out in both Islamic based and conventional/commercial banks.Next, the paper illustrates the origins and principles of Islamic Finance, and subsequently, the development of modern Islamic banking. In the following section, the Islamic banking movement worldwide is discussed followed by a brief comparison between the Islamic banking models in the gulf region (as one of the main parts of the world applying Islamic Banking) and its counterpart outside of the gulf region. At the end of the paper, Islamic and commercial finance (mainly insurance) outside the banking arena is touched upon.
Islamic Banking, Islamic Economics, Islamic Finance, Banking in the Gulf Area