Search:

World Economics

 Back to Previous Page
Title: Trends and Challenges in Islamic Finance
Author: Heiko Hesse, Andreas (Andy) Jobst & Juan Solé
Published: June 2008
Pages: 175-193
   Download Paper
The paper first discusses the current trends in Islamic finance, which has become mainstream with currently more than US$800 billion of assets worldwide and a buoyant market for sukuk bonds. However, this exorbitant growth raises many challenges, particularly in the areas of banking, capital markets and regulation. Thus, the paper then considers these challenges, notably the economic and legal bottlenecks of sukuk, banking-specific issues, such as liquidity risk management and business models, as well as disharmonized financial regulation. Despite the challenges, the paper concludes that the Islamic finance industry has a bright future.


Download Paper in PDF format