The head of the Union of Arab Banks likes to tell stories. Fictional stories. He is the latest in a long line of Islamists who have been spreading propaganda about “Islamic finance” being immune to the impact of the current global economic downturn.

Adnan Yousef claimed in a recent speech that the global financial crisis had no impact on Islamic banking.

Regular readers of SFW may recall that we profiled Adnan Yousef back in June:

http://www.shariahfinancewatch.org/2009/06/19/adnan-yousif-the-godfather-of-global-shariah-compliant-finance/

I guess Adnan missed this report:

“Liquidity Woes Menace Islamic Banks”

http://www.shariahfinancewatch.org/2009/04/14/liquidity-woes-menace-islamic-banks/

And I am sure he overlooked this one too, since I wrote it:

“Shariah-Compliant Finance as a Safe Haven: Myth and Reality”

http://www.shariahfinancewatch.org/2009/04/23/shariah-compliant-finance-as-a-safe-haven-myth-and-reality/

But Adnan also forgot about the report that RGE Monitor put out back in May, which we chronicled on SFW:

http://www.shariahfinancewatch.org/2009/05/11/stress-testing-shariah-compliant-finance/

Adnan is also evidently ignorant of the troubles in the sukuk, or Islamic bond, market:

“Defaults Pose Latest Snag in Islamic Bond Market”

http://www.shariahfinancewatch.org/2009/06/18/defaults-pose-latest-snag-in-islamic-bond-market/

“Sukuk defaults expose pitfall in Shariah-Compliant Finance”

http://www.shariahfinancewatch.org/2009/07/16/sukuk-defaults-expose-pitfall-in-shariah-compliant-finance/

Things got so bad in “Islamic” markets back in March, that Dubai actually floated conventional bonds…

http://www.shariahfinancewatch.org/2009/03/10/islamic-markets-tumble-dubai-floats-conventional-bond/

At that same time, Qatar had to bail out its Islamic banking system:

http://www.shariahfinancewatch.org/2009/03/10/qatar-to-prop-up-its-banking-system/

Bahrain Islamic Bank posted a loss in Q2:

http://www.shariahfinancewatch.org/2009/07/15/bahrain-islamic-bank-posts-loss/

In fact, Islamic bank earnings have been impacted in other places as well, but the state-controlled press in Islamic nations go to great lengths to conceal the facts:

http://www.shariahfinancewatch.org/2009/08/14/more-spin-on-islamic-bank-earnings/

The evidence is overwhelming: Shariah-Compliant Finance is in no way immune to the market forces which have created the global economic downturn and Shariah-Compliant Finance should not be regarded as any kind of safe haven at all.

Those who claim that Shariah Finance is in fact a safe haven are LYING.

http://www.ameinfo.com/208518.html

 

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