This study evaluates the capacity of Islamic finance to address the current financial problems and its ability to offer an alternative model and solutions. Specifically, one primary goal of this study is to offer a rational answer to whether Islamic finance could play a role in the global economy and serve as a valuable alternative to the conventional financial and banking systems in emerging markets like Turkey and Malaysia. This study analyzes the evolution of participation banks, also referred to as Islamic banks, in Turkey and the rationality of the political goals set by the government. The literature on the linkage between financial development and economic growth will also be evaluated. The study will finally discuss the contribution of Islamic finance in Turkey and Malaysia to economic growth.