IslamicFinance.de

Robin Wigglesworth reported in the Financial Times that although, the Islamic finance industry may have breached the USD 1,000 billion mark in assets, difficulties arise, in spite of claims that the industry’s model is inherently more robust than conventional finance.

Islamic financial institutions have proven equally susceptible to a global economic downturn and property correction as their larger conventional peers. Dubai has been an active issuer of Islamic bonds, known as sukuk, and the exposure of Islamic banks to the emirate’s debt pile has caused the cost of financing to rise greatly during the past two weeks and triggered a rash of credit agency downgrades