Middle East Forum

Discussion Paper Islamic finance in Germany

According to a Discussion Paper by the Stresemann foundation, which in turn is sponsored by
Daniel Pipes and his Middle East Forum, Islamic finance has so far been largely unsuccessful, it is claimed.

Further it is outlined that the comparison with other European countries should suggest that this is not due to the specific legal framework of the country but to other reasons: First, Muslim immigrants have lower than average incomes, because of lacking formal education and low labour participation rates of Muslim women . Thus, their investment potential for financial products is rather marginal and focused on real estate in Turkey. Second, the system of Shariah scholars causes some trouble due to insufficient economic knowledge and conflicting legal opinions opines the author.

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