The banking and finance industry is considered as the driving force of development for any economy because it transform the surplus money and savings into financing and investments and many other key functions for facilitating the other sectors of the economy. However, majority of Muslims avoided dealing with the Western or conventional banks on the basis that these banks charge interest on their financial transactions and some other prohibited activities. So, a large sums in the form of financial resources, instead of utilizing into production, was kept idle.
Established in 1990s, the premier focus of Islamic Banking and Financial institutions is to provide banking and financial services according the Islamic principles for those who Muslim potential customers who kept their savings idle in private custody. Islamic banks, instead of applying interest rate in money dealings, provide their services by developing partnership relationship with their depositors and the entrepreneurs. Through this unique feature, Islamic banking has given birth to a new concept in financial sector where: (a) the bank customer relationship had changed from lender-and-borrower to investor-and-entrepreneur, where all parties share in the profit and loss of the business; (b) all the financing is dully back-up by some form of tangible assets, which integrates the financial sector with the real economic development; and (c) the emphases of Islamic economic doctrine has given great emphases to the socioeconomic welfare of the society, which lead to the just and equitable income distribution and balanced economic development. 
In addition to the above, Islamic banking has addressed successfully the issues of economic inequality and financial excludability in the societies they operate. This sacred system, on one hand, encourage the financing and investment habits and facilitate and promote the entrepreneurship skills of the potential individuals, and promote growth of real economic goods and services on the other hand. By recognizing the key features and the potential roles of Islamic Banking System, many conventional banks are now providing on Islamic banking services in both Muslim and non-Muslim societies. The Cumulative Aggregate Growth Rate (CAGR) of Islamic banking and finance industry is about 20% over the last 10 years and total assets held by this industry are estimated as much as USD 3 trillion at present. This outstanding growth has created a shortage of skilled human resources at levels of Islamic banking industry. Islamic banking offers a wide range of Islamic Shari’ah compliant products and services, for which a highly trained and competent workforce is needed.     
The Department of Economics, at King Saud University, has anticipated this scenario well in advance and has been offering many courses on Islamic Banking and Finance at its Bachelor and Master level programs. Along this, the department is supporting the scholarly studies and applied research on Islamic Banking and Finance, Islamic Banking and Finance has significant importance in the Ph.D. Program of the department. Above the all, the department had a plan to establish an autonomous and dedicated center to institute applied research and training on Islamic banking and finance. The establishment of Islamic Banking Center (IBC) at the department of economics is a remarkable achievement towards the research and education at King Saud University. 

About IBC

The establishment of Islamic Banking Center (IBC) at the department of economics is another leading and appreciable initiative of towards achieving the excellence in the research and development at King Saud University. The Center is established with the generous funding donated by the Shaikh Saleh Abdullah Kamel, Chairman and Founder of Dallah Al-Baraka Holding Foundation, as an expression of his keen interest in the promotion and facilitation of Islamic banking and finance studies and practices. The Center’s budget will come primarily from Sheikh Saleh Kamel Waqf donated to King Saud University for this purpose. Read more...

Director Message

Dear Colleagues and Practitioners Very warm welcome, Last three decades were the period of major developments, emerging trends, and new beginnings. Besides the respectful recognition from the academia and policymakers, Islamic Banking System has achieved a historic high growth rate and now it holds a significant share in the global financial market... Read more...