Tag: Global Finance

Islamic finance has made much progress over the past two decades across banking, asset management and capital markets. There are now some $5tn of Islamic finance assets in an industry grounded in faith-based principles, according to estimates from the LSEG’s Islamic Finance Development Indicator. But Islamic finance — and in particular equity investing — needs further conversation about how to balance ethical integrity with the financial complexity of today’s world…

The global sukuk market for Islamic finance faces a pivotal moment. A new framework from the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) threatens to destabilise a $1tn market that has become a vital funding source for sovereigns and corporates across the Middle East, Asia and beyond. The spiritual imperative behind proposed changes to AAOIFI’s Shariah Standard 62 is deeply respected. They seek to make sukuk debt appear less like debt with charged interest, something that is prohibited under Islamic law. However, the real-world effects could fracture a market that has flourished precisely because of its consistency and investor confidence. The stakes for global Islamic finance could not be higher…