Supporters of Islamic finance say that its model of risk- and profit-sharing is less vulnerable to the problems associated with Western finance, as demonstrated by the current crisis, but the response to our web poll last week suggests that our readers disagree.
More than two-fifths of those who voted in the poll said that the reputation of Islamic finance had been damaged by the financial crisis. One of the biggest question marks hanging over Islamic transactions is how they will hold up in distressed situations. Nakheel, a Dubai property developer owned by Dubai World, is in talks with creditors at the moment to try to restructure its $980 million sukuk, which is due on...
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