Christine Benlafquih's Blog

Posted by Christine Benlafquih May 12, 2009

While many financial giants are still not sure how intact they'll be after the global recession, there's brighter news for Islamic banks and financial institutions. Credit rating agency Standard & Poor's has indicated that the Islamic finance market is already beginning to rebound from 2008 setbacks.

According to a May 12, 2009 Associated Press report published on Forbes.com, "Islamic banks sustained losses linked to the current meltdown, but they were more insulated than other institutions because of Islam's ban on handling interest-bearing financial instruments."

The Islamic practice of avoiding interest and usury (riba) stems from revelations in the Qur'an. Observant Muslims already know there's wisdom in divinely enjoined commands like the ban on interest, but it's nice when evidence emerges which supports such "dated" notions.

A number of Islamic financial institutions have sprung up in recent years in response to a growing market segment which wishes to comply with Islamic law. The current Islamic financial market is valued at around $700 billion.