The Risky Business Of Islamic Finance
Islamofascism: Shariah banking has come into vogue in the West, as even cash-strapped U.S. banks try to attract free-flowing Arab petrodollars. But it poses major risks. Wall Street beware.

Investor's Business Daily
February 27, 2008

http://www.islamist-watch.org/283/the-risky-business-of-islamic-finance

Excerpt:

With oil prices hovering around $100 a barrel, more than $1 trillion in petrodollars are now available annually for global investment. And major U.S. financial institutions, hit hard by the credit crunch, are hungrily eyeing them.

Citibank and Goldman Sachs, for example, are creating investment vehicles that cater to Muslim investors in order to grab some of the billions in management fees in the offing. These products include Shariah-compliant bonds, mutual funds, mortgages, insurance, hedge funds and soon REITs.

Dow Jones Corp. has even created its own index for Islamic-correct investments: the Dow Jones Islamic Index.

While the $800 billion global Shariah market is relatively small, it's growing at a 15% clip, thanks to the oil boom and a resurgence in Islamic fundamentalism, according to the Center for Security Policy. And it's expected to more than double over the next 10 years.

What's the fuss? Money is money, right? Not in this case.

Read the complete original version of this item...

Related Topics:  Banking receive the latest by email: subscribe to the free islamist watch mailing list