By Ron Anderson

 Middle Ages as early as the 7 th century  Islamic merchants became indispensable middlemen for trading activities  Principles adapted by European financiers

 Sharia (Islamic Law)  Prohibits Riba (usury/interest)  Prohibits dealings in liquor, pork, gambling, weapons, pornography and anything else which is against the Shariah.

 Dealings have to be tied to actual economic activity, like an asset or a service  You cannot make money off of money

 Financing on Profit & Loss Sharing (PLS)  i) Murabaha (Cost-plus sale).  ii) Bay Mu'ajjal (Deferred payment sale).  iii) Bay' Salam (Purchase with deferred delivery).  iv) Bay' Istis'na (Made to order).  v) Ijara (Leasing).  vi) Ju'ala (Loans with a service charge)

 Egypt during 1960s  First commercial bank: Dubai Islamic Bank opened in 1975  Islamic banking manages about $ 500 B or 2% of the world market  10%-15% growth rate

 Advocates claim that islamic lending principles are the answer to the worlds problems