Moving the World to Islamic Banking. A STUDY OF ISLAMIC BANKING AS A FINANCIAL SYSTEM AND AN ANALYSIS OF HOW IT COULD BE TRANSFERRED TO THE SWEDISH MARKET

Abstract

This thesis provides an explanation of Islamic banking and its concept by the use of a case study of Malaysia, a pioneer within Islamic finance. Furthermore it investigates the implementation of the Islamic banking system in a Western country, where Sweden has been chosen as an example. In order to analyse the Swedish market, four different issues have been developed that an Islamic bank may encounter. Based on these issues a conclusion has been drawn. Islamic banking is believed to be transferrable to the Swedish market, however the bank must acknowledge the circumstances which are specific for the country and thereafter develop a strategy that is unique in its way of doing Islamic banking.