Introduction
Islamic vision of socio-economic equality is based on abolishing interest and other elements that are exploitative in nature. The Islamic financial system allows borrowing, lending and other investment functions based on risk system.
This helps the market forces to understand the productivity of capital rather than simply fixing it in the form of “rate of interest” to damage the mechanism of free trade (Abedifar et al. 2015). The Islamic financial system allows proper rate of capital formulation and its proper use leading to a sustainable economic growth and equal opportunities for all. The Islamic banking and financial system is about four decades old. The aim of the paper is to analyse the growth of Islamic banking system and finance in the modern world. It captures the developments that took place in the finance and banking industry across different sectors and market.

Literature Review:
Islamic banking and the financial activities are mainly divided in three parts of the world including Middle East, Southeast Asia and South Asia. The middle east is populated by Muslims and it is regarded as the motherland of Islamic banking and finance. Islamic banks enjoy support from people who are rich, governments and other organisations operating in the Middle East (Gheeraert and Weill 2015). The regulatory and the supporting bodies of the Islamic banking and finance industry is mainly located in the middle east.

The Middle East is the main place where Islamic banking and finance began. Islamic institutions are making efforts to form a wide array of customer oriented, innovative and competitive services for their clients. It is the main objective to obtain strong hold over the different oil wealth and discourage the other organisations in the western world from continuing with the interest system of banking (Iqbal and Molyneux 2016). Likewise, in south Asia as well there is a great potential to become a hot spot of Islamic banking. Majority of the Muslim people in south Asia belong to countries namely Afghanistan, India, Maldives, Pakistan and Bangladesh. Muslims form the largest minority in India. The Indian economies have experienced a great rate of growth over the past few years. Majority of wealthy investors and banks from the Middle East are interested in taking up Islamic investment activities in the Indian and Pakistani markets (Abedifar, Hasan and Tarazi 2016).  Presently some of the Islamic banks are operating from Bangladesh and Pakistan and there is a high chance that Islamic banks will soon be set up in India and Afghanistan. The Southeast Asian countries also host the fast growing economies in the world. The Southeast Asians financial markets are very independent, competitive and integrated. The Islamic banking industry is becoming a very important part of the south Asian financial markets (Khaliq and Thaker 2017). Malaysia, Singapore and Indonesia are soon to use Islamic banking as an attractive tool and investments from the Middle East. These countries play a very important role in promoting banking and finance in the global financial markets. In the same way, Sudan started the journey of Islamic banking in the year 1977 under the system of double banking. The first Islamic bank named as the Faisal Islamic Bank was formed under the leadership of Prince Muhammad Bin Faisal al Saud. In the year 1983, three more Islamic banks were formed namely, Sudanese Islamic Bank, Tadamon Islamic Bank and Islamic Cooperative Bank. Soon after, the government of Sudan passed a law in favour of the Islamic shariah Act in the year 1984. However, as part of the economic crisis and other political chaos over the past few years the Islamic banking system was established in the country (Imam and Kpodar 2015).

Findings and Analysis:
Based on the investigation that took place as part of the secondary research it was found that the Islamic banking and finance industry has made improvements and have become a very viable and competitive systems at a global level is made. Islamic banking in the Middle East, Southeast Asia and South East have developed booming grounds (Imam and Kpodar 2016). The increasing Islamic hubs have acted as a establishing pad to promote Islamic banking in the western Islamic market. Some factors have contributed to the present success of the Islamic banking and finance system such as oil prices worldwide, product innovation and sophistication. Keeping all the growing factors in mind, Islamic banking has the capacity to win over the majority of customers from the Muslim world that forms about 24 percent of the population of the world. Presently some of the Islamic banks are operating from Bangladesh and Pakistan and there is a high chance that Islamic banks will soon be set up in India and Afghanistan. The Southeast Asian countries also host the fast growing economies in the world. The Southeast Asians financial markets are very independent, competitive and integrated. The Islamic banking industry is becoming a very important part of the south Asian financial markets. Malaysia, Singapore and Indonesia are soon to use Islamic banking as an attractive tool and investments from the Middle East. These countries play a very important role in promoting banking and finance in the global financial markets. In the same way, Sudan started the  journey of Islamic banking in the year 1977 under the system of double banking. The first Islamic bank named as the Faisal Islamic Bank was formed under the leadership of Prince Muhammad Bin Faisal al Saud (Gheeraert and Weill 2015).

Conclusion:
The Islamic banking and finance system allows more ethical and efficient alternative to the interest based financial system. Islamic banking and finance emerged in the Middle East in the early 1970’s and it was based on the models that were followed that were formed by the Islamic economists. Some other Muslim countries also followed the suit and established their own Islamic banking institutions. Three Muslim countries have also embarked on the adoption of the Islamic banking order. Thus, it can be said that the Islamic financial system allows proper rate of capital formulation and its proper use leading to a sustainable economic growth and equal opportunities for all. The Islamic banking and financial system is about four decades old. The aim of the paper is to analyse the growth of Islamic banking system and finance in the modern world. It captures the developments that took place in the finance and banking industry across different sectors and market.

References:

Abedifar, P., Ebrahim, S.M., Molyneux, P. and Tarazi, A., 2015. Islamic banking and finance: Recent empirical literature and directions for future research. Journal of Economic Surveys, 29(4), pp.637-670.

Abedifar, P., Hasan, I. and Tarazi, A., 2016. Finance-growth nexus and dual-banking systems: Relative importance of Islamic banks. Journal of Economic Behavior & Organization, 132, pp.198-215.

Gheeraert, L. and Weill, L., 2015. Does Islamic banking development favor macroeconomic efficiency? Evidence on the Islamic finance-growth nexus. Economic modelling, 47, pp.32-39.

Imam, P. and Kpodar, K., 2016. Islamic banking: Good for growth?. Economic Modelling, 59, pp.387-401.

Imam, P.A. and Kpodar, K., 2015. Is Islamic Banking Good for Growth? (No. 15-81). International Monetary Fund.

Iqbal, M. and Molyneux, P., 2016. Thirty years of Islamic banking: History, performance and prospects. Springer.

Khaliq, A. and Thaker, H.M.T., 2017. Dynamic Causal Relationship Between Islamic Banking And Economic Growth: Malaysian Evidence. European Journal of Islamic Finance, (8).