Simply put, Islamic banking is banking that conforms to Shariah law. Islamic law prohibits charging interest as well as any usury i. Therefore, interest cannot be charged on loans, nor can it be paid on mkney. Typically Westerners who work in the Middle East deposit their salary into a local bank, but transfer any money they want to save and earn interest on to an offshore account. To Western understanding, the idea of a bank that ths charge interest is rather shocking — though a bank that doesn’t pay interest probably shocks few people these days! But Islamic banks are still banks, which means they also seek to make profits for their investors. It’s just done differently. As explained moey the Institute of Islamic Banking and Insurancehow banks in the middle east make money Islamic financial system employs the concept of participation in the enterprise, utilizing the funds at risk on a profit-and-loss-sharing basis. Rather than a Western-style loan where a person gets money...