U.S. Connecticut-based Shariah Capital predicts that more Shariah-compliant hedge funds will likely be launched, specializing in healthcare, telecommunications, and technology stocks.

According to Reuters, thus far, Islamic hedge funds have had trouble getting off the ground, due to the prohibitions against speculative financial techniques and transactions that are commonplace in hedge funds, derivatives, and other sophisticated financial investment tools. But now, the $1 trillion Islamic finance industry is broadening its reach into areas that were strictly off limits. In recent years, there have been increasing developments in, for example, issuance of credit cards that are Islamic-compliant, as well as hedge funds and derivatives trading.

Earlier this month, IIFM, an Islamic finance industry body, with the backing of a derivatives association and banks such as Credit Agricole (CAGR.PA) and Standard Chartered (STAN.L), launched a template over-the-counter Islamic derivative contract. The move was intended to address concerns by industry practitioners and scholars about the extent to which derivatives trading comports with traditional Shariah principles.

There is no doubt that there will be more attention paid to Shariah-compliant financial products as the industry continues to grow. For more information on the challenges posed to financial instruments and common diversification techniques or products by Islamic principles, please contact the attorneys at Ice Miller at info@islamic-finance-blog.com.

For the original Reuters story, please click here: http://www.reuters.com/article/idUKSGE61308Z20100311

HSBC Amanah has been named Best International Islamic Bank by Euromoney magazine, in its Islamic Finance Awards 2010. AMEinfo.com reports that the Euromoney awards are widely considered to be the most high profile accolades in the Islamic Finance calendar and annually recognize outstanding performance, quality, service, and innovation in the sector.

In addition to being awarded the title of Best International Islamic Bank, Euromoney also named HSBC Amanah Best Sukuk House for the leading role it continues to play in Islamic debt capital markets.

According to AMEinfo.com, During 2009 HSBC Amanah grew its operations in Saudi Arabia, through SABB, UAE, and Malaysia, while expanding in the key growth territories of Indonesia, Qatar and Bahrain. The business launched HSBC Amanah Premier, the world’s first international Islamic premium banking service and led activity in the Islamic debt capital markets, structuring and lead managing many of the landmark transactions in 2009.

For the full story, click here: http://www.ameinfo.com/223934.html