Plenty of interest

The preferred method of Islamic finance is leasing, as it is directly related to asset ownership. Leasing is particularly attractive given the security over assets offerred, the ability to invest in long-term assets, and the flexibility allowed for in structuring leases. Islamic leases present an opportunity to reach out to what is a largely unexplored investor base. The share of Islamic leases compared to overall investments is relatively small. Islamic leases face difficulties competing with conventional investments in terms of tenor; Islamic investments are relatively short term, with few extending over 10 years.