The Key Features of Islamic Banking Business in Dubai Research Paper

The tombstone Features of Islamic Banking Business in Dubai - Research Paper ExampleAmong the two distinct trends of revivalism, modernism show on the religious aspects substantiated by the Sharia and debated the premise that evoke can amount to Riba only if it is perceived as unfair, while neo-revivalism staunchly upheld its notion that interest in any socio-economic class tantamount to Riba and consequently should be abolished. During 1970s neo-revivalists, augmented by the oil-wealth of the conservative Gulf countries (Saeed, 1996, P. 15), were successful in establishing their interpretation that interest is equivalent to Riba. Consequently, Islamic banks were established across the globe with the primary aim of abolishing interest from the banking as nearly as financial systems. The Dubai chapter of Islamic banking has vital significance to the Islamic financial system. Though neo-revivalism had given hoist to semi-Islamic banks in Egypt and Malaysia back in the 1960s, Dub ai came up with the first Islamic bank per se in the form of the Dubai Islamic Bank (DIB), whose operations started simultaneously with that of the Islamic Development Bank (IDB) in 1975 (Shoult, 2006, P. 213). The banking sector as observed in Dubai is a prominent subset of that of the UAE and reflects most of the trends shown by the latter. UAEs banking sector has benefitted immensely from the prodigious economic development and the factors that have contributed to its prosperity are low rates of interest coupled with mettlesome price bands of its most precious natural resource oil. An important feature of UAEs banking sector is that the governing holds huge stakes in it which signifies its enhanced control over the oil based macroeconomy of the Gulf nations (Global investment funds House, 2007, P. 7).