The Pioneer of Islamic Banking in the U.S: Dr. Yahya Abdul Rehman

Dr. Yahya is delivering Friday sermon

He always smiled, even when people harshly criticized him. He was always the first to greet others, even those he didn't know. He had a positive outlook and was never critical of anyone. On the pulpit of mosques, he was a dynamic, motivational, and inspiring speaker. In his activism, he consistently served as a public servant, even while holding numerous prominent positions in the community and business sectors.

In August 2025, he quietly bid farewell to the mortal world. He returned to his creator as a contented soul, having lived a life of service to his community and country, with the distinction of raising a family of two daughters. He knew the sayings of the Prophet Muhammad that whoever raised two daughters as true believers would be in my company.

Dr. Yahya Abdul Rahman, hopefully, is in the company of the Prophet, whom he loved more than anyone else.

Dr. Yahya was Egyptian by birth. He moved to the US in 1968, during his 57th year. He saw the civil rights movement, the wars against Afghanistan, and Iraq. On every occasion, he spoke like a statesman and led the community with courage and clear vision.

He was active in the formation of the Muslim Students Association. He actively served the Islamic Center of Southern California. There was hardly a mosque that did not invite him to deliver a sermon at Friday congregational prayers.

During the Bosnian and Kosovo crises, he brought the community together, and immediately after 9/11, he invited the interfaith community to special prayers.

He pioneered Islamic finance and banking in the US. His expertise in Islamic financing took him to several Muslim countries in the world. Lariba, a usury-free banking, was his most significant contribution to Muslim Americans. Lariba is the flagship of Islamic banking in the US. His primer on Islamic Finance is the textbook on the subject.

Dr. Abdul Rahman played a leading role in reshaping the concepts and practices of Islamic finance in the US, highlighting that interest-free banking could succeed even during times of financial crisis. He was an active participant in major global Islamic finance conferences and advisory boards. He served as a member of the original organizing group and jury of a prestigious world-class Malaysian Global Royal Award in Islamic Finance (in 2010, 2012, 2014, and 2016) to elect the best Islamic banker in the world. He contributed to the development of Islamic banking, including involvement in the launch of the Industrial Bank of Kuwait (1974-1975), American Finance House –  LARIBA in 1987, LARIBA Bank of Kazakhstan (1994), and LARIBA Bank of Whittier (1998). He was also the author of "The Art of Islamic Banking and Finance", published by Wiley in January 2010.

He spoke on RF (Riba-Free) banking and finance in the U.S., Canada, the United Kingdom, South Africa, Switzerland, Germany, Malaysia, Thailand, Singapore, Kazakhstan, India, Trinidad, Argentina, Saudi Arabia, Turkey, Lebanon, and Egypt. He actively volunteered in various capacities to support the operations of numerous communities and schools across the US and Canada.

Death is inevitable. Everything in existence except the creator will perish. Dr. Yahya was aware of this reality, and he made full use of the life and skills God had given him. Like a true faithful, he cherished every moment of his existence and tried to offer his best.

I spent several hours with him at the mosque, conventions, at his home, and in Las Vegas, where he frequently visited to give the Friday sermon.

His vision of the Muslim American community was clear and concise.

He wanted the youth to take leadership in providing the community with a positive direction to serve humanity.

The community will miss Dr. Yahya for his sincerity, dedication, and love for humanity. We are grateful to God for receiving the wisdom and services of a faithful servant that he was.

The following is an excerpt from his writing on the vision of Lariba.

"LARIBA financing is potentially in harmony with the best of American virtue and values. It offers numerous benefits for civil society and the community in a world where many are excluded from access to credit and finance.

LARIBA mortgage financing is feasible in the USA if done strategically to satisfy the laws of the Shari'aa and those of the USA.

The initial market for LARIBA mortgages is that of the LARIBA Puritans who have accumulated a sizable down payment but are unable to afford the full price. The market size is crudely estimated to be 7,500 households in the USA.

Involvement with the community at the grassroots level provides the safest way to finance and implement the "know your client" rule.

Long-term mortgages (15- or 30-year terms) may offer the buyer an easy monthly payment, but they also indirectly encourage the client to take on more debt. It is the responsibility of the LARIBA banker to help people eliminate debt, allowing them to live freely. The LARIBA model helps pay off the debt faster. It is most suitable for the American mobile society, which changes residences or refines once every 5 to 8 years.

LARIBA mortgages and financing bring real life to the Community Reinvestment Act, as stipulated by American banking regulations.

A savings program for the future generations is needed to save a sizeable down payment for the children's first home. This approach is used for savings for Hajj (pilgrimage) in Malaysia (Tabung Hajj.

LARIBA mortgage can best survive and grow under the protection and scrutiny of the American banking, monetary, and financial laws.