Islamic finance, which has begun to take its place in the global financial markets rapidly, is attention of market players. Islamic finance, which offers alternative opportunities for investors, is at the center of the financial world by expanding its product range. Even if the Islamic finance was laid the foundation in medieval times, the development in the modern sense has been in the 1960s. Savings banks became the first institutions of Islamic finance, and later commercial banks, insurance companies and portfolio organizations began to develop. In 2000s, they began to take place in the e-commerce industry.
Islamic financial products and services have been developed to replace existing financial instruments in accordance with Islamic principles or to comply with these principles. Within the framework of Islamic principles, stock, borrowing and securities has developed structured products as well as products combined. These products can be used in the following areas: mudaraba (profit sharing), musharaka (profit-loss sharing), Karz-i Hasen (interest-free loan), icara (leasing), murabaha (cost and profit sharing sales), Selem (future sale), wakala (proxy), istisna (purchase order) and sukuk (asset based Islamic securities).
Among the important institutions of Islamic finance are the Islamic Development Bank, the International Islamic Finance Market, the Islamic Financial Services Board and the International Islamic Rating Agency. A large fraction of the Islamic financial sector in the world is interest-free banking. It is observed that Islamic Banks exist predominantly in the Middle East and South Asia regions throughout the world. Especially the Gulf States and Malaysia are being shaped as the main markets of Islamic finance. Again, Turkey, Pakistan and Indonesia are expected to receive a significant share of the Islamic finance market. Significant initiatives in Islamic finance have also been launched in areas where the Muslim population is low. Among them United Kingdom leads the way.