The future of sharia

In an interview with Risk Islamic Finance, Sheikh Yusuf Talal DeLorenzo, an Islamic scholar who acts as a sharia adviser to more than 20 financial institutions globally, discusses the key developments, opportunities and challenges facing the Islamic finance industry. By Radi Khasawneh

Issuance of Islamic bonds - or sukuk - has risen dramatically in recent years, from $7.59 billion in 2005 to $18.13 billion the following year, according to Bloomberg Islamic Capital Markets. That rise in issuance reflected the strong growth in demand from Islamic investors for assets that comply with sharia (Islamic law). However, new issuance volumes fell sharply in the first quarter of this year to $1.96 billion. That compares with $4.72 billion in the corresponding period of 2007.

This drop