Islamic Banking Systems Growing and Spreading to Europe
Mainstream investment banks are pitching into the increasingly popular and profitable business of Sharia-compliant financial services, and the trend is moving to Europe. The industry has experienced annual growth of about 35 percent since the early 1990s. The consistent growth is due to the booming economy of oil-exporting states and increasing trust in structures that are both Sharia-compliant and tax efficient. Under Sharia law, for example, there is no distinction between acceptable and unacceptable interest. Investors can therefore find venues in which to avoid paying interest.
The main clientele for Sharia-compliant financing systems are individual investor families, says Jawad Ali, partner at King & Spalding law firm.
