But what exactly is Islamic Finance?

And why are these Islamic Finance and Halal products gaining acceptance in the Islamic World?

These are Islamic banking and Islamic financial products and Islamic services which comply with Shariah or Islamic law prescriptions. The services cover Islamic Commercial Banking, Islamic Private Banking, Islamic Retailing Banking,Islamic Business Banking, Islamic Corporate Banking, Islamic Contract Finance, Islamic Commerical Real Estate Finance, Halal Mortgage, Muslim Mortgage, Johara banking, Islamic insurance, Islamic Investment Banking, Islamic Fund Management, Islamic Mutual Fund, Islamic Bond, Islamic Leasing and Islamic Project Finance.

Core to the concept of Islamic Finance is its riba-free (interest-free) Islamic Banking system, which offers Halal products and Halal services to its customer irrespective of religious association. Interest by Islamic definition and as applied in Islamic banking and Islamic financial services is a form of usury and is therefore not allow in trade transactions.

This may sound the opposite of conventional banking practices insofar as income generation (interest earnings) is concerned but has proven to be a powerful alternative to anyone seeking or availing of bank facilities and financial services. In a free and fair-market system, this should be a welcome option.

eg. a successful case – Islamic Banking in Malaysia