Joining Forces: Islamic Finance and Private Equity

Abstract

In the field of Islamic corporate finance, private equity provides an attractive outlet for Musharakah-based investments in institutional Islamic funds, culminating in an increasing trend of Islamic banks getting involved in private equity deals by setting up their own private equity funds. The chapter discusses about the untapped market for private equity in the Muslim world in general and the Middle East in particular. Since most of the Middle Eastern big individual investors and Islamic banks have had excess liquidity over the recent year, therefore, the importance of private equity in the region has been gradually realized.