Islamic banking: History and development

While the first theoretical work began in the 1940s, the experimental work regarding Islamic banking did not start until 1960. In 1963, the Mit-Ghamr Islamic Savings Bank (MGISB) started in Egypt which is regarded as the first Islamic bank in the world. The first private commercial Islamic Bank 'Dubai Islamic Bank' was established in 1975 by a group of Muslim businessmen from several countries. Within ten years since the establishment of Dubai Islamic Bank, more than 50 Islamic banks came into being not only in Muslim countries but also in some of the Europe countries. The first Islamic bank in Bangladesh was set up in 1983.