Islamic banking and finance in Malaysia follow Shariah principles, which prohibit interest fees. The system is based on risk-sharing, allowing market forces to determine capital productivity. This approach leads to sustainable economic growth and fair opportunities. Islamic banking has been growing for almost four decades, with notable banks emerging in the 1970s. In the 1980s, Iran, Pakistan, and Sudan transformed their financial sectors to Islamic principles. Western banks like Citibank and HSBC have also established Islamic sections to attract Middle Eastern depositors. The continuous improvement and diversification of products like Sukuk, Takaful, and Islamic Stock Exchange have contributed to the growth of Islamic banking and finance.