d Finance: Current issues and future prospects held in Washington, DC in September 1986, Islamic Banking Conference held in Geneva in October 1986, and Conference Into the 1990 s with Islamic Banking held in London in 1988 belong to this category. The most recent one is the Workshop on the Elimination of Riba from the Economy held in Islamabad in April 1992. [3] Reference should also be made to some Islamic financial institutions established in countries where Muslims are a minority. There was a proliferation of interest-free savings and loan societies in India during the seventies. The Islamic Banking System (now called Islamic Finance House), established in Luxembourg in 1978, represents the first attempt at Islamic banking in the Western world. There is also an Islamic Bank International of Denmark, in Copenhagen, and the Islamic Investment Company has been set up in Melbourne, Australia.
Currently the world market for Islamic financial services has been growing considerably. The development of Islamic finance in the world and their stability during the global financial crisis, growing demand for Islamic financial products among population, and increasing need for the investments to real sector created favorable conditions for the industry development in Kazakhstan. Now Kazakhstan takes the leading role among the CIS countries and Central Asian region in the development of Islamic finance. One of the necessary conditions for a nation s effective economic development is a vigorous investment policy that pursues development of industries, support of social welfare systems, introduction of new technologies, and promotion of competitiveness. In this regard, one of the priority directions of the Kazakhstan government s economic policy is strong support for investment activities and creation of a favorable investment climate in the country.recent global financial crisis has revealed an acute problem of insufficient liquidity that has impacted the development of investment processes across the world. The inflow of foreign direct investment to Kazakhstan decreased by 20% in 2009. In this connection, Kazakhstan welcomed Islamic financing as an additional source of funding that proved its sustainability during the crisis.
Chapter II. Financial analysis of Islamic bank s activity
Islamic banking has the same purpose as conventional banking except that it operates in accordance with the rules of Shari ah. The basic principle of Islamic banking is the sharing of profit and loss and the prohibition of Riba. The main implication of the Shariah rules is that Islamic banking is restricted to I...
