Abstract
LL M. (Commercial Law)
It is believed that Islamic banking and finance is currently the fastest growing system of banking in the world. In 2010, Islamic finance institutions reported an estimated USD 1 trillion in global assets, and an estimated growth rate of 15%.1 Many countries have taken notice of this growth, and have attempted to implement measures that will allow them to best reap their share of the spoils. This dissertation will attempt to explain the nature of Islamic banking, its history and development, as well as the main principles upon which it is based. The dissertation will then compare Islamic banking and its Western or conventional banking counterparts as well as advantages and drawbacks of both systems. The dissertation will attempt to provide an exposition of the current regime in South Africa and its impact on the functions of Islamic banks, as well as providing an explanation of how these banks operate within the South African legal framework. The dissertation will also explore the legal systems and regulation of Islamic banks and other financial institutions in other jurisdictions, and also attempt to provide a guide as to whether the South African position needs reform or whether it is sufficient to take advantage of this growing sector of finance ...