ISLAMIC FINANCE IN SOUTH AFRICA – PART 1

Thursday, September 20, 2012
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Islamic finance has its roots in the texts of the Quran and Sunnah (conduct, sayings and approvals of Prophet Muhammad (may God’s peace and blessings be upon him), as implemented in the trading practices of the first Muslim community established and led by Prophet Muhammad (pbuh) more than 1400 years ago. The institutionalisation of Islamic finance can generally be traced back to 1963 in the Egyptian town of Mit Ghamir, where one Ahmad Elnaggar started a savings bank based on profit-sharing. Islamic banking has since then expanded rapidly throughout the world, and it is estimated that there are about 500 financial institutions operating in more than 75 countries that offer Islamic banking and financial services, with the global size of the Islamic financial services industry being in the region of USD1.1 trillion.

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