As we alluded to here on SFW back in April and January, the UAE’s Dana Gas, which already had a jaded record when it comes to investment ethics, is NOT going to pay off its creditors under the Shariah-compliant bond (sukuk) arrangement as the fawning financial media had reported.
There is no sugarcoating this development. Not even Reuters, whose parent company has a vested interest in Shariah-compliant finance, could bring itself to downplay the significance of a very nearly $1 billion default in the Shariah-compliant bond (sukuk) market.
“This is going to shake the faith of investors (in sukuk) big time,” said a Dubai-based trader, who asked not to be identified.
We agree. The financial jihadists have been insisting that they hold the high ground when it comes to ethical investing. We’ve already debunked that based on support for jihad, now the idea of Shariah as “ethical” has been debunked based on broken promises and outright corruption leaving investors holding the bag.