8th World Summit on Management Sciences
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Accepted Abstracts

Historical Development of Islamic Banking System in Sudan, A Critical Review (1903-2018)

Omer Allagabo Omer Mustafa*
Sudan Academy for Banking and Financial Sciences, Sudan

Citation: Mustafa OAO (2020) Historical Development of Islamic Banking System in Sudan, A Critical Review (1903-2018). SciTech Management Sciences 2020. Thailand 

Received: December 13, 2019         Accepted: January 29, 2020         Published: January 29, 2020

Abstract

The aim of the paper is to review critically the stages of development of the Islamic banking system in Sudan for more than 115 years ago (1903-2018). The historical and descriptive analytical approaches were used. The Central Bank of Sudan annual reports and previous studies data were collected and used to describe and compare between stages during that periods. The results found that political instability and changing ideology of the state (Colonialism, independence and democracy, socialism and Islamic) systems played a major role in the formation of stages of development of the banking system in Sudan (conventional, Islamic, dual system or mixed). Moreover, the implementation of the Islamic Sharia Law in 1983 was the first basis for deepening of the Islamization of banking system, particularly the prohibition of dealing with the interest. Under the Comprehensive Peace Agreement (CPA: 2005-2010), conventional banking (interest rate) in Southern Sudan was returned and the continuation of the Islamic approach in the north but all banks were managed by one central bank in the north. The study highlights the importance of factors leading to political stability in order to ensure stability in the banking system.
Key words: Historical, Development, Islamic Banking System, Sudan, Review.
JEL Classification:   E58, E61, G21, G28, P41.