. Explain one operational principle of Islamic Bank (5 Marks) - (B1).

Musharaka principle - A Partnership where Shariah divides in 2 categories:

1. Sharikat al Mulk joint ownership of certain properties does not involve joint venture to amalgamate properties concerned
2. Sharikat al aqd- concept of joint exploitation of capital & joint participation in profits & losses: sharikat mal (financial partnership); if based on experience or expertise of partners or workforce partnership is called sharikat amal
3. Explain the development of Islamic Banking in Bahrain (5 Marks)