Shariah’s Black Box

[51] For GCC sovereign wealth funds purchasing U.S. assets, see David Enrich, Oil-Rich Persian Gulf Countries Show Growing Financial Clout, Dow Jones Newswires, Oct. 22, 2007, available at http://www.zawya.com/story.cfm/sidDN20070920015851 (last visited Feb. 4, 2008).  For the push to establish SCF in the U.S., see generally Wayne Arnold, Adapting Finance to Islam, N.Y. Times, Nov. 22, 2007, available at http://www.nytimes.com/2007/11/22/business/worldbusiness/22islamic.html?ei=5087&em=&en=d6f0821c05a1d02f&ex=1195880400&pagewanted=all (last visited Jan. 25, 2008).

[52] Karen Lane, Islamic-Bond Market Becomes Global By Attracting Non-Muslim Borrowers, Wall St. J., Nov. 16, 2006, available at http://online.wsj.com/article/SB116361223362324035.html (last visited Jan. 25, 2008); see also Press Release, Dow Jones, Dow Jones Indexes and Citigroup To Launch First Islamic Bond Index (Mar. 6, 2006), available at http://www.dj.com/Pressroom/PressReleases/Other/US/2006/0306_US_DowJonesIndexes_1095.htm (last visited Jan. 25, 2008).

[53] See Dow Jones Islamic Market Indexes, Dow Jones Indexes, available at http://www.djindexes.com/mdsidx/?event=showIslamic (last visited Jan. 25, 2008).

[54] See Standard & Poor’s, S & P Shariah Indices, available at http://www2.standardandpoors.com/spf/pdf/index/SP_Shariah_Indices_Methodology_Web.pdf  (last visited Jan. 25, 2008).

[55] See Index Comparisons, Dow Jones Islamic Fund, http://www.investaaa.com/cgi-bin/client_product.cgi?member=55&product_id=527 (last visited Jan. 25, 2008).

[56] See Joanna Slater, Growing Interest: When Hedge Funds Meet Islamic Finance, Wall St. J., Aug. 9, 2007, available at http://online.wsj.com/article/SB118661926443492441.html?mod=todays_us_page_one (last visited Jan. 25, 2008).

[57] See, e.g., Islamic Finance, Devon Bank, http://www.devonbank.com/Islamic/ (last visited Jan. 25, 2008) (Chicago-based Devon Bank internet site promoting its Islamic finance products).

[58] See, e.g., Shirley Chieu, Islamic Finance in the United States: A Small But Growing Industry, Chicago Fed Letter No. 214, May 2005, available at http://www.chicagofed.org/publications/fedletter/cflmay2005_214.pdf (last visited Jan. 25, 2008); Office of the Comptroller of the Currency, Interpretive Letter No. 806, Oct. 17, 1997, available at http://www.occ.treas.gov/interp/dec97/int806.pdf; Office of the Comptroller of the Currency, Interpretive Letter No.867, June 1, 1999, available at http://www.occ.treas.gov/interp/nov99/int867.pdf; see also State of New York Commissioner of Taxation and Finance Advisory Opinion Petition No. M010821A, Jul. 26, 2002, available at http://www.tax.state.ny.us/pdf/advisory_opinions/real_estate/a02_4r.pdf (last visited Jan. 25, 2008).

[59] See generally Vogel & Hayes, supra note 18. SCF is “legal” in the sense it includes aspects of binding law, especially in Muslim countries where Shariah is considered both constitutional and statutory, such as Saudi Arabia, Iran, and Sudan; “normative” in the sense that Shariah is considered an all-encompassing way of life; and “communal” in the sense that communities of Muslims have in fact embraced Shariah as authoritative at some level.

[60] Bassiouni & Badr, supra note 32, at 135.

About David Yerushalmi

Mr. Yerushalmi is a lawyer specializing in litigation and risk analysis, especially as it relates to geo-strategic policy, national security, international business relations, securities law, disclosure and due diligence requirements for domestic and international concerns. David Yerushalmi has been involved in international legal and constitutional matters for over 25 years. David Yerushalmi is today considered an expert on Islamic law and its intersection with Islamic terrorism and national security. In this capacity, he has published widely on the subject including the principle critical scholarship on Shariah-compliant finance published in the Utah Law Review (2008, Issue 3). This work and the empirical investigation known as the Mapping Shariah project in America was the focus of a recent monograph published by the McCormack Foundation and the Center for Security Policy.