Shariah Compliant Funds Could Boost Brazilian Development
Maalouf Ashford & Talbot
The sixth-largest global economy, Brazil represents a very real opportunity for Islamic finance to spread its wings in a hitherto relatively untapped region, while Shariah compliant finance offers Brazil an exciting source of funding to boost development. Alexandre Lopes discusses the opportunities and challenges involved.
Known for its profit and loss sharing principle, Islamic finance seems to be expanding the global footprint of its funds to countries outside its original market in the Middle East. As this US$1.3 trillion industry sets sail, an untapped huge market in South America is likely to cross its path.
Shariah compliant investors in particular should look to the wealth of opportunities in Brazil: the sixth largest economy in the world, the world’s second-biggest emerging market economy and a member of the BRIC group (fast-growing developing economies) and one of the top 10 countries for foreign investments. On the other side of the coin, Brazil’s development thirst may find some relief in this growing industry.