ABSTRACT : The number of Islamic Financial Institutions now makes competitiveness to get as many customersas possible. This is certainly related to business ethics that must be in line with islamic teachings. The aim is toexplain the strategy in increasing competitive advantage in BMT al Mabruk Batusangkar and to explain howIslamic business ethics view the implementation of strategies in BMT al Mabruk Batusangkar. This type ofresearch is field research with qualitative descriptive methods, with data collection techniques that useinterviews. The results obtained through competitive advantage are (1) cost advantage, (2) using differentiationstrategies, (3) the focus strategy of BMT al Mabruk Batusangkar, (4) involved in community social activities.While the application of business ethics is carried out in every transaction in BMT al Mabruk Batusangkar.
Keywords : Competitive advantage, Islamic business ethics