The Islamic Banks and Financial Establishments in the Council of Cooperative Gulf Countries: The Reality and Challenges

M. Nagim, Raghad; H. Neama, Nagham

	The Islamic Banks and Financial Establishments in the Council of Cooperative Gulf Countries: The Reality and Challenges
AL-Qadisiyah Journal For Administrative and Economic sciences
Article 1, Volume 11, Issue 2, 2010, Pages 122-154 PDF (0 K)
Authors
Raghad M. Nagim; Nagham H. Neama
Abstract
When Islamic Banks started business in the seventieth of the last century, there were doubts in their ability to survive, confront and therefore, compete. Stating such an idea can not find its place in the world of finance and banks, but through the traditional banks. This idea will not be executed, applied. And succeeds unless it depends on the rules of business and finance which come out of objective economy. There was no place for the idea of finance movement and its consequences for what so called Islamic economy. In spite of those doubts, People who were in charge of Islamic exchange and specialized in this field ensured that there is a complete world which can be called the world of Islamic Exchange. It is normal to admit that the idea of Islamic Exchange would not be that easy. But there were many challenges and difficulties. The defenders of the Islamic Banks were so confident that they had the keys and the tools for success. There are now the evidences on that. Their continuous steps which ensured their increasing shares among other dealers in the world of finance. This research work aims at showing the importance, the Islamic Exchange recently acquired .The Islamic Industrial finance has become a reality in the world of exchange. It has got increasing admission to the World financial Exchange. To fulfill its goal, the research analyzed the importance of Islamic Exchange in the council of the cooperative Gulf countries which has a vital role in the improvement of the Islamic financial industry. The research has concluded the following: 1- The tendency of establishing several branches of Islamic banks is due to several reasons that are .One of them is the competition and imitation or may be because of the financial rewards which are more than that in the traditional banks. There are lots of customers who Want to save their money in banks and refuse to take any profits and that is a good promising opportunity for the traditional banks to get profits, because there are great amount of money in the financial markets with low price. 2- The Islamic banks have practiced banking in different ways like establishing new specialized branches or new Islamic sections within the traditional banks and by introducing some Islamic products to investigate money. The international group for finance and business has indicated that the number of the traditional banks is (310) in the whole world and the investigated money is about (350) billions. 3- The experiments of the council of the cooperative Gulf countries was considered an exclusive one .Its establishments played a vital role in developing and improving Islamic Financial industry .these establishments created several products which fulfill the needs of the customers, including the individual exchange and companies loaning and cover the projects needs in different sectors. It also participated in the financial rise of the petroleum products which empowered the Islamic financial industry. The research gave the following suggestions: It is necessary to deal with the international banking criteria in the fields of the financial balancing and controlling to improve the establishments budgets in the Arab countries. These efforts in the Islamic exchange should not be just about the legal rules only but should give other chances to the innovation and perseverance in the fields of economics and finance

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