Islamic investment funds are at risk of losing customers despite their popularity amongst foreign investors and Arabs, especially after the deterioration of the U.S. bond market. After the U.S. debt crisis, which reduced its credit rating, it caused many to resort to Islamic Funds, which are safer, but with conflicting opinions and a slight state of confusion amongst investors. The chairman of the Board of Directors of Alfa Capital, Abdel Moneim Omran, attributed the reluctance of foreign investors to invest in the eight Islamic funds in Egypt because of the lack of authority to organize Islamic funds. He also pointed out the Capital Market Law No. 95 of 1992 regulate fund work in general and does not address Islamic Funds in particular. Omran said Islamic investment funds were in high demand by foreign investors, particularly those from the Gulf. He said the problem of investing in Islamic funds in Egypt lies in the fact that each bank appoints a supervisory authority of its own. This will cause a different investment strategy and even different religious outlooks regarding bonds reflecting a conflict of opinions in investing in Islamic funds in Egypt. Thus it caused a reluctance for investors to invest, unlike what happens in countries such as Saudi Arabia and Malaysia, where there is one authority governing Islamic Investment and applies its rules to the entire market, regulates and controls it. Omran also pointed out the Financial Supervisory Authority often refuses to permit funds to add the word ‘Islamic' to the name of the fund. “How can the authority not allow funds from identifying themselves and yet allow them to put themselves into the market," he criticized and hopes this trend would change.
