The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookiesbefore using this site. Please see our Subscription Terms and Conditions.

All material subject to strictly enforced copyright laws. © 2022 Euromoney, a part of the Euromoney Institutional Investor PLC.

Islamic finance moves into the mainstream

Financial engineering for ethical investors

Hyundai, Citibank and Bechtel: Citi's global Islamic products group has
done deals for Hyundai's UK based trading arm and Bechtel's civil
engineering projects in Turkey

Islamic finance is slowly proving that it is competitive with the mainstream sector. In Malaysia, issuance of Islamic private debt securities has risen from 1.1% of the local debt market in 1992 to 42% in 2001. Companies controlled by non-Muslims account for about 30% of the volume of Islamic private-debt securities issued in Malaysia. Many of the largest domestic debt issuers use Islamic structures because they give them access to the liquidity of large Islamic institutional investors, such as Tabung Haji, the pilgrimage savers' fund, in addition to that of conventional investors.

In Saudi Arabia anecdotal evidence suggests that in the domestic market more new money is flowing into Islamic products than into conventional ones. The Islamic banking operations of one Saudi bank, National Commercial Bank, look set to eclipse its parent.

Opportunities in Islamic finance are not confined to markets with large Muslim populations such as the Middle East, Malaysia, Indonesia, and Pakistan.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.


Unlimited access to and

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually


Unlimited access to and, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors


Already a user?