I should preface this comment by saying I have not read the publication. I am sure those writing it and encouraging these products and institutions have good intentions.

As an attorney who has done so called “shariah complaint” deals, sukuk, ijara, etc. working for a major US law firm, I would caution against what is being offered by many banks and institutions today. It is highly contentious whether many of these products are really Islamic. Many economists such as Prof. El Gamel and practitioners including myself see it as Shariah Arbitrage. They are normal everyday financial products structured to look and feel Islamic for a higher price compared to the conventional product.

From a legal perspective and from a consumer’s perspective one would caution against these products because they have never really been tested in the Courts. Therefore for the consumer it is difficult to predict what the legal outcome of something going wrong would be. From a financing perspective these products are more complicated to value. Although many of these products have the same names, in many or almost every deal the actual financial and legal structure is different. For the normal, average, individual investors, personally I feel uncomfortable for their position from a purely legal perspective, leaving the Shariah discussions aside. Large corporations and institutions, such as Air France who have done ijara financings for their aircraft, can hire hoards of sophisticated lawyers and bankers.