Sep 07 2011 |
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"Islamic PE investors duped"
By John Foster Islamic private equity has been a rip-off over the last 10 years, where: "much of it was fraudulent, or nearly so. Investors were duped. A lot of money was lost on one side, but gained unscrupulously on the other," so says John Sandwick, a Geneva-based Islamic wealth and asset management specialist.Sandwick [pictured] thinks that the growth of Islamic private equity to a $50bn industry by the end of 2007 was a product of abundant cheap credit thrown around in the run up to the global financial collapse which led to the formation of a vast bubble.
He said: "This bubble collapsed. There is going to be a lot of pain for a long time. During this painful period investors are gun shy. They cannot tolerate more high-risk investing."
He thinks it was part of a general public madness that pervaded at the time with the growth and development of the asset class being unsustainable.
© The Islamic Globe 2011
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