THE GLOBAL ISLAMIC BANKING: EXPANDING THE FRONTIERS OF ISLAMIC FINANCE

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Abstract

Abstract

The growth of Islamic banking is rising in most nations. This paper presents the study of global Islamic Banking with the objectives to explore the insight of Islamic banking concepts and principles, understands the modus operandi of Islamic banking, and finally to evaluate the recent development of Islamic Banking globally across five main continents. A qualitative case study was used for this research to evaluate Islamic banking systems across continents. The data collection method is online research on all expert writing materials, annual reports, academic and industry studies, and related material that can be found online. The material will then be used to construct a literature review, which will be followed by a SWOT and TOWS analysis. The findings conclude that the development of the Islamic banking system is concentrated in the Asian continent, the Gulf countries and also in the Middle East and Southeast Asia. Followed by the continent of Africa and others. The findings of the study also found that there is a gap of knowledge related to the Islamic banking system among customers of banking services. Educating the positive values of Islam and Islamic banking as an alternative to traditional banking and their financial advantages from a religious point of view need to be prioritized by the industry players. There is a need to use technology to provide access to all users of banking services other than existing customers. By utilizing technology, information about the benefits of the Islamic banking system can be organized and marketed to new target customers, hence help to increase the adoption of Islamic Banking by both muslim and non-muslim users.