A one-day faculty seminar on “Islamic Finance in the Present Era: Challenges and Prospects” was held at Allama Iqbal Open University, which was hosted by the Faculty of Arabic and Islamic Studies. The seminar was attended by the faculty members of the university apart from the people from the field of Islamic banking. This seminar was chaired by Prof. Dr. Mohiuddin Hashmi, Dean Faculty of Arabic and Islamic Studies while Dr. Ehab ElShami, Chancellor, American International Theism University Florida, USA was the guest speaker of the seminar. The speakers said that the recent global financial crisis has provided an opportunity for Islamic finance to gain a foothold in the global market. Dr. Ehab Elshami highlighted various aspects of the interest-free financial system in Islamic banking and shared his practical experiences in America. He said that the aim of Islamic banking is not just to eliminate interest, but it is a complete economic system, and the western world is taking great interest in it. Dean Faculty of Arabic and Islamic Studies, Prof. Dr. Mohiuddin Hashmi said that such activities have become indispensable for the development of Islamic finance in the country. He said this seminar aims to highlight the various aspects of Islamic banking and to set the course of action for the future. Dr. Muhyuddin Hashmi further said that to raise awareness among the people regarding various topics and issues, the Vice-Chancellor, Professor Dr. Zia Ul- Qayyum has started organizing seminars, conferences, and symposiums in the university and this faculty seminar is a part of these series.