IslamicFinance.de

Dear Reader,

Just reading an article how much the UAE economy needs the small and medium sized companies and how much difficulties they face to be financed by banks:

http://www.business24-7.ae/articles/2009/4/pages/26042009/04272009_46940...

One issue I missed in this article:

Not a word mentions the role of cooperative / mutual banks or the saving & loans; both financial institutions, which are non profit by its bylaws but dedicated to their members or region. This sector has about 50 % of the total banks balance sheet in my home country Germany, where small and medium sized companies are the backbone of the economy.

So, what is missing in the GCC desperately is setting up cooperative banks and regional saving banks - both can be done Islamically.