On Thu, Oct 8, 2009 at 1:24 PM, <[email protected]> wrote: > Kiran, > Apologies for the top post (blame it on blackberry). > I am assuming as one of the target population, I found this an intersting > develpment. I have to admit that I came across a report on Forrester on > islamic banking, I am gald that kerala gov has taken the initiative for > right or wrong reasons. Co-existance of islamic ( this definition is gray > area) with normal banking exists in some european countries, I believe there > is even a few operating in US (according to report). As for me, I would > possibly wait and see :) >
Islamic finance has been booming through the recession. This merely another form of it. I don't think the article discusses how many of these instruments are different from traditional bonds etc. There will be no interest payments since these are banned by Shari'a. The investment in infrastructure gives the investor a stake in the earnings from that piece of infrastructure (a highway, a crane etc.) and from those earnings they are paid off and make profits. I think this is long overdue.
