Bank Islam Malaysia Bhd started operations as Malaysia’s first Islamic bank in 1983. Set up with an initial authorised capital of RM500 million and a paid-up of RM 79.9 million, the bank has gradually increased its authorised and paid-up capital to RM2 billion and RM563 million respectively. The second full-fledged Islamic bank to be established in Malaysia was Bank Muamalat Malaysia Bhd, which started its operations in 1999.

Bahrain-based General Council for Islamic Banks and Financial Institutions (GCIBFI) estimated that the global Islamic banking market was worth US$270 billion in 2004. In Malaysia, Islamic banking is in the mainstream of the country's financial sector, contributing about 11 per cent of the total banking market share in 2005.

The Islamic Finance House was established in Luxembourg in l978, representing the first attempt at Islamic banking in the Western world. Today, Islamic banks and financial institutions have been successfully established in countries where Muslims are a minority including India, Switzerland, Denmark, Copenhagen, the United Kingdom and Australia.

Between 1976 and 2002, IDB dedicated almost one-fifth of its project financing, amounting to just over US$ 1.5 billion to water-related projects. Of this sum, 60% went to water supply and sanitation, while 31% was devoted to irrigation and 9% to hydro-electric power.

Between 1976 and 2002, IDB dedicated almost one-fifth of its project financing, amounting to just over US$ 1.5 billion to water-related projects. Of this sum, 60% went to water supply and sanitation, while 31% was devoted to irrigation and 9% to hydro-electric power.