Financial Management and Accounting

Attached.

Running head: FINANCIAL MANAGEMENT AND ACCOUNTING

Financial Management and Accounting
Student’s Name
Institutional Affiliation

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FINANCIAL MANAGEMENT AND ACCOUNTING

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Comparison and Contrast between Sharia and Western Banking
Abstract
The purpose of this paper is to compare sharia banking and Saudi financial management
practices with western banking and financial management practices. Understanding of the
banking practices between the two sectors is of paramount significance to the paradigm of
banking and a unique chance to appreciate roles played by the two banking practices. Both the
sharia banking and western banking have grown to a greater extent, each contributing to
improvements in banking services than it was previously. An explanation of the existing
differences between the two financial management practices shall be provided in the paper to
expound on their importance.
Furthermore, attempts to start a business in countries that don’t follow sharia banking and
financial management practices may encounter some difficulties. Therefore, this paper explains
the challenges faced in such a process. Similarities and differences exist between the sharia
banking and western banking practices.
Comparison and contrast of sharia banking and Saudi financial management
practices with western banking and financial management practices.
Sharia banking and western banking practices have the same purpose because both of
them serve to provide banking services to their customers. However, their practices are different
where the sharia banking practices operate strictly per the sharia laws. Generally, the sharia way
of banking is based on offering facilities more or less the same way as the western way of
banking. Even though this is the case on how they carry their practices, the welfare of the Islamic
religion is the priority (Islam, 2019). Banking processes are not so different since funds and
relation to interest rates are the same between the two banking systems.

FINANCIAL MANAGEMENT AND ACCOUNTING

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Additionally, guarantees are required in western banking practices as in sharia banking.
Despite t…