The National Bank of Tajikistan (NBT) and Zaid Ibrahim & Co., the largest private law firm in Malaysia, have reportedly signed an agreement on development of Islamic banking. Tajik central banks press center reports the agreement was signed in Dushanbe last Tuesday. Under this agreement, the sides will work out a draft law “On Islamic Banking in Tajikistan” for the purpose of expansion of Tajikistan’s banking system.
Islamic banking (or participant banking) is banking or banking activity that is consistent with the principles of sharia law and its practical application through the development of Islamic economics. Sharia prohibits the fixed or floating payment or acceptance of specific interest or fees (known as riba, or usury) for loans of money. Investing in businesses that provide goods or services considered contrary to Islamic principles is also haraam (“sinful and prohibited”)………………………………………..Full Article: Source