LONDON (Reuters) - European Islamic Investment Bank, which offers Sharia-compliant financial products, plans to raise up to $600 million (300 million pounds) of funds to tap the thriving niche market driven by rising petrodollar wealth.
Industry watchers estimate the total liquid assets of high-net-worth Muslim individuals, with financial assets over $1 million, are worth more than $700 billion, and will grow at roughly 10 percent a year for the next few years.
However, financial institutions need to make extra efforts to structure products that comply with Sharia, the Islamic legal code that prohibits interest payments, speculation on future risks and investments in sectors such as alcohol or weapons.
To meet the strong demand among high net worth private client needs in the Middle East, Asia and Europe, EIIB is launching five different funds to raise as much as $600 million.
Full Reuters article.