Learn the most prominent Islamic banks in Europe and America economy

Islamic financing has emerged as an effective tool for financing development around the world, including non -Islamic countries in Europe and America, and major financial markets discover evidence that this type of financing has become an important part of the global financial system, and that it enjoys the ability to help address the challenges of eliminating extreme poverty and promoting common prosperity according to the World Bank.

Islamic financing is a financing based on Islamic, moral, sustainable, environmental and social official, and it enhances risk sharing, links the financial sector to the real economy, emphasizes financial inclusion and social luxury, according to the World Bank.

The size of Islamic financing

The volume of Islamic finance industry in 2024 is estimated at about $ 3.9 trillion distributed over more than 80 countries in the world, amid expectations that the global Islamic finance market will reach $ 4.9 trillion in 2025.

It is also expected that the total value of the assets of the global Islamic financing markets will reach 6.67 trillion dollars by 2027, according to the Statista platform.

The West towards Islamic banks

In 2008, millions of people in America and Europe lost their homes due to the global financial crisis at that time, and lost billions of dollars in the sudden collapse of the markets in 2010.

The entire European countries face a stifling and unprecedented debt crisis, and it was not surprising that you see the demonstrators occupy (Wall Street) carrying banners saying “Let’s deal with Islamic banks.”

These manifestations reflect what people in Western countries feel towards the system of traditional banking banks, according to the Islamic Real Estate Finance House platform in Australia, which is the largest Islamic finance institution in Australia.

Western countries are witnessing unprecedented growth of banking services and Islamic finance, according to a study under the title: “Analysis of Islamic Banks and Finance in the West: from backwardness to leadership” published by the “Research Gate” platform.

https://www.youtube.com/watch?v=dum74r_0zdy

Islamic financing in Europe and America

In the aftermath of the 2008 crisis, Islamic financing appeared as a safe alternative to the Western banking system based on usurious benefits, and Islamic Sukuk looked a good way to enter new markets, and Islamic funds represented opportunities to reach large quantities of liquidity, and Islamic banking services were a way to earn money from local Muslim societies.

Below is a brief summary of the most important Islamic financing centers in Europe, according to the magazine “Global Finance” and the “Engly Conduct” platform.

Britain is the Islamic Finance Center in Europe

Britain has one of the most advanced Islamic financial markets in the Western world, and it rapidly turns into a major destination for foreign institutions compatible with Islamic law.

The country is home to the first retail bank in line with the entire Islamic law in the West, and London has succeeded in establishing its position as a center for financing compatible with Islamic law in the Western world.

Britain is proud of 5 licensed Islamic banks, and more than 20 traditional banks offer Islamic financial products.

Other European countries in which Islamic financing achieved remarkable success include:

• Luxembourg
  The first country in the eurozone to issue an Islamic sovereign bonds, and there are about 30 funds compatible with Islamic law.
• Germany
  It was the first Western country to use the Islamic Capital Market when Saxony issued the country’s first Islamic bonds in 2004, and it was granted a license to the first complete Islamic bank “KT Bank Ag” in 2015.
• France
  France includes the largest number of Muslim population in Europe, and it is also a promising market, and the French authorities have made – former French Finance Minister and the Director of the International Monetary Fund Christine Lagarde – with unremitting efforts to develop Islamic financing there, and some French investment banks provide products and services compatible with Islamic law to meet the needs of wealthy foreign customers.
• Russia
  Russia has begun to provide Islamic financing products through financial technology companies such as “Payzakat” or traditional banks.

The idea is to meet the needs of its Muslim residents and help its banks expand the Middle East and North Africa markets.

https://www.youtube.com/watch?v=92frb-h28Q0

The 4 largest European Islamic banks

Below is a list of the 4 largest Islamic banks in Europe, according to the “Engelosev Moni” platform:

1. Kt Bank Ag
   The first bank in Germany and the eurozone provides comprehensive financial products and services in accordance with the principles of Islamic banking services. It was established in 2004, and its headquarters are located in Frankfurt, and has branches in Berlin, Frankfurt, Manheim, Colonia and Munich.
2. Al Rayan Bank (Al Rayan Bank)
   It was established in 2004, the oldest and largest Islamic bank in Britain, and serves more than 85,000 customers throughout the United Kingdom, and the bank provides savings, financing and current accounts in compliance with Islamic law.
3. London Bank and Middle East (BLME)
   In August 2006, House of London and the Middle East (HLME) was established as a British company by Boubyan Bank. In July 2007, the company obtained a bank license from the UK Financial Services Authority and became “London Bank and the Middle East” (BLME). This bank was launched with the aim of linking the UK and Middle East markets through Islamic finance.
4. Gatehouse Bank
   A bank compatible with Islamic law, provides savings and financing products for commercial and residential real estate in the United Kingdom, and provides and advice on real estate investments in the country with a focus on the construction sector for rent.

Islamic financing in America

There are a few, but it is increasing, from banking institutions that provide official Islamic financing products in the United States. Some banks allocate loan products to Muslim clients as needed, but they do not provide an official Islamic financial product and record these transactions as traditional loans.

Before 1997, no bank or banking branch in the United States provided official Islamic funding that was publicly approved by an American organizational body and was approved by a council of Muslim scholars, known as the Sharia Council.

Currently, there are 9 institutions that announce the products of financing the official Islamic assets in the United States, according to the “Federal Reserve in Chicago”, which are:

1. Lariba Finance House.
2. Guidance Financial Group.
3. Devon Bank.
4. University Bank.
5. HSBC.
6. NeighBorhood Development Center.
7. World Relief.
8. Shape Financial Group.
9. Reba Free.

Principles of Islamic financing

This demand calls for a question about the principles of Islamic financing that make even non -Muslims desire, and they claim to be applied in their countries. Islamic financing represents a financial activity that corresponds to the principles of Islamic Sharia.

The principles of Islamic financing can be summarized by the following ten points, according to the consultant Almeir Kulan, who specializes in Islamic capital markets at the Faculty of Economics and Finance at the Australian University of LaRub in a lecture at the University of Melbourne:

1. Compliance with Islamic lawIslamic financing must be compatible with the principles of Islamic Sharia, which prohibits immoral activities such as usury (interest), facilitator (gambling), and vanity (uncertainty).
2. The prohibition of usuryIslamic financing prohibits dealing with interest (usury) in all financial transactions, as usury is an exploitation and unjust to the weakest party.
3. Encouraging halal trade and investmentIslamic financing encourages commercial and investment activities that depend on participating in profit and loss, rather than relying on fixed benefit, and this includes contracts such as Murabaha, rent and participation.
4. Risk sharingOne of the basic principles of Islamic finance is to share risks between the contracting parties. In Islamic contracts, each party must bear part of the risks associated with investment or project.
5. Connecting to the real economyIslamic financing focuses on financing real assets and concrete economic activities, instead of financing based on speculation or paper transactions that are not related to real assets.
6. Justice and transparencyAll financial transactions must be fair and transparent, while avoiding any form of fraud or deception that may lead to the exploitation of one of the parties.
7. Social responsibilityIslamic financing aims to achieve social justice and moral responsibility, as it encourages the distribution of wealth fairly and supporting the needy groups through zakat and alms.
8. The prohibition of speculation and gamblingIslamic financing prohibits any form of speculation or gambling that depends on luck or excessive uncertainty.
9. Focus on Islamic morals and valuesIslamic financing is not limited to compliance with jurisprudence rules, but also to enhance Islamic moral values ​​such as honesty, honesty and justice.
10. sustainable developmentIslamic financing seeks to achieve sustainable economic development that benefits society as a whole, taking into account the environmental and social aspects.

The most beautiful World Bank in its extensive study on Islamic financing the previous principles in 3 main principles are:

1. The principle of justice: This principle is the basis for preventing pre -defined payments (usury), with the aim of protecting the weakest party in the financial treatment, as it is prohibited (ambiguity and excessive certainty) and requires transparency and disclosure of information before entering a contract.
   In addition, this principle includes the concept of Zakat, which is a 2.5% tax on wealth to help those in need and enhance social solidarity.
2. The principle of participation: This principle emphasizes that the return on the capital must be achieved by bearing the risks and productive activities, and not just the passage of time, and it ensures that the increase in wealth is linked to real economic activities and productive projects.
3. The principle of ownership: This principle states that one cannot sell what he does not possess, and property rights must be respected, and it requires possession of assets before conducting transactions, which enhances the strong link between financing and the real economy. It also emphasizes the sanctity of contracts and the importance of fulfilling contractual obligations.

These combined principles ensure that Islamic financing enhances justice, sharing risk, and strong association with real economic activities, which distinguishes it from traditional financing based on usury, and for this Western citizens seek to adopt it in their countries.