Analysis of Tawarruq as a banking activity in Saudi banks compared to Malaysia and Islamic finance UK.

Abstract

Compliance with Sharia principles is very important to Islamic banks (IBs) or even to conventional banks that offer Islamic windows. Therefore, the regulatory framework that governs the activities of IBs includes the extent of their commitment to and application of Sharia principles. Therefore, tawarruq has been used to examine the importance of implementing these regulations , and it is noted that many banks have deviated from properly applying the principles of Sharia. Thus, Sharia governance or the related framework are important requirements for all countries that have made Islamic finance available. In this research, Saudi Arabia was chosen for measuring the extent to which current regulations are compatible with Sharia principles, and it can be noted that it lacks regulations that are related to Islamic finance. Malaysia, on the other hand, is regarded as one of the most experienced countries in terms of Islamic finance and its rules. Also, the UK is considered a non-Islamic country, yet it is the main hub for Islamic financing in the West.