Starting in the Name of Allah,

The Most Beneficent, The Most Merciful

 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@hotmail.com
mazhar.bokhari@gulfafricanbank.com
Honorable Guests, Participants, Ladies & Gentlemen

Thank you for giving me the honor of

presenting an overview of Islamic
Banking
 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).
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.
 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.
 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
 DIFFERENCE BETWEEN ISLAIC AND
CONVENTIOANL BANKING
Islamic Banking Conventional Banking

1) Functions and 1)Functions and

operations are operations are
based on Shariah based on fully man
made principles
principles
 DIFFERENCE BETWEEN ISLAIC AND
CONVENTIOANL BANKING
Islamic Banking Conventional Banking

2) Promote risk- 2) Investor is

sharing between assured of pre-
provider of capital determined rate of
(investor) and user interest
of funds
(entrepreneurs)
 DIFFERENCE BETWEEN ISLAIC AND
CONVENTIOANL BANKING
Islamic Banking Conventional Banking

3) Aim at 3) Aim at
maximising profit maximising profit
but subject to without any
Sharia'h restrictions
restrictions
 DIFFERENCE BETWEEN ISLAIC AND
CONVENTIOANL BANKING
Islamic Banking Conventional Banking

4) Partners, 4) Creditor-Debtor
investor and relationship
traders, buyer or
seller relationship
 DIFFERENCE BETWEEN ISLAIC AND
CONVENTIOANL BANKING
Islamic Banking Conventional Banking

5) Encourage 5) Based on money

asset-based trading. Money is a
financing and medium of
exchange and not a
based on
commodity, its sale
commodity trading and purchase is
prohibited in Islam.
 DIFFERENCE BETWEEN ISLAIC AND
CONVENTIOANL BANKING
Islamic Banking Conventional Banking

6) No right of profit 6) It is almost risk

if there is no risk free banking and
involved. The profit depositor has no
and loss sharing risk of losing its
depositor may lose money because
money in case of interest is
loss. guaranteed.
ISLAMIC BANKING PRODUCTS AND SERVICES

Currently available Islamic Banking Products and

services are
a) Partnership based modes of financing
Musharaka Finance, Mudaraba Finance,
b) Trade based modes of financing
Murabaha Finance, Salam finance
c) Rental based modes of financing
Ijarah Finance, Diminishing Musharaka Finance
 MAZHAR ALI BOKHARI

Phone Nos. +254 20 2740000 / +92 321 4402900

Email: mazhar.bokhari@hotmail.com
mazhar.bokhari@gulfafricanbank.com