Growing trend of Islamic banking in world wide

Abstract

The global Islamic Banking industry has undertaken major transformations in the last few years in its mission as boost international competitiveness and to provide a sustainably profitable business model. There are more than 170 Islamic Banks operating around the world now and more than 500 Islamic Financial services institutions worldwide. This robust growth is expected to continue for the future. Currently in many markets, Islamic Banking has evolved from being a niche offering into being part of the mainstream financial services landscape. At the same time, the competitive condition is being continued, with more Islamic financial services institutions in the marketplace than ever before. The banks, which are currently operating and new market entrants are facing completely different market conditions and need to develop new foundations for differentiation beyond compliance with sharia (Islamic law) to compete or remain successful in the future. Most of the Islamic Banks are operating within the Middle-East countries; meanwhile universal banks in developed countries have begun to tap the massive demand of Islamic financial products. This paper seeks to analyze the growing trend of Islamic banking around the world with the information of some specific countries.