The future of Islamic finance

Author: | Published: 17 Nov 2008
Forum speakers (beginning top): Adam Malouf from Areit; Yavar Moini, Morgan Stanley; Debashis Dey, Clifford Chance; Mark Beer, DIFC Courts; Naveen Raza, Cru Investment Advisors; Oliver Agha, Aaoifi; Adam Key, Citigroup; Husam Hourani, Al Tamimi; Ali Bedi, The Alliance of Abbas F Ghazzawi and Hammad & Al-Mehdar; Mian Nazir, Dubai Islamic Bank; Ash Qureshi, Cleary Gottlieb Steen & Hamilton; Justin Connor, Meraas Capital

Stop imitating conventional products

Shariah-compliant instruments should be built from the roots up rather than adapt conventional products for scholarly approval. The risk of an Islamic product cannot mirror that of a conventional structure. That was the message from a panel of industry associations, in-house lawyers and private practitioners.

"A lot of problems stem from how projects are devised; they try to replicate a conventional structure. But the quantum of risk is different under shariah. We all need more shariah expertise in a transactional context," said one speaker. This...