Islamic Finance and Entrepreneurship

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Saudi Arabia

138,238.50

15

Syria

5,527.70

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Malaysia

102,639.40

16

Jordan

5,042.40

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United Arab Emirates

85,622.60

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Brunei

3,314.70

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Kuwait

69,088.80

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Yemen

2,338.70

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Bahrain

44,858.30

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Thailand

1,360.80

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Qatar

34,676.00

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Algeria

1,015.10

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Turkey

22,561.30

21

Mauritius

992.20

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United Kingdom

18,949.00

22

Switzerland

935.50

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Bangladesh

9,365.50

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Tunisia

770.10

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Sudan

9,259.80

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Singapore

725.00

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Egypt

7,227.70

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Palestine

612.50

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Indonesia

7,222.20

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Moreover, the industry is expected to continue to grow in new regions of the world as conventional banking institutions in non-Muslim countries such as India, China, Japan, Germany, the United Kingdom and the United States have set up Islamic subsidiaries to cater to this growing market niche (Karim, Tarazi and Reille 2008). Countries in East Africa such as Kenya, Ethiopia, Tanzania and Uganda have also all “reported growing interest in shari’ah-compliant financing” (ibid).

It is important to note that it is not merely the Islamic lending industry which is becoming increasingly popular, but many consumers are also opting to deposit their savings in Islamic banks as well. This trend is occurring despite the fact that unlike conventional banks, Islamic banks do not provide consumers with a guaranteed rate of return (they instead operate under a profit and loss partnership structure similar to Islamic loans). These clients are exposed to an increased risk: if the bank incurs a loss the client becomes vulnerable to losing his or her savings (even the client’s principal is not secure). However, if the bank is successful, then the client enjoys a profit rather than a fixed interest rate. As outlined in the

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