The politics of Islamic finance

Islamic finance has seen its most successful development in countries that are more tolerant and secularist, with free markets and representative governments that provide the necessary space for it to develop without owning the banks. (Malaysia may be the best example of such a country). Islamic finance adheres to many of the same principles as western capitalism, including property rights and free markets, yet opposes the high levels of greed and charging of interest. Bahrain has been a major center of growth for Islamic finance, in part due to the AAOIFI and by issuing international sukuk securities. Kuwait, Qatar, and UAE have all taken positive steps towards developing the Islamic banking industry. Despite maintaining a level of tolerance for Islamic finance, Saudi Arabia has no true policy on developing the industry, a stance that has allowed for some development in the sector. Islamic finance has struggled in Egypt, partly due to failures of state-owned banks and a lack of adequ