Words of Wisdom - the Editor

Peace.
Got busy with a new project. So couldn’t add more news. Although I came across a fine article by a brother on the history and future of Islamic Banking. I was surprised to know that Islamic banking had beginnings in 1975. Wow. That’s almost as early as my birth. And I guess if there are enough like minded people any idea is bound to grow. I too used to wonder if I can invest without plunging into interest based transactions.

UK I noticed is taking some fine initiatives to promote Shariah Finance. Also came across a western brother or atleast who calls Muslims his brothers and sisters but laughs cynically at the DOW Islamic index as 'bending backwards' to accommodate those guys who have four wives and cut of peoples hands. O well some people just don't get it, do they?

Tuesday, November 11, 2008

Sector to grow by up to 25% annually despite crisis

The Islamic banking system will continue to grow by between 20 and 25 per cent annually worldwide in the long term despite the financial crisis, says Rushdi Siddiqui, Global Director of Dow Jones Islamic Market Indexes.
He said the current slowdown in Islamic banking would continue in the short term but the sector would soon pick up momentum. It would attract conventional investors by presenting itself as a holistic financing and investment solution.

But he said the drop in oil prices would have an impact on Islamic banks in the short-to-medium term.

"There is a lesson from the decline in oil prices," Siddiqui told Emirates Business. "Islamic banks should diversify their investments to generate revenues from different areas. They must use petro-liquidity to create new investments rather than focusing on deposits and retail businesses."

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