Islamic finance yet to move out of crisis

The fledgling Islamic finance industry is still growing thanks to new markets and an inflow of oil money.
  • Language
  • App
  • Subscriptions
  • Specials
  • Sign-In
  • Register
GeStepAhead master your money Realasset
moneycontrol.com

Home » News » World News

Feb 15, 2010, 02.39 PM | Source: Reuters

Islamic finance yet to move out of crisis

The fledgling Islamic finance industry is still growing thanks to new markets and an inflow of oil money.

Like this story, share it with millions of investors on M3

Islamic finance yet to move out of crisis

The fledgling Islamic finance industry is still growing thanks to new markets and an inflow of oil money.

Post Your Comments

Share Cancel

Islamic finance yet to move out of crisis
The fledgling Islamic finance industry is still growing thanks to new markets and an inflow of oil money, but it is struggling to leave behind the legacy of the global financial crisis in the form of a real estate crash in the Gulf Arab region.

Islamic banking is one of the world's fastest growing financial sectors, according to industry estimates. It has attracted more attention in the aftermath of the global financial crisis as investors are increasingly looking for alternative, ethical ways of investing.

But in the Gulf Arab region, alongside South East Asia its most important regional centre, a funding crunch at Bahrain-based Islamic investment house Gulf Finance House shows that the industry still has a long way to go to diversify from real estate products and investments.

"We have the same state of affairs across the region whether the companies are listed or unlisted", said Mohieddine Kronfol, managing director at Dubai-based Algebra Capital.

"This situation is very common whereby companies have gone out to get short-term funding but then put it into illiquid assets (such as real estate)," he said.

Asset management is seen as a key growth area for the industry, but experts say it needs to diversify its products by adding fixed-income components to its funds that are focused on real estate and private equity.

Next week, Reuters journalists in London, Dubai, Bahrain, Geneva, Kuala Lumpur and Jakarta will bring together the industry's decision makers to ask them how they will overcome these challenges and where opportunities lie.

Interviewees at the Reuters Islamic Banking and Finance Summit include some 40 bankers and lawyers.

_

1 2

Ads by Google

Buy, Hold, Sell ? Hear it first on M3
Islamic finance yet to move out of crisis

See all

Get started using your favorite social network

or

Login using moneycontrol ID

Username
Password

Need help logging in? Reset password.

Don´t have an account? Sign Up

Get started using your favorite social network

or

Simply sign up using this short form

* mandatory

UserName*

Username should be atleast 4 character

Password*

Password should be 8 or more characters,
atleast 1 number, 1 symbol & 1 upper case letter

Alert

Your Password should contain
  • 8 or more characters
  • At least 1 number
  • At least 1 symbol
  • At least 1 upper case letter
Confirm Password*
Email
Already have an account? Login