Muslim Majority Country Research: Muslims in Kuwait (Essay Sample)

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Muslims in Kuwait
The majority of the population in Kuwait are Muslims (Isiorho & Charles 39). The presence of Islam in developing countries such as Kuwait has led to the development of Islamic Banks that have played an essential role in the increment of gross domestic product of the same countries. The participatory schemes of Islam integrate the assets owned by borrowers and lenders. The assets enable Islamic Banks to give credits on a long-term basis to allow the creation of projects with profiles of higher risk-return, and therefore, they help in supporting the economy growth (Casey et al. 25).
The invention of the new banking industry that is compliant with the Shariah leads to higher development in the banking sector, as shown by the amount of bank deposits or private credits scaled to GDP. Some of the developing economies such as Kuwait have already begun to introduce the new finance model in their economic system. It is important to understand this new finance model due to its benefits. The benefits include reduced doubt and uncertainty, the absence of speculative trading, profiteering, lack of excessive leverage, attachment to the actual activity, and ensuring that all the parties have equal bargaining power (Brian 15).
Therefore, Islamic Banks play a significant role in achieving banking operations in a more secure and more reliable economic framework. Islamic banking is a banking system that accrues no interest, and it is based on real assets and all the risks are shared between the borrower and the lender under the lease, sale, joint ownership, and partnership mechanisms. It is different from the conventional banking where the primary product is dealing with interest. Therefore, the presence of Islamic culture in Kuwait has a great ...