Islamic finance raises interest

U.S. companies doing business globally, particularly in countries with large Muslim populations, are turning to Islamic finance as an alternative source of funding for everything from trade finance to equipment leasing. Although Islamic banks do not operate yet in the United States, due to restrictive banking legislation here, the number of U.S.-based Islamic financial-service providers is growing-from home finance companies and asset managers to leasing companies. Multinationals such as General Motors, IBM and Xerox have raised money through a U.S.-based Islamic leasing fund set up by the United Bank of Kuwait, while international oil giants Enron and Shell have used Islamic banks to finance their activities in the Arabian Gulf and Malaysia. There is serious growth in the number of institutions and products available in the Islamic finance sector. This growth is leading to competition, which many feel will push for better service and better Islamic banking products. Companies may