Islamic Banking

BDO Islamic Financial Advisory (IFA) was established to serve as a capacity builder & solution provider for the Islamic Financial Service Industry. We will be the industry leading experts with a strong presence through our strategic alliances with GCC & Middle East offices & an international reach through BDO’s Global Network. Our office is located in the Middle East, with English and Arabic speaking partners and advisors working closely with BDO experts across the world.

Islamic banking refers to a system of banking or banking activity that is consistent with the principles of Islamic law (Sharia) and its practical application through the development of Islamic economics. Sharia prohibits the payment or acceptance of interest fees for the lending and accepting of money respectively, (Riba, usury) for specific terms, as well as investing in businesses that provide goods or services considered contrary to its principles (Haraam, forbidden). While these principles were used as the basis for a flourishing economy in earlier times, it is only in the late 20th century that a number of Islamic banks were formed to apply these principles to private or semi-private commercial institutions within the Muslim community.