I had the opportunity to translate technical documents for both conventional and sharia financial products a few years ago, and I find the market fascination of them mind-boggling.
These products seemed to incorporate convoluted jargon and concepts which dramatically increased complexity but at the same time, produced no extra utility for end-users.
On top of that, the addition of ongoing shariah-compliance introduced a level of uncertainty that was simply not there in conventional finance. If the building you constructed ended up being used as a cinema, then the shariah debt you used to finance that building needs to either be restructured or unraveled. Why on board such a risk?
Even as a muslim myself, I feel like sharia finance is a step backwards.
These products seemed to incorporate convoluted jargon and concepts which dramatically increased complexity but at the same time, produced no extra utility for end-users.
On top of that, the addition of ongoing shariah-compliance introduced a level of uncertainty that was simply not there in conventional finance. If the building you constructed ended up being used as a cinema, then the shariah debt you used to finance that building needs to either be restructured or unraveled. Why on board such a risk?
Even as a muslim myself, I feel like sharia finance is a step backwards.