The key feature or principle that distinguishes Islamic banks from any other kind of bank is the rejection of interest-based financial transactions. For many, this system is superior to conventional banking on several counts, chiefly because it leads to more prudent lending by encouraging financiers to invest directly in an entrepreneur’s ventures.

Today, there are more than 200 Islamic financial institutions spread across the Middle East and beyond. They include Banks, Mutual Funds, Mortgage companies, and Insurance companies. The dramatic growth of Islamic finance over the last two decades is one of the most striking phenomena in international banking.