Abstract:
The Islamic banking system has been operation since 1960. Islamic banking products and
services are available in Islamic banks and Islamic windows operated by conventional banks.
However, awareness of Islamic banking products and services has been low. The stability of any
economy is dependent on the performance of the financial sector. The financial sector functions
as an engine to the economy linking units to deliver goods and services to the people. Islamic
banking works on a concept of free interest and it is practiced according to the Sharia Law whose
source is from the Quran. This study analyzed the role Islamic banking products and services on
investment . A sample of 56 respondents from Salaam bank was selected. Descriptive statistics
and a binary logistic model were used to analyze the responses. The results indicated that gender,
age, race, and qualification were statistical significant in influencing awareness of consumers.
The study found a positive relationship between investment and Islamic banking products which
include Murabaha, Mudaraba, Musharakah and Salaam contract had a positive impact on the
investment in salaam bank. The study concludes that Islamic banking products leads to improve
Islamic investment.
