June 8, 2013

Islamic finance

In some circles, Islamic finance - or, better put, Sharia Compliant Finance, is all the rage. But for those who dig a little deeper, a lot of questions can be asked about the current state of affairs when it comes to 'Sharia compliant finance'.  As the expert Ajaz Ahmed Khan says: "Islamic finance is, generally speaking, approaching a crossroads and we have to ask ourselves which direction we will now take. It has been developed for a number of years now and it has become more and more widespread but a lot of the institutions that have adopted Islamic
finance are now essentially doing an exercise in financial engineering. They look at which exact religious rules they have to obey and think that, within these rules, they can come up with anything. So they’re not really changing their philosophy and way of doing business, they’re just changing the instruments."

You can read the full interview on Islamic finance here.

No comments:

Post a Comment