As we’ve sometimes noted here, advocates have claimed that Islamic, Sharia-compliant financial products and systems are safer than conventional ones. At Davos, reports Reuters, a top regulator for the government of Qatar disagrees:
“There is some assumption that some of it is cosmetically more comforting, but when so many Islamic instruments are now trying to mimic the effect of conventional products, you need to examine if they carry the same risk profile,” Philip Thorpe, chief executive of Qatar Financial Center Regulatory Authority, told Reuters.
“It’s a myth for anyone to assume anything about financial products, including Islamic finance,” he said.
Read more at Reuters.