Islamic Sharia to dominate Gulf project finance

Islamic finance could soon wrest control of the $50 billion Gulf Arab project finance market, aided by government inducements and investors looking for alternatives to conventional funding, industry officials said.

Conventional financing now dominates the Gulf Arab market which accounted for almost $1 in every $3 raised for project financing last year, according to HSBC Holding.

But banks such as HSBC and Deutsche Bank are expanding their Islamic finance operations and Gulf Arab investors are setting up new Islamic banks to cope with the expected surge in demand for Islamic project finance.

Via Arabian Business and Gulf Times.