What was dubbed a "utopian dream" in the 1970s has become a reality. Islamic banking and insurance is accepted worldwide as an ethical and a viable financial system underpinned by a strict moral code.
Although Dubai Islamic Bank was the first modern Islamic bank, Islamic banking was pioneered internationally with the setting up of two conglomerates: Dar Maal Islami (DMI), with its headquarters in Geneva, and Al-Baraka, with its headquarters in Jeddah and Prince Mohammad Al-Faisal, as the chairman of the DMI group and late Mr Muazzam Ali its vice-chairman. Late Mr Muazzam Ali took up development of Islamic Banking as a mission and remained associated with DMI for many years.
Before founding the Institute in 1990, late Mr Muazzam Ali established two charity organisations in London: in 1978 he set up The Islamic Trust of Europe as an educational research centre; for conferences and symposiums promoting of Islamic education and other related activities. In 1985 he set up The International Centre for Islamic Studies in London (ICIS) to promote for the public benefit the advancement of knowledge in the operations of Islamic finance, to offer professional qualifications in Islamic banking and insurance and to promote programmes and publications aimed at raising the standard of Islamic finance practice and cognate subjects and to also provide guidance and information as well as a consultation body for the Islamic financial sector.
Appreciating that the Islamic financial system could develop and progress only if supported by well-qualified personnel committed to the practice of Islamic finance and economics, late Mr Muazzam Ali founded the Institute of Islamic Banking and Insurance in London in 1990 to supersede the ICIS. Professor Rodney Wilson, University of Durham UK, Institute for Middle Eastern and Islamic Studies was one of the first to be invited to give a lunchtime lecture at the Institute. The Institute, as a not-for-profit company with charitable objects, continues to be a leading organsation and continues to make significant contributions to the education and training of people in principles underlying Islamic banking and Islamic Insurance aimed at fairness, social justice and equitable distribution of wealth in soiciety without inhibiting individual enterprise, and with a focus on the human dimension of the economy as well as encouraging concepts that encourage greater personal accountability and better resource management acting as a safeguard against exploitation.