Islamic banking
Yesterday British Prime Minister David Cameron unveiled plans to issue £200m in Islamic bonds, also known as sukuk. Although Britain will become the first non-Muslim country to offer sukuk, cash-strapped Western companies have increasingly turned to Islamic bonds to tap Middle Eastern investors. Richard T. de Belder explains how sukuk are structured.
Shariah-compliant investment vehicles dominate the investment scene in Saudi Arabia, especially on the retail side. Shariah-compliant public equities have consistently outperformed the broader market in recent periods.
Ibrahim Warde, a noted author on Islamic finance, argues that Islamic finance has gained much more international acceptability but that it continues to grapple with the fundamental form-versus-substance debate.