about Islamic finance in omanWhat is Islamic finance and when it was launched in Oman  Its purpose  Factors in are unique to Islamic banking (e.g. Prohibition of interest, ..)  Governing principles...

Introduction
Meaning and origin
Islamic banking also termed as non-interest banking, is a unique system of banking that is widely in practice in the Middle East countries. The banks are prohibited from charging interest which is considered as sin under the Islamic or Sharai Law. Instead of charging interest, the banks procure a share in the profit. Hence till the borrower repays the loan amount, the banks are entitled to a share in the business or property, whatever the case may be. They also prohibit giving a loan to the business concerned with alcohol, pork, gambling, and other business that is unethical under Islam. The banking transaction under Islamic law is called as Fiqh al-Muamalat.
Analysis
Purpose
To provide for an alternative option for western banking that don’t follow the principles and ethics of Islam.
General Principles
The banks are based on Sharia law which is derived from the Holy book of Quran and the Hadith. In case of confusion, the bankers take the necessary opinion by learned scholars and Islamic leaders. Thus the operation of the bank is solely based on Islamic principles and guidelines (Indonesia and indonesia, 2015).
Factors unique for Islamic banking
An Islamic bank provides the loan to business however the relationship is as investor or capital provider and entrepreneur. The entrepreneur (borrower) runs the business and shares a part of the profit with the bank until the loan is repaid. Hence in case of loss, the investor (bank) takes the hit. The process of profit-sharing is called Mudharabah. The banks accept deposits from their customers unlike the common practice, the banks don’t pay interest to the customer. The banks also provide loans on an installment basis (EMI) called Bai’ Bithaman Ajil. Under this method, the customer can take a loan from the bank to acquire an asset under his name....