The promise of Islamic finance
- Published: 22 Apr 2012 at 00.00
- Newspaper section: News
As modern finance falters due to unchecked greed and usurious practices, the traditional method of banking could bring salutary benefits to the worldwide financial system, ending some of the most damaging practices and introducing a sounder approach.
Moreover, the basic tenets of Islamic finance force us to rethink the ethical basis of modern monetary arrangements With Britain now in talks to sell part of the government's 82% stake in the Royal Bank of Scotland to Abu Dhabi sovereign-wealth funds, the Islamic world's growing financial clout is once again on display. That clout also poses a systemic challenge to the dominant way that finance is now practised around the world.
From humble beginnings in the 1990s, Islamic finance has become a trillion-dollar industry. The market consensus is that Islamic finance has a bright future, owing to favourable demographics and rising incomes in Muslim communities.
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