Islamic finance is considered a modern version of the historico-religious forms of financing generated through the normative principles of Islam along with the customs of Arabia during the time when the Qur’an was revealed fourteen centuries ago. While in its historic form institutionalisation cannot be located, the practice of Islamic financing has existed in the periphery of the Muslim world since the practice was taught to his disciples by the Prophet of Islam. This un-institutional form of Islamic financing had continued to exist throughout the centuries along with the decline in Muslim economies over the centuries and as well as during the colonial era.