Deutsche Bank looks to Islamist market

1 February 2007

Deutsche Bank has released a white paper detailing a model investment structure for Shariah-compliant securities.

The move is aimed at tackling the problem of shortages within the Shariah-compliant investment market and the bank hopes the model will be adopted by other financial institutions.

The managing director and regional head of ME structuring at Deutsche Bank, Geert Bossuyt, was optimistic that the model would prove to be a "significant milestone" towards opening up new asset classes to the Islamic finance industry and realizing the full potential of the sector.

Mr Bossuyt said: "Shariah itself has inherent flexibility and fewer constraints than is often assumed by the financial industry."

Companies can benefit from adopting Shariah-compliant investment structures, as they will be "recognized for their hard work and ideas", he explained.

The initiative taken by Deutsche Bank is part of a general effort aimed at seeing Shariah-compliant securities grow off a solid and uniform base.

In the UK last year, the Financial Services Authority stated to the Muslim Council of Britain's Islamic Finance and Trade Conference that the regulator was "determined" to continue the development of Islamic finance products in the UK.

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