Consumer Protection in the GCC Islamic Banking Sector: critical comparison with the UK counterpart

Abstract

Banks are one of the pillars of the global economy, this paper aims to discuss the radical comparison between conventional banks and Islamic banks. To promote a better point of view of protecting consumers, which is one of the roots firmly entrenched in the banking system. Additionally, meeting their needs and provide protection are basic requirements for banks with the different legal systems, whether they are conventional or Islamic. The practices of financial markets, financial instruments, derivatives and banking services start from the basic element, which is the consumer. This paper used a critical argumentative method, after searching in depth in the paradoxes and analyses that used the relevant references. On the consumer protection perspective, the comparison revealed that Islamic banks are established on a non-profit basis, but with humanitarian goals for the consumer. While conventional banks arise from profitable goals and the purpose of developing banking, financing and financial activities. In addition to other aspects of consumer protection in light of the different systems, such as governance and its wide impact, which within the governance structure, risk management is the best way to create radical solutions. Also, the acceptance of governance in the United Kingdom for the Islamic banking system, which greatly affected the Islamic banking industry, given that London is one of the global financial centres, while revealing the challenges and problems faced by the government. Finally, insurance, the most important element in the contractual relations with consumers and its radical differences between the two systems, made a merger in some banks. These findings indicate the need for references in this regard was not an easy task. Due to the different language and the two radically different systems for the same banking industry. This paper faced difficulty in analysing the opinion and revealing the paradoxes that required an economic and financial analytical view, but it was confronted with extensive research and the use of economic specialists to look at the references.