Dubai Islamic Bank has already delayed a planned issue of Shariah-compatible bonds, according to Emirati media reports. The meltdown the coronavirus pandemic has caused in other parts of the economy has prompted fears of a collapse in the sector. In projections made before the coronavirus outbreak, it predicted the sector would "continue to expand slowly" in 2020.įinancial technology, or fintech, could help the industry grow by "facilitating easier and faster transactions", it said in its Islamic Finance Outlook 2020 Edition. And it must have a positive contribution to the world," he told AFP.Īccording to the ratings agency Standard & Poor's, the Islamic finance industry has in its relatively short existence grown to be worth $2.1 trillion. "A business must have a real economic impact, not just a speculative one. Mehdi Benslimane, Global Expansion Strategist at Wahed Invest, said the guidelines in religious texts boil down to two conditions. Islamic bankers are hoping that modern platforms will open the industry up to young investors, and that its innately ethical credentials will prove to be another draw. US-based Wahed Invest, an online halal platform, uses those criteria to help tens of thousands of people invest "ethically". Earning interest is also banned as "usury". Islamic funds are banned from investing in companies associated with tobacco, alcohol, pork or gambling. The app screens US-listed stocks based on criteria issued by the Accounting and Auditing Organization for Islamic Financial Institutions, one of several bodies that set Islamic finance standards. Tesla, the American electric car pioneer, for example, is considered 96 percent Sharia compliant, according to the Zoya mobile application.
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