Starting in the Name of Allah,

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Starting in the Name of Allah, The Most
Beneficent, The Most Merciful
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MAZHAR ALI BOKHARI Head of International
Operations Strategic Planning Division GULF
AFRICAN BANK LIMITED Nairobi, KENYA At AlHuda
CIBE Awareness workshop B.Z University -
Multan Phone Nos. 254 20 2740000 / 92
321 4402900 Email mazhar.bokhari_at_hotmail.com
mazhar.bokhari_at_gulfafricanbank.com
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Honorable Guests, Participants, Ladies
Gentlemen.
Thank you for giving me the honor of presenting
an overview of Islamic Banking
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Importance of Trade in Islam

• Islam has given an immense importance to trade
• The nobility of this profession is obvious from
  the fact that it was the chosen profession of
  prophet Muhammad (PBUH).

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WHY ISLMIC BANKING
Before explaining the concept what is Islamic
Banking the elaboration of concept why Islamic
Banking is very important. Islam is a complete
code of life that provides guidance regarding
each aspect of life.
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WHY ISLAMIC BANKING

• The primary objectives of Islamic Economic System
  are as under.
• Equal Distribution of wealth
• Social justice
• These objectives can never be achieved in
  Interest/Riba based economic systems.

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WHAT IS ISLAMIC BANKING
Now we come to our core question Islamic
banking has been defined as banking in consonance
with the ethos and value system of Islam and
governed, in addition to the conventional good
governance and risk management rules, by the
principles laid down by Islamic Shariah
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DIFFERENCE BETWEEN ISLAIC AND CONVENTIOANL BANKING
Islamic Banking 1) Functions and operations are
based on Shariah principles
Conventional Banking 1)Functions and operations
are based on fully man made principles
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DIFFERENCE BETWEEN ISLAIC AND CONVENTIOANL BANKING
Islamic Banking 2) Promote risk-sharing between
provider of capital (investor) and user of funds
(entrepreneurs)
Conventional Banking 2) Investor is assured of
pre-determined rate of interest
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DIFFERENCE BETWEEN ISLAIC AND CONVENTIOANL BANKING
Islamic Banking 3) Aim at maximising profit but
subject to Sharia'h restrictions
Conventional Banking 3) Aim at maximising profit
without any restrictions
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DIFFERENCE BETWEEN ISLAIC AND CONVENTIOANL BANKING
Islamic Banking 4) Partners, investor and
traders, buyer or seller relationship
Conventional Banking 4) Creditor-Debtor
relationship
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DIFFERENCE BETWEEN ISLAIC AND CONVENTIOANL BANKING
Islamic Banking 5) Encourage asset-based
financing and based on commodity trading
Conventional Banking 5) Based on money trading.
Money is a medium of exchange and not a
commodity, its sale and purchase is prohibited in
Islam.
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DIFFERENCE BETWEEN ISLAIC AND CONVENTIOANL BANKING
Islamic Banking 6) No right of profit if there is
no risk involved. The profit and loss sharing
depositor may lose money in case of loss.
Conventional Banking 6) It is almost risk free
banking and depositor has no risk of losing its
money because interest is guaranteed.
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ISLAMIC BANKING PRODUCTS AND SERVICES

• Currently available Islamic Banking Products and
  services are
• Partnership based modes of financing
• Musharaka Finance, Mudaraba Finance,
• Trade based modes of financing
• Murabaha Finance, Salam finance
• Rental based modes of financing
• Ijarah Finance, Diminishing Musharaka Finance

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THANK YOU

• MAZHAR ALI BOKHARI
• Phone Nos. 254 20 2740000 / 92 321 4402900
• Email mazhar.bokhari_at_hotmail.com
• mazhar.bokhari_at_gulfafricanbank.com