Ch. 1 Introduction
This section gives a brief foundation of Islamic managing an account in the World and in addition in the UK about its framework and practice. The Islamic monetary law has long history yet Islamic keeping money and account industry appeared with Profit and Loss Sharing venture by
Egypt’s Mit Ghamr Saving Banks in 1963. After authority presence Islamic keeping money has developed in the territory of account, saving money, protection, home loan, and resources administration business with yearly development rate of 10-15 %. In any case, real advancement in Islamic saving money is begun after 1970 with new venture methods, methodologies and item improvement (Steward, 2008). Dubai Islamic Bank (DIB) is known as world first Islamic bank it was framed in 1975.
At present it has 48 branches which incredible administrations. DIB offers higher returns than routine keeping money framework also they give auto, home and individual fund items, (Platt, 2008). Islamic saving money is a moderately minimal known in the West, and more noteworthy enthusiasm for loathing. The possibility of “Islamic Banking”, however contains considerably more than the forbiddance of premium. Islamic saving money demonstrates that morals and fund can be associated with serve the general public. The thought is to wipe out the saving money arrangement of unfairness in the general public. A reasonable connection with the religion of Islam can prompt doubt among the nationals in the West, maybe out of apprehension of the obscure. Today’s worldwide society in the Arab world and the Islamic keeping money framework is nearer to us and must be dealt with. In the event that the Islamic bank and its moral qualities surprisingly it will be perfect world, the monetary on-screen characters on the planet. States of mind are changing, however gradually, and as of late, the estimation of the conventional managing an account framework, which has started to look nonpartisan, the still, small voice of a developing number of individuals. Creator would prefer not to assets, banks and budgetary establishments, discharges to organizations which contribute morally and socially destructive act. The point of this study is the subject of “Islamic managing an account critical to clear up and clarify some of their connections to governmental issues, history and religion. Islamic fund is on Islamic law Sha’riah that offers every one of the arrangements and financial issues of the establishment. Under Islamic law, intrigue totally taboo in Islam, in light of the fact that the loan fees extremely negative effect on society, for example, the capacity, acquiring power and expanding neediness, uneven conveyance of the credit emergency and the economy. As indicated by Usmani (2005) the principle downside in premium based framework is lender has no worry with cash when he gives an enthusiasm bearing advance to a customer. Be that as it may, in Islamic monetary contract cold hard cash is not given to customer, above all else they buy the ware and exchange to customer then all benefit and misfortune will be disseminated between gatherings as indicated by concurred terms and conditions (Usmani, 2005). I’s assertions that interest in Islamic money related framework is useful for the economy, since the genuine disappointment and the harmony, and it is useful to enhance the economy and society. Monetary Law of Islam, there are a few assets strategies, for example, Musharaka, Murabaha, Ijarah mudaraba and every one of the points of interest of the instance of the arrangement, and a few understandings set up frameworks for sharing benefits and misfortunes. Islamic budgetary framework depends on the sharing of dangers between the gatherings and the weight is not so much reliable with the Parties. Islamic fund is not just the Muslim people group since they are the good and moral way to deal with money and speculation. Islamic money is likewise well known in all groups in the United Kingdom. Islamic money has various difficulties in the UK in light of the fact that the monetary framework is appealing to the customary managing an account framework, however the Islamic keeping money has incredible potential in the United Kingdom since it has less to five years in an Islamic bank did a critical part in the British budgetary markets .
Ch. 2 The Problem
According to the figures of Office for National Statistics 2001, there was 2.2 million (3.4%)
Muslims living in the United Kingdom (National Statistics, 2010), but according to Home Secretary the Muslim population is increasing with high growth rate. In just seven years there is an increase of 40,000 Muslims in the UK and figures reached on more than 2 million which consist of 3.3% of total UK population (Guardian, 2010)
There was no way available to the Muslims in the United Kingdom before 2000, but the Muslim population would spend their lives for their faith. Depending on the interest of Islamic education in Islam is strictly forbidden, and they want banking services such as savings accounts, checking accounts, mortgages, insurance and loans, backed by the Islamic law Sha “Riah. The United Kingdom is a non-Muslim and all of its financial rules and rules for the traditional banking system. While the Muslim community has an active role in the economy, there was no need for a system that can start to accept these people. Islamic banking began in England in 2003, so that the Financial Services Authority. By 2003-2009, there is sufficient improvement and development of Islamic banking. There are currently two main part of traditional banks and Islamic banks, Islamic banking in its entirety. But the growing Islamic banking and start-up phase, and the Islamic bank is is a number of challenges in western society as a socially, economically, and the contract terms. Instead of all the Islamic Bank now traditional banks also offer Islamic banking services with traditional banks such as HSBC Amanah offers the author’s name is his own account in the name Lloyds TSB Islamic current account.
Ch. 3 Aims and Objectives
The United Kingdom is a non-Islamic country, the financial and banking rules most of the traditional banking system, because it is an Islamic bank is facing difficulties in the way of his progress. In other words, these problems, big challenges in the Islamic banking business, if they work hard to develop the Islamic banking in a short time. The study aims to identify opportunities for development and growth of Islamic banking in the United Kingdom and who are the biggest problems currently facing from the Islamic banking in the world in general and the United Kingdom in particular. I have divided the investigation of issues in three different areas, know that the banks and the Islamic banking sector, because is difficult without a basic understanding of information, develop the financial system, whether the opportunity for growth and development in the UK and what are the Challenges for Islamic Banking.
This area will cover the basic and fundamentals of Islamic banking. It shows if the community and banks have better understanding about Islamic finance and its exercise then it will play important role for development of Islamic banking in the UK.
* How important is to know the fundamentals of Islamic banking for Muslim Community and services providers?
* Do Muslim community really believe and understand the difference of Islamic and conventional banking? What are the factors that make Islamic banking prior to conventional banking to Muslim community?
* How important is Sha’riah law and its practice for Islamic finance and the role of Islamic scholars in promoting Islamic banking services and its products?
The main research objectives of this project to be addressed are as follow:
- Is Islamic banking sector has a potential for product development? Whether Islamic banking is in position to satisfy its customers?
- Is Islamic banking has a potential to perform active role in the UK Financial Market and its growth in market development?
- Do Islamic banking able to enhance the investment opportunities in the UK and whether it can play prominent role for the UK economy?
- Is there any affect of the UK environment (political, social and geographical) for growth and development of Islamic banking?
- Is Islamic banking has proper regulatory and institutional framework in the UK?
- Whether Islamic banking has any problem in the UK in respect of supervision and scholarly committee?
- Is Islamic banking full informative to its customers or facing any difficulty in its marketing sector?
- Is Islamic banking in position to survive and develop in the age of competition and globalization?