Matthai Kuruvila, the Religion/Spirituality Reporter for the San Francisco Chronicle had an article today about about how Islamic finance has fared well during the current credit crisis. Check out the article:
From the article:
Renouncing interest is the high-profile element of Islamic finance that relates to the current economic crisis. For Islamically correct investors, that means there are limits to how much debt a company can have or how much profit it can derive from interest-based investments. That criterion eliminated the possibility of holding stocks in financial services companies, like Citigroup or Washington Mutual, whose stocks lost 86 percent or all of their value last year, respectively.
The Islamic Index in the Dow Jones has been outperforming many non-Islamic indexes while the Amana Income and Growth Funds have also been outperforming the S&P 500. The article also touches on much of the housing crisis was avoided by those who went through Islamic financing methods.
Generally speaking, while not every Islamic Fund has been more successful than other funds, the Islamic method of investing is giving people pause and has them thinking if there just might be something to it.
But really though, check out the whole article.
Kuruvila really works with the Islamic community when he needs to write an article that deals with Islam. Because of this, his articles are always well balanced.
Just a quick note: In an email that I got that was forwarded from someone who helped him on the article, Kuruvila said that he did not write the actual headline and that the “online headline is definitely too strong an assertion.” So just keep that in mind.