Middle Eastern arab business man posed on street with sunglasses, speaking on mobile phone.

Islamic banking is a system of banking that operates in accordance with Islamic principles, which are based on the principles of Sharia (Islamic law). While it was initially developed to cater to the financial needs of Muslims, Islamic banking services are not exclusively restricted to Muslim clients. Non-Muslims can also use Islamic banking facilities and services if they wish to do so.

The key distinction between Islamic banking and conventional banking lies in the principles on which they operate. Islamic banking prohibits the charging or paying of interest (riba), as well as investments in businesses considered haram (forbidden) in Islam, such as those involved in alcohol, gambling, pork, and other unethical activities. Instead, Islamic banks use various Islamic finance mechanisms like profit-sharing (Mudarabah), partnership (Musharakah), leasing (Ijarah), and trade-based transactions (Murabaha) to generate returns.

Many non-Muslim individuals and businesses find some aspects of Islamic banking appealing, such as its focus on ethical and socially responsible investments, and its avoidance of interest-based transactions. As a result, Islamic banking has gained popularity in some parts of the world among both Muslim and non-Muslim customers.

However, the availability and accessibility of Islamic banking services may vary depending on the country and region. In predominantly Muslim countries, Islamic banking is more prevalent and widely accessible. In other regions, it may be less common, but some conventional banks might offer Islamic banking products and services to cater to the demand from both Muslim and non-Muslim customers.

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