The requirement for a real asset to back financial assets can be met in many other ways than by financing the construction of office buildings, shopping malls or luxury apartments. The industry should look instead at the scope for increasing the finance it provides for productive assets such as factories, ports, mines, and oil processing facilities.
Financing these activities  BIS Review 126/2010  1  may appear less profitable in the short-term, but may be a better proposition on a riskadjusted basis. Diversification is also needed of product offerings that will allow Islamic financial institutions to serve their customers better and to generate more stable revenues.