This is course introduces the basics of Islamic banking. Islamic banking has become an important segment of banking industry after establishment of the first Islamic commercial bank, Dubai Islamic bank in 1975. Islamic banking differs from the traditional banking in principles though there are similarities in operations. There are more than 300 Islamic banks are operating in 50+ countries. Conventional banks has opened windows for Islamic banking in UK, middle east and south Asia. Therefore it is important to know how Islamic banks are different from conventional banks and how do they operate and how do the manage their risk.