Category: Islamic finance

A suk-er born every minute?

11 May, 2010 (11:02) | Bankruptcy, Capital markets, Dubai, Global news, Islamic finance, Speculation |

By: David A. Smith   Sharia-compliant finance is not broken, but it is dented, says the Economist, in this interesting little expose of the cracks in jurisprudence that arise when a new capital form is put to the test.   Nothing to worry about … is it?   There was a time when proponents of […]

Dubai World: flinching or maturing?

15 December, 2009 (10:10) | Bankruptcy, Dubai, Global news, Islamic finance, Recapitalization, Speculation |

By: David A. Smith   Perhaps motivated by AHI’s thorough five-part post demonstrating its serious repercussions, the government of Abu Dhabi announced on Monday that it would be injecting $10 billion into Dubai to fund Dubai World’s upcoming sukuk (Islamic bond) payment and to provide working capital for Dubai World through next April.  In doing […]

Sovereign bankruptcy: Part 5, whither Islamic finance?

11 December, 2009 (10:50) | Dubai, Global news, Islamic finance, Speculation |

 By: David A. Smith   [Continued from yesterday’s Part 4 and the preceding Part 1, Part 2, and Part 3.]   This multi-part post covers the upcoming sovereign bankruptcy of Dubai World, a shock of the first magnitude whose consequences that will reverberate for years if not decades.   Part 1 deals with the Dubai double […]

Sovereign bankruptcy: Part 4, the invention of bankruptcy

10 December, 2009 (10:38) | Dubai, Global news, Islamic finance, Speculation |

By: David A. Smith   [Continued from yesterday’s Part 3 and the preceding Part 1 and Part 2.]   As I’ve covered so far, the Dubai World default announcement is a megashock to the global capital markets, particularly Islamic ones, for it thrusts Dubai and all of Islamic finance into a realm of uncertainty.  A nation that lacks […]

Sovereign bankruptcy: Part 3, the watershed moment

9 December, 2009 (10:59) | Dubai, Global news, Islamic finance, Speculation |

By: David A. Smith   [Continued from yesterday’s Part 2 and the preceding Part 1.]   Following on the Dubai World default notice, as reported in the New York Times, so far I’ve contrasted the proposed leniency that the government of Dubai expects of its creditors, and the inflexible severity it has shown individual debtors […]