Islamic finance: A viable alternative?

Daily Mirror, Sri Lanka :A New Series on Islamic Finance Options by RAM Ratings

Throughout the world, Islamic finance (“IF”) has been charting remarkable growth over the past few years. According to Standard & Poor, the market for ‘sukuk’ (or Islamic securities) more than doubled to USD60 billion in 2007, and is expected to hit USD100 billion in the next several years. Even though this prolific growth has been tempered by the current credit crunch and global liquidity crisis, Shariah-compliant instruments are expected to eventually resume their onward march - fuelled by massive investments and financing demand from the Gulf and Asian economies.

Nonetheless, one of the major obstacles in the development of IF is lack of investor awareness and understanding on how this financial system operates. To address this, RAM Ratings has taken the initiative of publishing a series of articles on IF with the Financial Times.....CONTINUE READING