ABSTRACT
A unique feature of the Middle East is the attempt to pursue development objectives which are consistent with Islamic values. Material accumulation is not condemned, but is regarded as secondary to spiritual fulfilment. Islamic teaching is not only relevant to what is funded, but how the financing is arranged. Islamic financial institutions encourage profit sharing and equity participation rather than debt finance which is viewed as inherently unjust. Islamic finance provides a viable alternative to lending, with much success in the Middle East in banking, fund management and insurance. Islamic capitalism is well established and provides solutions that have much popular appeal.
