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Forbes Special Report on Islamic Finance

In April, Forbes reported that at least $500 billion in global assets are managed in accordance with Sharia (Islamic) law, with sustained annual growth of 10-plus percent. While bank stocks and the banking industry are being treated as “toxic” in the U.S. (and parts of Europe) due to the massive writedowns and uncertainty of what else may remain on the books, Islamic finance is booming! Many of the sources of distress for “western” banks would have largely been avoided per inherent Sharia limitations. Interestingly enough, Middle Eastern wealth is helping to shore up the capital bases of some of the most prominent western banks and eventually may result in handsome returns.