A project Undertaken as Part of bsc (Hons) Economics with Finance degree, Westminster International University in Tashkent

Islamic banking

As it has been mentioned above Islamic banking works under the Shariah principles, which is an Islamic law and it works consistent with the guidance of Islamic economics (Aburime & Alio, 2009). The first main difference between Islamic and conventional banking system is interest rate based principles. Islamic banking offers interest free loans. Second difference is the profit and loss sharing which makes this bank more unique than the conventional banking systems (Ariff, 1988). Islamic banks are prohibited from either earning or paying any interests on loans, which were funded. The banks are allowed to collect the exact amount that was landed to the other party. It can be a financial burden when it comes to the interest payments especially for small businesses. The profit and loss sharing term shows the financial trust and partnership between lander and borrower (Yudistira, 2004). In this paper, due to information inaccessibility and the quandaries in measuring the advancement of Islamic Banking framework, the aggregate financing of the Islamic banks to nominal GDP are utilized.

Return on investment

The main aim of the enterprises or firms is to generate profit. ROI is the best option to calculate and compare the business process and how the business actually performing. Some believes that ROI is as same as the profit however, these two has a big difference, basically, helps to find out the best alternatives to invest. Moreover, by calculating ROI you will be aware of pricing policy and all the other investments in the business. Recently investors usually use ROI in stock market to find the best option to invest and it is easy to use and very effective. Return on investment is calculated by dividing gross savings to gross investment. Data is obtained from World Bank official web page.

Economic growth

Economic growth is the main factor of doing business and being and entrepreneur. It is commonly known that if the economic is well grown people tend to do open new services or product because it is obvious that the nation will demand for the product with a good quality and affordable price. Thus, in a country with good economic growth entrepreneurs are motivated to start new business project. In the past three decades, we witness the remarkable consistent economic growth in Malaysia.in 2004 the real number of GDP raised to 5.3 percent. Accordingly, during this time new enterprises and businesses were entering the market. Which shows the positive relationship between economic growth and business performance.