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The Challenge of Islamic Finance

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  • Sheng, Andrew
  • Singh, Ajit

Abstract

From its humble beginnings in the 1990s, Islamic finance has become a trillion US dollar industry. The market consensus is that Islamic finance has a bright future due to favourable demographics and rising incomes in the Muslim community. Moreover, despite voices sceptical of an accommodation between Islamic and global finance, leading global banks are buying Islamic bonds and forming subsidiaries specially to conduct Islamic finance business. Special laws have been passed in non-Muslim financial centres, - London, Singapore and Hong Kong - to facilitate the operation of Islamic banks and associated financial institutions.

Suggested Citation

  • Sheng, Andrew & Singh, Ajit, 2012. "The Challenge of Islamic Finance," MPRA Paper 53044, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:53044
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    References listed on IDEAS

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    Cited by:

    1. Singh, Ajit & Sheng, Andrew, 2011. "Islamic finance revisited: conceptual and analytical issues from the perspective of conventional economics," MPRA Paper 39007, University Library of Munich, Germany, revised 10 Apr 2012.
    2. Sheng, Andrew & Singh, Ajit, 2013. "Islamic Stock Markets in a Global Context," MPRA Paper 53035, University Library of Munich, Germany.
    3. Andrew Sheng & Ajit Singh, 2012. "Enhancing Islamic Finance: Establishing an Islamic Stock Market that Overcomes Problems of the Existing Stock Market," Working Papers wp437, Centre for Business Research, University of Cambridge.

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    More about this item

    Keywords

    Islamic Finance; Islamic bonds; global banks; financial institutions;
    All these keywords.

    JEL classification:

    • F3 - International Economics - - International Finance
    • F30 - International Economics - - International Finance - - - General
    • G2 - Financial Economics - - Financial Institutions and Services

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