(RNS) A global Islamic bank, in which no interest is paid or charged on deposits and loans, will open next year, a group of investors announced June 22.

The proposed $1 billion bank, which will be called the Emaar International Group, will adhere to Muslim law and bring together investors from a number of countries.

The bank's headquarters will either be in Malaysia, Bahrain, Qatar or Dubai, Saleh A. Kamal, chairman of the General Council for Islamic Banks and Financial Institutions, said.

According to Kamal, many Islamic banks that currently exist are undercapitalized and in dire financial straits.

Addressing financial needs and adhering to Islamic laws governing finance are two reasons for launching the new bank, but a third reason organizers cited was using a 10-year financial services master plan to encourage development in the Muslim world.