Islamic finance awards
Dubais difficulties, the fundamental problems
facing Islamic finance have become
BANKERS INVOLVED IN
Islamic finance have become a more subdued bunch of late. After
the sub-prime crisis they bragged about how the Shariah ban on
interest and other Islamic prohibitions had shielded their
businesses from toxic structured debt securities.
Then Lehman Brothers
collapsed, bringing property and stock prices crashing down
across the Middle East at the same time as a crunch in
short-term liquidity throughout the Gulf. The culmination was
the Dubai World debt standstill announcement in late 2009.
Since then, the fundamental problems facing Islamic finance
have been more evident than ever before. Far from being a safe
haven, Islamic finance has been shown to have all the
characteristics of a truly volatile frontier market.
"Its been a tough year for everyone. After the gold
rush of the mid-2000s, the industry as...