February 17, 2010 / 1:51 PM / 10 years ago

Private equity boom seen for Islamic finance

Harris Irfan, Head of Islamic Products at Barclays Capital, speaks during the Reuters Islamic Banking Summit in the Reuters offices in Dubai February 17, 2010. REUTERS/Jumana ElHeloueh

DUBAI (Reuters) - Private equity will be a key growth engine for the Islamic finance industry, but fund managers need to better understand Sharia concepts before a market can develop, a top banker said on Wednesday.

Like most parts of the world, the private equity market in the Middle East came to a standstill in 2009 as liquidity conditions and deal opportunities dried up.

“Private equity is going to be a big boom area,” said Harris Irfan, head of Islamic Products at Barclays Capital, speaking at the Reuters Islamic Banking and Finance Summit.

“The capabilities of producing sharia- compliant private equity funds are actually very limited in the market despite the fact that people talk about private equity and Islamic finance as a natural fit.”

Irfan said he hopes to see private equity fund managers get comfortable with sharia concepts to create a space for such funds to operate in.

“The reality is executing a sharia-compliant private equity fund is very different from visualizing it.”

State-owned Abu Dhabi Invest AD said in October it was planning an Islamic private equity fund.

Reporting by Rachna Uppal, Nicolas Parasie, Shaheen Pasha, Amran Abocar; Editing by Rupert Winchester

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below