A major announcement in Islamic finance has been sidelined by a sharp turn in market conditions. Guidelines by industry regulators now define gold-use standards for Shariah-compliant banks and asset managers. The news may lead to broad-based recalibration of the gold market; China and India traditionally exert a dominant influence. But that notion is on hold, … Continue reading Muslims Mourn Gold Price
We argue that much of the campaign rhetoric about American Muslims will subside to a political murmur. Trump now has an exhaustive plate of responsibilities that were never part of the election process. Expect his so-called Muslim policy to be promptly delegated to his homeland security team, potentially led by Rudy Giuliani. The former New … Continue reading What Next for American Muslims?
Tiny Malta has long flirted with Islamic finance to put it more firmly on the map as an offshore banking center. Ironically, the country may have now identified an ideal project for a sukuk—sometimes called an Islamic bond—at a time when it may not need Middle East capital. The tunnel between the islands of Malta … Continue reading Islamic Finance Falters on Global Stage
The financial services industry is bereft of sukuk-issuance news this year, reflecting sober demand for so-called Islamic bonds from institutions based in the Islamic world. Yet we expect to see greater enthusiasm for the asset class among local and regional investors. Consider the worldwide scramble for yield and the attendant focus on infrastructure investments. With … Continue reading Hunt for Yield Jolts Sukuk Market
While France battles the burkini on its beaches, the halal fashion industry benefits from an unexpected boost. The Australia-based company that helped to pioneer the swimsuit style claims that sales are skyrocketing. It seems that French authorities have unwittingly created widespread awareness of the burkini among consumers at a time of peak seasonal demand in … Continue reading Entrepreneurs Score With Burkini Effect
Riyadh has a new entertainment complex: Snow City. How about a family outing at the ice rink? For a city of four million that sees an average July temperature near 36°C (96°F), the potential is self-evident. The spend is much less than a winter holiday in Les Trois Vallées. This private-sector initiative emphasizes steps to … Continue reading Saudi Arabia Braces for Winter Weather
Expressing religious affinity in the marketplace is seldom controversial, regardless of faith orientation. But percolating disposable income across the Islamic world is lending support to curious forms of commercialization, including halal cat food and halal house paint. Our interpretation is far more benign than rising fundamentalism. Rather, manufacturers are trying to use halal certification to … Continue reading Retail Sales Reinvented in Islamic World
The need to rationalize capacity in the Islamic finance industry is likely to be one side effect of a more deliberate economic setting worldwide. In particular, we expect to see further dislocations in the sukuk business, as issuance falters. That outlook contrasts with the industry-centric view that the asset class will grow continuously. We focus … Continue reading Islamic Bankers Recalibrate Expectations
Here is an unseemly question: "What if no one wants to buy Saudi Aramco stock?" Riyadh’s high-stakes restructuring strategy is largely dependent on a successful IPO for the oil giant. Yet the rigorously-crafted master plan could be derailed by dour investors. Index managers will have to buy the stock; active managers may be content with … Continue reading Saudi Privatization Could Go Awry
In the West, the complexity and texture of the Islamic world is commonly misunderstood. Consider recent findings by the Pew Research Center. Their study shows that those who live in Muslim-majority countries have vastly different views on the role of the Quran in national jurisprudence. In Pakistan, 78% of the population believes that laws should … Continue reading Islamic World Split on Role of Quran
