Islamic Banking Knowledge

Dahabshil Bank International (DBI) is a fully-fledged Sharia compliant bank licensed by the Central Bank of Somalia and Somaliland. Incepted in 2012, our primary markets are in East Africa, Gulf Region, Western Europe and North America. We combine world-class customer service, the highest ethical standards of Sharia and the latest technology, to bring cost-effective products and services to our customer. DBI is all about accountability, integrity and profitability.

There are also over 500 financial institutions offering Islamic Finance in over 80 different countries, these range from retails banks to investment banks and asset managers. A recent estimate puts the Islamic Finance industry $1 trillion worth of assets and predicts that it will grow at between 10-15 per cent per annum. Lloyds TSB offers a current account together with a home-financing scheme. The Islamic Bank of Britain offers a Sharia compliant current account, mortgage and also a personal loan. HSBC offers a Islamic current account and mortgage.. A handful of other banks also offer financial products in the UK tailored for Muslims and all around the globe.

Both Muslims and non-Muslims can benefit from Islamic Finance as, by principle, it aims to be a more transparent and fairer system of finance. Many of the instruments or investment methods that have contributed to the financial crisis are not permitted by Sharia, such as short selling or non-asset backed derivatives. DBI makes the point that there is no difference between how an individual or business would approach identifying an Islamic Bank or financial institution compared to a conventional one. Individuals should check that the Islamic Bank is authorized and regulated by the FSA to ensure they receive the same protection as they would with a conventional bank. It is important that individuals and business ask what benefits and terms they would receive and ensure that they select their provider on how they can meet these.

Although they cannot charge interest, the banks can profit from helping customers to purchase a property using a ijara or murabaha scheme. With an ijara scheme the bank makes money by charging the customer rent; with a murabaha scheme, a price is agreed at the outset which is more than the market value. This profit is deemed to be a reward for the risk that is assumed by the bank.