Islamic private equity onthe rise, hurdles remain

Demand for Islamic private equity in Gulf Arab states is on the rise among investors who value its more prudent debt approach and its flexibility in structuring deals, even though the sector faces hurdles in the form of a shortage of qualified professionals and restrictions in its investments options.
As private equity activity is picking up again after it came to a virtual standstill during the financial crisis, Shariah-compliant private equity in particular is emerging as a popular investment tool among regional investors.