Islamic products and services are currently in the process of being rolled out to the markets by respective Islamic banks and windows, pending the promulgation of Islamic Finance Regulatory Framework (IBRF). Islamic banking is indeed ‘Riba-free’ because Riba is Haram in Islam. However, it is a misconception that Islamic banking is free of any costs to the borrowing clients.
There are both the ‘operating costs’ and ‘profits’ charged by the banks providing Islamic products and services to their customers. These charges are roughly the same as those charged by the conventional banks for their products and services………………………………………..Full Article: Source