This chapter offers a literature review discussing the origin, history, and the growth of Islamic Banking, especially in the GCC countries. It provides detailed information regarding how Islamic Banking evolved throughout the years and what are the current Islamic financial products. Another interesting topic covered in this literature review is the performance comparison of Islamic and conventional banks during different time periods. Accordingly, the chapter explores how the financial standing of Islamic banks altered in comparison to conventional banks before and after the financial crisis of 2008 by presenting earlier studies from various countries. It is concluded that some potential challenges and future opportunities of the Islamic Banking are yet to be explored.