Islamic finance

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Dubai Crash Will Test Murky Sharia Finance

Unclear how default will affect Islamic lenders, who earn no interest

(Newser) - Dubai World’s unraveling could prove a critical test for the rapidly growing Islamic finance sector, and Dubai’s murky judicial system. A significant chunk of Dubai’s debt is in the form of Sharia-compliant bonds, the New York Times explains. These increasingly popular instruments forbid lenders from collecting interest,... More »

Clerics Shake Up Islamic Finance

Concern bonds violate Sharia causes crisis despite stable market

(Newser) - Of the challenges facing Western financial markets, fear of divine intervention isn’t one. The Middle East’s booming debt market is considered one of the most stable in the world, but investors there are getting a taste of “religious interpretation risk,” Portfolio reports. Islamic scholars are declaring... More »

2 Stories