Shariah observation: advertising practices of Bank Muamalat in Malaysia

Abstract

PurposeThe purpose of this paper is to assess the existing advertising practices in Malaysia and their compliance with the Shariah (Islamic Law).Design/methodology/approachUsing descriptive observations, the promotional tools and practices used by the prominent conventional banks were compared to those used by the Islamic banks. A total of 40 different advertisements were assessed as well as staff and personnel from 30 branches were interviewed.FindingsThe paper reveals that customers remain unaware of the Islamic banks' products. Shariah‐based promotions will help increase customer awareness of these banks and their offerings.Research limitations/implicationsFuture research on Shariah‐based promotions and advertising will improve banks' effectiveness and help position them as role models for other advertisers, both Islamic and non‐Islamic. The producers of Islamic advertisements need to apply precise screening procedures that ensure the delivery of their message through Shariah‐compliant methods.Originality/valueThe paper contributes to research through improving understanding of the main issues relating to the effect of advertising practices in Islamic societies.