Building protection

A drop in Middle Eastern stock markets this year has caused some investors to pull their cash out of those markets, but demand for sharia-compliant principal-protected products has remained strong. John Ferry reports

Middle Eastern investors have shown greater interest in sharia-compliant structured products over the past two years. With energy prices soaring, real estate prices rising and local stock markets hitting record highs, cash-rich Islamic investors have been keen to place their funds in alternative investments that comply with sharia. Even the correction in local stock markets this year has done little to stem the tide, with investors turning more towards principal-protected products. "Islamic