The Shari’ah alternative
The world’s largest financial services firms are realizing that Muslims would increasingly like to invest through Islamic funds. These are growing in number but have had a rough ride in the global bear market since many of them were heavily invested in technology stocks.
MODERN ISLAMIC FINANCE has developed rapidly since its inception in the 1970s. Most of the advances have been in banking, however, and Islamic asset management, which only started to take off in the mid-1990s, remains relatively underdeveloped. Substantial hurdles still inhibit growth but nearly everyone in the market is convinced that it will soon come into its own.
Industry sources estimate that there is $100 billion to $150 billion invested in a Shari'ah (Islamic law)-compliant fashion. This relatively small figure highlights the potential.