So they are deciding which model to follow. The Malaysian model is the one that strikes a balance. The Malaysian model consists of the regular banking system and Islamic banking coexisting side by side. Many Arab countries are considering copying the system. Banks built upon Islamic principles of profit, most obviously, make a profit through equity, which is the money value of property or an interest in a property.
Investors share in profits and losses.
Even if you lease a car through a regular bank, part of the calculation includes an interest rate. In the Islamic version of leasing, the interest payment is not an implicit part of the calculation. There is a rental payment for the object. Islamic banks function in the U.S. mostly through leasing. Also in other Arab countries there have been major Islamic bank transactions that basically lease airplanes to national airlines.