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Article: Funding the construction boom: with global credit markets contracting, regional Islamic banks are filling the financing gap for the Gulfs major developments left by shrinking traditional funding sources.(PROJECT FINANCE)
- Article from:
- MEED Middle East Economic Digest
- Article date:
- September 12, 2008
- Author:
CopyrightCOPYRIGHT 2008 MEED Middle East Economic Digest. All Rights Reserved. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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As an abundance of real estate, petrochemicals and refining developments are launched in the Middle East, the region's top Islamic banks are gaining experience of taking on long-term project risk. With that comes a growing confidence in the use of complex structures that combine sharia-compliant and conventional products to finance capital investment.
Although large, long-term exposures are beyond the reach of many Islamic financial institutions, a clutch of top names do now have the expertise to handle them. "Kuwait Finance House (KFH) and Dubai Islamic bank are the main names in the field, although the latter is more Gulf-based whereas KFH is more ...