Arrasikhun International Journal, Volume 4, Issue 2, Dec 2018 ISSN: 2462-2508 Examining the Factors that affect the adoption of Islamic banking system in Syria Ahmad Othman 1 Faculty of Finance & Administrative Sciences Al-Madinah International University ahmed.othman@mediu.edu.my Barjoyai Bardai 2 Faculty of Finance & Administrative Sciences Al-Madinah International University barjoyai.bardai@mediu.edu.my Abstract Islamic Banking is an important banking system offering the interest free activities based on the principle of Shariah products and services. This research is conducted to examine the factors that affect the adoption of Islamic banking in Syria. Questionnaires were designed and distributed among the banks customers in Syria. 200 questionnaire were distributed to collect the data. The results showed that the factors effecting significantly on the adoption of Islamic banking were religious, confidence, trust, and reputation. The relationship between the success implementation and the above factors were very significant . Keywords: Islamic Banking, Interest free, Shariah products and services, religious, confidence, trust, reputation. 1. INTRODUCTION The foundation of Islamic banks as another wonder in the budgetary world can be followed back to the mid of the twentieth century (Warde, 2000). Notwithstanding, the musings of applying the Shari'ah law (lawful guidelines of Islam) in managing an account exercises was interestingly placed practically speaking by the foundation of the country bank in Egypt in 1963, trailed by the foundation of an agreeable bank in Pakistan in 1965. In 1971, Islamic banks have kept on developing in size and numbers. The primary mission of these banks has been the accomplishment of social and monetary improvement through the conveyance of money related administrations in accordance with the standards and lessons of Islam. The fast development of the Islamic keeping money framework in the worldwide saving money and capital market was connected with the foundation of the Islamic Development Bank (IDB) in 1975 (Elgar, 2003). The first commercial Islamic bank to apply full packages of Islamic banking product was Dubai Islamic bank in 1975 (Zaman & Movassaghi, 2001). The Islamic banks apply the Islamic law (the Shari’ah) and use Islamic financing instruments. Islamic modes of financing consist of two basic principles, the first principle is the interest-free financing instruments in the private sector and the second one is the development financing instruments based on both cost and profit sharing (Siddiqi, 1983). The Islamic banks speak to another time of enlivening of the Muslim people group. The Muslim people group is returning back to the Islamic lessons in the exchange, exchanges, credits and to discover answers for contemporary issues, for example, the broadening salary and riches crevices between the rich and needy individuals and to confront monetary and money related emergency which has been ejected in the free enterprise nations (Ebrahim and Joo, 2001). The Islamic banks have demonstrated their reliabilities in the season of emergency, the significant banks in the west have caved in and declared their liquidations for the most part because of premium based keeping money framework. A decent case of the shortcomings was knowledgeable about the emergency of Lehman Brothers bank and numerous American banks which could have not confronted the money related emergency in 2008 (Ivashina and Scharfstein, 2010). On alternate hands Islamic bank was a case of accomplishment in the season of emergency in light of the fact that the budgetary emergency influenced the Islamic banks just marginally. The achievement of Islamic banks has pulled in the consideration of routine banks, for example, Citibank and Hong Kong and Shanghai Banking Corporation (HSBC). These banks have made extraordinary backups or windows to take care of the interest for Islamic saving money items and administrations (Ariff and Iqbal, 2011). As per Ebrahim and Joo (2001) the fundamental objectives of an Islamic Banking and Financial framework are to: 1- Implement the esteem arrangement of the Qur'an and the Sunnah (convention or routine of Prophet Muhammad Peace Be Upon Him (PBUH)) in the domain of the Muslim financial framework. As indicated by Islamic lessons identified with business exchanges, all exercises are allowable unless taboo by the Quranic disclosure (Qur'an) or the act of Prophet Muhammad PBUH. 2- Speed up the development of the economy of Muslim countries by creating monetary markets, establishments and instruments. A very much created capital market, effective establishments, assorted money related offices, can decrease the general cost of capital. It can upgrade social welfare by encouraging the acknowledgment of undertakings which advantage the general public. 3-Decrease the stuns of extraordinary financial yield by advancing danger sharing instruments whose settlements are entirely dependent upon the gainfulness of a firm or venture at a miniaturized scale level. Monetary offices with altered expenses can extremely strain the assets of borrowers amid a log jam, which prompt to liquidations and basic disability of the economy. 2. BACKGROUND OF THE STUDY The expression "Islamic Banking" is characterized as the direct of managing an account strategies in cognizance with Islamic lessons. The principle regulations of Islamic managing an account exercises include disallowance of intrigue (Riba) in all types of exchanges undertaking business and exchange exercises, in light of, reasonable and