Islamic finance looks to outgrow areas of controversy as it expands

London

AFTER a year of landmark deals which are opening new markets for Islamic finance, the industry is under fresh pressure to address some of its shortcomings and prove that it is not just an imitation of conventional finance.

Born in its modern form during the 1970s, Islamic finance has boomed in the past few years on the back of strong economic growth in its core markets, the Middle East and South-east Asia.

During the past 12 months, it has shown signs of going global, as even non-Muslim countries have promoted it in the hope of luring cash-rich Islamic funds.

Britain, Hong Kong an…