Despite proving more resilient to the financial crisis than conventional markets, Islamic finance is struggling to reach its full potential, a conference has heard.
Experts gathered in Lucerne last week agreed that much work still has to be done to bridge the gap between the fledgling Islamic financial sector and Western markets. One Swiss expert said the terms Islamic and sharia were hindering the process.
Until recently, there did not appear to be a particularly compelling case for Islamic banking and insurance services for non-Muslim clients. But the out-performance of Islamic products against conventional markets during the financial crash has generated more interest.