The potential disadvantages of Shariah-compliant finance are that each investment theoretically needs to be approved by a panel of scholars, which can be time consuming, and that the purchase and resale model of murabahah can lead to double taxation through stamp duty.
A slew of private bankers are pacing eagerly through their air-conditioned corridors, keen to sign up customers with at least the magic figure of $1 million available to place on deposit.
Maybe private equity fund managers aren't yet seen as the cuddly bunnies that their mothers no doubt believe them to be, but the direction that the industry has adopted for itself should at least rub some of the harsher edges off the industry's reputation.
The measure could pose a serious threat to world trade, according to Simon Witney at law firm S J Berwin in London. "I think it is probably the most aggressive attempt that I've seen in Europe to legislate on investment issues," he says. "It would create a great deal of problems if it goes through as drafted."
For the Chinese entrepreneur, "this is a terrible situation," says Wallace. "They may be forced to give up control of their companies or not invest at all."
With jitters, if not outright panic characterising the international markets and threatening to derail any number of deals, dampening growth across most sectors and geographies, the near-term health of the 'risky' Asian markets cannot be guaranteed.
