Journal of Islamic Banking and Finance

An Introduction to Islamic Banking (Rise and Development)
Mohd Iqbal Malik

Abstract
In the present age a nation is identified by its economy. Shah Waliullah Muhadith Dehlvi (1703-1762) said, "When an economy of the nation is stable, morality shows the signs of progress." Islamic banking is the alternative by which Muslims nations make their existence strong and progressive. Since its inception, it uplifted Muslims economic depletion to the heights of economy. Before taking this work into our hands we have been suggested with various topic but we chose this topic only we have intimate interest in Islamic banking. Our main objective and aim in this research is to limelight the socio-economic factor that resulted emergence of Islamic banking. Various notable scholars had thrown light on various aspects of Islamic banking but less attention had been given on the socio-economic factors that compelled Muslims to go for this initiative. When Islam knocked at the doors of Arabia, the Socioeconomic conditions of Arabia were gloomy. The people of Arabia were suffring from socio-economic crisis. But as soon as Islam emerged, it provided solution and vanished every type of activity that was against humanity. The drastic step took by Islam was opposite to those activities that came as a hindrance in economic progress. It managed the economic system in such a way that economy of the then society progressed simultaneously by establishing Bait-ul- Maal . Later on same more economic institution were set up like Bait-ul-Maal-al-Khas, Bait-ul-Maal al- Muslimeen, Diwan, Jahbadh etc.

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