Islamic banking: gaining traction in ME | beyondbrics – FT.com

The Middle East may be the heart of Islam and its investors may have plenty of liquidity, but the region’sIslamic banking sector remains relatively immature and undeveloped compared to markets in Muslim south Asia.

But although the recent turmoil in the Middle East has certainly done the local Islamic finance industry no favours, new financial products and regulations are appearing across the region, helping the sector mature both in core Gulf countries and those such as Jordan and Oman that have so far had have limited sharia-compliant options.

Most recently, the Sultanate of Oman on Tuesday issued a royal decree allowing the establishment of the first Islamic banks in the country.