View all newsletters
Have the short, sharp Spear's newsletter delivered to your inbox each week
  1. Wealth
May 13, 2009

$1tr Islamic world debt starts to look shaky

By Spear's

Banking systems in the Muslim world may be heading for testing times, amid growing concerns over the fundamental stability of Islamic finance, a marketplace estimated to be worth up to $1 trillion in outstanding debt.

Banking systems in the Muslim world may be heading for testing times, amid growing concerns over the fundamental stability of Islamic finance, a marketplace estimated to be worth up to $1 trillion in outstanding debt.

At worst, wealthy investors in the Gulf and Asia may flee to the relative safety of Western banks if this Sharia-based market collapses in a wave of debt defaults, bankers in London say.

In one indicator of looming problems, Investment Dar Co, the owner of half of Aston Martin Lagonda, has missed a payment on $100 million of debt, becoming the first Arabian Gulf company to default on Islamic bonds.

Kuwait-based Investment Dar failed to pay a regular distribution due on April 27 to holders of its Islamic bonds maturing in 2010, it said in a statement. The company, which has $3.7 billion of debt outstanding, recently announced that it was looking to restructure its various interests, ranging from real estate to banking, with the help of Credit Suisse.

For further details, visit thewealthnet

Content from our partners
How the Thuso Group’s invaluable experience and expertise shaped the Spear’s Schools Index 2024
AP Executive: Your Trusted Global Partner in Wealth Management Recruitment
A League of Their Own

Select and enter your email address The short, sharp email newsletter from Spear’s
  • Business owner/co-owner
  • CEO
  • COO
  • CFO
  • CTO
  • Chairperson
  • Non-Exec Director
  • Other C-Suite
  • Managing Director
  • President/Partner
  • Senior Executive/SVP or Corporate VP or equivalent
  • Director or equivalent
  • Group or Senior Manager
  • Head of Department/Function
  • Manager
  • Non-manager
  • Retired
  • Other
Visit our privacy policy for more information about our services, how New Statesman Media Group may use, process and share your personal data, including information on your rights in respect of your personal data and how you can unsubscribe from future marketing communications.
Thank you

Thanks for subscribing.

Websites in our network