leading Muslim scholars and experts from Arab countries have expressed confidence that Islamic bankig can be successfully implemented in India, where the second largest in the world Muslim community. Explaining the decline in the global economy “greed and lack of principle” Western financiers, advisor of the Islamic Development Bank in Jeddah Umar Chapra said that the direct cause of the crisis was “excessive and imprudent lending.” “Islamic finance rely on justice and equality. Islam forbids usury,” - he said during the Indo-Arab conference organized by the Forum of Indo-Arab economic cooperation.

calling for the development of Islamic banking in India, a member of Islamic Economic Center at King Abdulaziz University in Jeddah, Abdul Azim Islah, said that most earlier studies in the field of Islamic banking was undertaken by scientists from India Osmania University in Hyderabad and the University of Allahabad in Uttar Pradesh.

India seeks to attract investment from oil-rich Gulf countries, and therefore seriously exploring the possibility of introducing a system of Islamic banking servicceaes. Recently, the deputy head upper house of Indian Parliament Rahman Khan told the press that the ruling party proposed to the Ministry of Finance and the Reserve Bank to carry out reforms to ensure the favorable development of Islamic financial sector. Around 150 million Indian Muslims do not trust the existing commercial banks here because of religious prohibitions on the payment and charging interest.

Before the crisis, most investors from the Gulf countries prefer to invest in Islamic banks to the UK and Malaysia. During the stabilization of India, whose economy is one of the fastest growing in the world, earned a reputation as a reliable alternative for investment.