From this, Islamic scholars infer that purchasing land or property purely for speculation is not permissible, but buying it to undertake economic activities is allowed.
Similarly, Islamic banks can provide loans to buy land that will be used for economic activities but cannot profit purely from land price appreciation. Next, it will need to attract a significant client base. As of October 2022, it reportedly had almost 8,000 prospective customers on its waiting list.
Like other banks, Islamic Bank Australia will need to gain accreditation from the Australian Prudential Regulatory Authority. It says it will apply for this in mid-2024.In many Muslim-majority countries, such as Malaysia, a separate Sharia Advisory Council, typically appointed by the country's central bank, oversees the Islamic finance industry.
For example, Islamic Bank Australia must maintain an account for settling any transactions with the Reserve Bank.