As news began to roll out this week that Dubai World, the government of Dubai’s investment arm, was looking to delay payment on nearly $60 billion in debt, one of the topics that emerged into focus was Islamic finance.
The bonds that Dubai World issued were interest-free bonds, in compliance with Sharia law. Some analysts now say that this places Dubai World and its bondholders in a partnership, which opens up a whole new set of legal complications.
To explain the subject to us, our guest today is Zafar Sareshwala, who heads Parsoli Corporation Ltd., an Islamic brokerage firm based in Mumbai. Parsoli was named the best Islamic brokerage firm in the world in 2007.
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