This financing method is a growth market worldwide but currently supplies only a tiny fraction of the funds needed by industry players. However, U.S. companies in other sectors are beginning to exploit its potential. In fact, only two months ago General Electric became the first Western industrial company to issue a sukuk bond, worth around $500 million.

The Houston Chronicle reports that there is a strong business case that Shariah-compliant finance — worth more than $1 trillion worldwide — could benefit the oil and gas industry by adding flexibility to the marketplace. Broadening the investor pool would allow companies to diversify their portfolio and lower the cost of capital. And as real property with clearly defined rights under Texas law, oil and gas are assets that perfectly fit the Shariah-compliant model.

 For the full story, click here:  http://www.chron.com/disp/story.mpl/editorial/outlook/6840982.html