The Islamic Finance Handbook: A Practitioner's Guide to the Global Markets

13JordanIslamic Finance in the Hashemite Kingdom

Khawla Al Nobani

Specialist in Islamic Financial Advisory Services

Islamic finance in Jordan started with the establishment of the Jordan Islamic Bank in 1978. It had an initial capital of 2 million dinars, which has increased to become 125 million dinars (US$176.5 million).

The Central Bank of Jordan denied permits to conventional banks while continuing to offer permits to Islamic banks, which became four working banks in 2012. One of these is a branch of the foreign bank Al Rajhi. Islamic windows are not permitted in Jordanian banks by law.

Despite the limited existence of the culture of Islamic finance, it is a necessity and a requirement, especially after the recent financial crises. Despite their growth, Islamic financial institutions must become more involved in meeting the needs of their customers and be able to take for granted the religious allegiance or sympathy of their customers.

People who are concerned with the growth and success of these institutions need to concentrate on financial transparency and develop their products and services to compete with conventional financial institutions and offer a comprehensive alternative.

The growth of such institutions is promising, and they are starting to acquire an ever expanding share of the financial market. But it seriously needs to be coordinated, to be part of the bigger concept of the Islamic economy, and to become part of the broader Islamic civilization and model, ...