Shariah-compliant finance grows with Muslim wealth, wariness of the West. In a few weeks Malaysia's central bank NAME Bank Negara and the Bursa Malaysia exchange are scheduled to launch Commodity Murabahah House (CMH), platform for shariah-compliant transactions.

"Shariah" refers to a system of devising laws -- frequently touching on aspects of day-to-day life such as politics, business, and contracts -- based on Islamic texts and traditions.

Holy See

CMH is meant to facilitate the growth of the Islamic financial industry and boost Malaysia's status as a center for such business, according to Bank Negara's deputy governor Dato Mohd Razif Abd Kadir.

For now the global hub for Islamic finance and banking is London.

Shariah-compliant banking and investing is on the rise, fueled by demand from Muslim investors in the oil-rich Middle East, increasingly industrialized nations like Indonesia and the emerging powerhouses of the Malay peninsula, and -- goaded by Wall Street's troubles -- non-Muslim investors. Last spring, the Vatican said western banks could do worse than study the rules of Islamic finance as a way to rebuild consumer confidence.

There are nine Islamic fund management firms operating in Malaysia, 14 Islamic banks with international currency business units, and three international Islamic banks. Further, the country dominates the market for sukuk bonds - Shariah-compliant debt securities - with more than 60% of the global industry.

The Financial Planning Association of Malaysia, an industry association, launched an "Islamic financial planner" qualification program in 2007. -FWR

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