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Thursday, August 28, 2008

Islamic finance

My Research magazine article on "The Rise of Islamic Finance" is now available online. Excerpt:
Islamic finance is a fast-growing sector that seeks to conduct financial practices in accordance with sharia, or Islamic law. It is a field that has gained considerable enthusiasm among Western financial institutions, as well as in the Islamic world. And it is an area that financial advisors and their institutions increasingly will have to grapple with, as it holds both significant attractions and worrisome quandaries.
Islamic finance carries a demonstrated ability and vast potential to attract an important client base — primarily Muslims, including the Muslim-American community, but also non-Muslims who are interested in an alternative approach to socially responsible investing. But Islamic finance also is increasingly controversial, as critics raise questions about the field’s legal, regulatory, political and ethical ramifications.

1 comment:

Ron Robins said...

You have crystallized the situation concerning Islamic finance well.

I believe that Islamic finance will only succeed if those forces behind it are 'moderate.' Since most Muslims are not radicals, Islamic finance will shun the extremists and continue to flourish. It will become a welcome part of the global trend to ethical investing.

If everyone does invest according to their personal values, then, since so many of core values are alike — and are supportive of higher ideals — that in the long run, only companies employing these higher values will truly prosper. And there is real evidence of this now.

I’ve been following ethical investing for about forty years. For anyone interested I have a site that covers the latest global news and research on the subject. It’s at www.investingforthesoul.com

Best wishes, Ron Robins