QIIB is an Islamic Bank. And our purpose is to provide a wide range of banking services though do so in accordance with Shariaa law.
The principles of Islamic banking have been around for many years and formed the basis of early trade in Muslim communities. Now, Islamic banking has become an integral part of the global economy and many Shariaa compliant financial institutions have been formed since the 20th century.
Islamic banking is based on the principles of profit and loss sharing, no interest and ethical financial transactions. It is open to Muslims and non-Muslims alike and is widely recognised as a strong and transparent alternative to conventional banking.
What are the main principles of Islamic Banking?
Interest (known as Riba) is forbidden as to make money through the lending of money is prohibited by Shaira law. Money has no value in itself and is simply used to define the value of a good or service in order to facilitate trade.
Islamic banking facilitates mutual business relationships where all parties participate equally through the provision of money, time or skills. All parties share the risk and are therefore entitled to a share of the profits as remuneration. A contract detailing the profit share and other pertinent details should be present at the start of the agreement and be clear enough to avoid uncertainty.
Financial transactions through Islamic banking should follow the moral and ethical values of Muslims and as such avoid all investment into companies involved in gambling, consumables containing alcohol or porcine products or any other goods or services considered contrary to the principles of Islam.
What are the main types of Islamic finance?
Today’s Islamic financing options have been developed by Shariaa scholars in accordance with Shariaa law to meet the modern day needs of individuals and businesses.
There are two basic categories of Islamic financing which provide finance options that are transparent, reduce uncertainty and avoid the creation of debt for the borrower.
For more information on Islamic banking and the Shariaa compliant products and services we have available, please visit your local QIIB Branch or contact our call centre on 4484 0000.