Islamic finance is growing, but politics, and perhaps prejudice, might be hamstringing this business in the United States.
In the past few years bills have been introduced in at least 20 states to forbid courts from invoking foreign laws in rulings. Proponents have touted the bills as a way to prevent Sharia, a code derived from Islamic law, from becoming the law of the land — a risk that many attorneys say is nonexistent. Arizona, Louisiana and Tennessee have passed “Sharia ban” laws, which critics call a way of scoring political points by exploiting anti-Muslim sentiment.
It is unclear whether those laws would directly affect the growth of Islamic finance, which follows the tenets of Sharia law, such as a ban on paying interest. But at the very least, the political climate for Muslims is certainly not fostering a welcoming environment for what experts call an emerging market. (More)