Banking & Accounting Practices in Islamic Countries

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ACKNOWLEDGEMENT

I would like to take this chance for thanking my research facilitator, friends & family for support they provided their belief in me as well as guidance they provided without which I would have never been able to do this research (Creswell, 2005).

DECLARATION

I, (), would like to declare that all contents included in this dissertation proposal stand for my individual work without any aid, & this dissertation proposal has not been submitted for any examination at academic as well as professional level previously. It is also representing my very own views & not essentially which are associated with university (Creswell, 2005).

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ABSTRACT

Islamic banking is one of the most rapidly growing forms of banking in the banking sector all around the world. The Islamic countries all around the world focus upon banking through a particular system that is based on the Islamic values and avoids the concept of riba, commonly known as interest charged on banking services.

The research that is being conducted is going to be focusing on the overall accounting and the banking systems being followed in the Islamic countries all around the world, while specifically focusing on the banking system that is prevailing in the country of Saudi Arabia, which is of the Islamic banking. The study also focuses on highlighting the particular problems that are prevailing in the banking systems using the Islamic banking and the problems particularly faced by the banking system of the Saudi Arabia. Also the research focuses on pointing out the differences in the issues that are faced by the overall banking system prevailing in the Islamic countries all around the world and the ones that are being faced particularly by the banking system of the Saudi Arabia.

The Islamic banking system, unlike the conventional and traditional banking system does not focus on the method of interest based earnings but instead avoid the earnings gained from the interest based banking practices, as the Islamic banking system's major focus is on following the rules of Sharia laws, according to which the interest based earnings even in the banking system are not legitimate earnings and thus need to be avoided at all costs. The Islamic banking thus focuses on the profit and loss sharing practices in the banking system instead of the regular interest based banking practices.

The Islamic banking at first was not that much common as the major banks were not adapting to it but now after a great time since the initial introduction of the Islamic banking practices in the banking, the major banks have also started to adapt to the Islamic banking practices as a separate option of banking as for those who do not want to earn interest on their deposited earnings. The introduction of the Islamic banking by major banks of the banking sector of all around the world, has also contributed towards the commonality of the Islamic banking practices in many countries. The commonality has in turn increased in the adaption of the Islamic banking practices ...