This year, the awards have taken a more granular approach, in an effort to celebrate innovation across individual sharia-compliant banking activities, while also recognising the best Islamic banks on a regional and global level.
The global Islamic finance sector hit a milestone in 2022, with total sharia-compliant assets growing by 9.4% to pass the $3tn mark, according to S&P Global Ratings. Broadly similar growth is anticipated in 2023/24, thanks to solid growth among Islamic banks in the Gulf Co-operation Council (GCC) and a healthy sukuk market.
The Middle East continues to underpin growth in the global Islamic banking sector, with GCC countries responsible for 92% of the growth in sharia-compliant banking assets for the year, according to S&P. Saudi behemoths Al Rajhi Bank and Saudi National Bank posted strong gains in 2022 on the back of the country’s booming mortgage market and funding for projects linked to the Vision 2030 economic development programme. Yet the year was especially notable for Kuwait Finance House’s acquisition of Bahrain’s Ahli United Bank, which saw the former’s sharia-compliant asset base increase by 70%, making it the third-largest Islamic lender worldwide.
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FAQs
Best Islamic Retail Bank—Al Rajhi BaNK
It takes the award for Best Islamic Retail Bank based on its strong retail performance and innovation and the size of its retail franchise. Al Rajhi is the world's largest Islamic bank globally, with $216 billion in assets and equity of $28 billion.
What is the rule 78 in Islamic banking? ›
The Rule of 78 requires the borrower to pay a greater portion of interest in the earlier part of a loan cycle, which decreases the potential savings for the borrower in paying off their loan.
Which is the best bank for Muslims? ›
Al Rayan Bank helps its customers to own their own homes, save for their families' futures and expand their businesses without compromising their faith or their values.
What are the frequently asked questions about Islamic banking? ›
ISLAMIC FINANCING: FREQUENTLY ASKED QUESTIONS
- Is Islamic banking meant for Muslims only? ...
- What are the differences between Islamic and conventional banking? ...
- What constitutes riba? ...
- Why has Riba been prohibited by Islam? ...
- How do Islamic banks reward their depositors since payment of interest is not allowed?
Saudi Arabia-based Al Rajhi Bank maintained its position as the largest Islamic bank globally, according to the evaluation of the 100 largest Islamic banks and financial holding companies (banks) in the world for the financial year (FY) 2022, with March 2023 cutoff.
Which is the safest Islamic bank? ›
What is not allowed in Islamic banking? ›
In Islamic finance, riba refers to interest charged on loans or deposits. Religious practice forbids riba, even at low interest rates, as both illegal and unethical or usurious. Islamic banking has provided several workarounds to accommodate financial transactions without charging explicit interest.
What are the three main prohibitions in Islamic banking? ›
These three elements were clearly stated in the Holy Quran regarding its prohibition. The prohibition of interest (riba), uncertainty (gharar) and gambling (maysir) that Muslims need to ensure to avoid from implement in any transaction they do.
What are the major prohibited elements in Islamic banking? ›
What are the Five Major Prohibitions?
- Prohibition of Riba (which means interest or usury)
- Prohibition of Gharar (which means excessive uncertainty)
- Prohibition of Maysir and Qimar (which mean games of chances and gambling)
- Prohibition of Jahl (which means ignorance)
- Prohibition of Rishwah (which means corruption)
Islamic banking
J.P. Morgan is dedicated to developing products and services that observe and respect Sharia-compliant ethical principles. Our main goal is to provide Islamic banking solutions to clients with increasingly sophisticated financing needs.
While Muslims are the primary customers of Islamic Finance providers, as these services are created within the boundaries of Islamic Law, there are plenty of reasons for non-Muslims to participate too.
Are there Islamic banks in America? ›
University Islamic Financial (a subsidiary of University Bank) based in Ann Arbor, Mich., serving the large Muslim population of metropolitan Detroit and surrounding states, is the first and only exclusively Sharia-compliant bank in the United States — it offers no other products.
Why do people prefer Islamic banking? ›
Islamic banking do not price money, eliminate interest, share the risk, no excessive penalty, all transactions are assets-based/assets-backed, and most importantly community oriented based on ethical, social and moral.
What is unique about Islamic banking? ›
The most famous rule in Islamic finance is the ban on usury. In economic terms, this means lender and borrowers are forbidden from charging or paying interest or riba. Sharia-compliant banks don't issue interest-based loans.
What are the unique risks in Islamic banking? ›
Islamic banks face two types of risks - risks they have in common with traditional banks as financial intermediaries, such as credit risk, market risk, liquidity risk and operational risk and risks that are unique to them due to their compliance with the shariah such as Shariah non-compliance risk, rate of return risk, ...
Which country has the strongest Islamic financial system? ›
Iran leads the way with 29% of the global total followed by Saudi Arabia (25%), Malaysia (11%), the United Arab Emirates (8%), Kuwait (6%), Qatar (6%), Turkey (2.6%), Bangladesh (2.1%), Indonesia (2%) and Bahrain (1.8%). These countries drive the growth of Islamic finance, set industry standards and foster innovation.
What is the largest Islamic bank in the US? ›
Nowadays, 25 Islamic financial institutions operate in the US area. According to asset size, the top two Islamic Finance institutions are the followings: LARIBA American Islamic Finance House, University Bank (through its subsidiary University Islamic Financial)
Is Dubai Islamic Bank really Islamic? ›
All our financial products and services are regulated by Islamic Banking principles and are periodically reviewed and approved by our Shariah Advisory Board, ensuring investments are made only in Shariah-compliant companies and yearly Shariah audits are carried out as well.
