| Islamic banking only makes up one per cent of mainstream finance, but it takes up more than its fair share of newspaper column inches. Perhaps this shouldn’t be surprising since the industry has considerable growth potential: high oil prices and a post-Arab Spring resurgence of political Islam in North Africa will help swell balance sheets, and Islamic banks in the UK report increasing interest from non-Muslims in their services too.
But more importantly, at a time when the weaknesses of mainstream finance have never been more exposed, Islamic finance offers a thoughtful alternative. Islamic prohibitions on the charging of interest are not coincidental — both Christian and Jewish scriptures contain similar provisions — and the emphasis instead on profit-sharing structures is intended to offer a fairer system...............................................Full Article: Source
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