Also, the sector is developing beyond the Gulf Cooperation Council. Though it will take time for the Islamic finance industry to grow to a significant size in the non-Gulf Arab states, a successful pattern has been created by the Gulf States and by the banking sector in Malaysia. The challenge now is to lay the regulatory foundations so that service offerings can grow. The banks have made small successes, such as protecting clients and remaining stable. There is more to come. The theme is that interest in Islamic banks and finance is quickly on the rise and that it will make inroads quickly.
Islamic banking can be traced as far back as the time of the Prophet Mohammed, perhaps even the beginnings of Islam. Having existed mainly as a currency exchange and services, Islamic banking evolved over time and was brought into an official banking system in the year 1963, through a commercial savings bank in Egypt.
According to Malaysia-based financial services firm CIMB Group Holdings; Islamic finance is on the move and has been noted as the "fastest-growing segment of the global financial system". In addition, it has been stated that sales of Islamic bonds may rise by as much as 24 percent to $25 billion in the year 2010. Products are being developed and enhanced to attract new customers and enhance the experience for existing ones. In addition, the level of service quality also relates to products. Attempts to understand and clarify the extent of the similarities and relationships that may exist between the quality of services and its many dimensions, Islamic banking variables between these and the independent depend on each other.
Variables of Islamic banking may include returns on investment accounts, services and their compliance with Shari'ah laws, the compliance of financing with Shari'ah, to offer competitive service fees to customers, a market competitive finance rate. It is important to also note that the basics-such as the availability and accessibility of banking services, of profit-sharing finance, employee awareness of Islamic banking services and products, as well as the trustworthiness of Shari'ah boards are components to be considered. Product offerings are typically carefully examined.
A good presentation has been made regarding the level of customer awareness and familiarity with Islamic bank products and services. This has shown that a significant effect on customer perceptions of the service quality offered by Islamic banks. The basic results exhibited that service reliability; certain tangibles as well as Shari'ah compliance guarantees appear to be the most significant issues that can (and often do) influence client perceptions and feelings. The study has also proved that providing high quality banking services and products can result in a high profitability margin, customer loyalty, and steady growth of the business.
Islamic ways and conditions are against all abuse and all advantages taken of the customer, done by the conventional banking systems. It also helps other countries being under control of the economical huge countries that always impose their financial systems on the whole world. This is a sort freeing the worldwide systems and countries from the monopole.
Methods of Islamic Financing and its impact on financial markets, Dr. Kayssar Abdel Karim el Haity-Reslan publishers-book page 301).
The author's results also show that competence in human resource (people) management, a distribution of liquidity, developing tools to help manage cash/accounts, and diversifying the financial and investments portfolios will further assist Islamic banks to sustain the market they eventually aim to occupy and possibly even dominate.
Title: An Empirical Study of Islamic Banks in the UAE
Authors: Obaid Saif H.A. Al Zaabi & Rodney Wilson
Source: Journal of Social Affairs, 2006
Islamic banking systems and products across the globe have played a huge role in the financing ways and structures. It has offered services to a very wide variety of businesses especially in the economical and social environments, and this by the distribution of its investments between different institutions and organizations.
Dr.El-Shamary believed that the Islamic banking and financing system registered a significant success in the environments of all types of business activities, due to a good presentation of the quality of products that are offered by Islamic banks, in order to reply to the needs of individual and businesse clients, Dr.El-Shamary (pp.249) stated that "The existence of Islamic banking systems and products all around the world has played a huge role in the financing ways and structures. It has offered services to a very wide variety of businesses especially in the economical and social environments, and this by the distribution of its investments between different institutions and organizations."
Title: Basics of Islamic Finance
Author: Dr. Sadek Rashed El-Shamry
Source: Pg. 249 (in book)
In April of 2010 a joint venture announcement which was led by Doha-based Qatar Islamic Bank (QIB), revealed the potential new banking products for Islamic banking clients in Europe. QIB stated it is seeking to become the leader for companies selling Shariah-based retail banking products in France. According to Salah Mohamed al-Jaidah, the bank's chief executive officer (CEO) who made the announcement on Thursday April 15, 2010, the bank has partnered with France's second largest banking group, BPCE, and signed a memorandum of understanding (MOU) to launch a new financial house that will create, enhance, develop, and market Shariah-based retail consumer banking products across France. Essentially, new products and new tools will be created to serve the growing Muslim population in the European nation.
Title: Islamic Banking Products To Be Made Available in France
Author: Online article (published April 2010 by magazine on it's website)
Source: Global Islamic Finance Magazine, April 2010 issue (online)
