Shariah
Companies may Resist Crisis

Islamic financial and insurance
companies in the Gulf are more resistant to the global financial
crisis than their “conventional” counterparts because Shariah law
prohibits interest-based financial products, Standard & Poor’s said.
“Islamic financial institutions didn’t invest in the structured
products that have hampered many conventional banks’ financial
profiles and performance,” Mohamed Damak, credit analyst at S&P in
Paris, wrote in a statement released on Saturday.
Most Islamic financial companies “should be equipped to weather the
financial downturn.”
Takaful companies, which operate on the basis of mutual support or
solidarity among Muslims to provide insurance, will be resilient to
worsening credit markets because they have “sufficient liquidity
flows” and capital, the report said
Source:Bloomberg
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