Question

Samia is a client of a conventional bank in Bahrain. She used to deposit her savings in the bank with

the aim of receiving an interest (riba) on the money saved. One day, Samia heard her friend Aysha,
an employee at one of the Islamic Finance Institution, talking about the products that are prohibited
in Islam including the Riba. Samia was astonished about what she has heard from Aysha, and she
was interested in learning more about the non-prohibited Islamic finance products and how Islamic
banks differ from the conventional banks. After her conversation with her Aysha, Samia decided to
switch into the Islamic Banks and use their services to finance her transactions.
a- In your opinion, why did Samia decide to switch to Islamic banks? Support your answer with
reference to the items that are prohibited in Islam
b- What do you think Aysha has told Samia about the differences between the Islamic banks
and conventional ones that made Samia changes her opinion?

Answer 1

Samia decided to switch to Islamic banks because they do not engage in the prohibited practice of charging and receiving interest. Islamic banks offer financial products based on profit-sharing and asset ownership. Aysha likely explained the differences between Islamic banks and conventional banks, emphasizing the absence of interest and the focus on ethical investments.

Step-by-step explanation:

Samia decided to switch to Islamic banks because she learned that conventional banks engage in the practice of charging and receiving interest (riba), which is prohibited in Islam. Islamic banks, on the other hand, offer financial products that comply with Islamic principles and do not involve the payment or receipt of interest. These products are based on profit-sharing and asset-backed transactions, such as mudarabah, musharakah, and ijara.

Aysha likely told Samia that Islamic banks follow a different financial system based on Islamic principles. Unlike conventional banks, Islamic banks do not charge or pay interest. Instead, they offer products that are based on profit-sharing and asset ownership. Aysha may have also mentioned that Islamic banks prioritize ethical and socially responsible investments, which align with Islamic values.