KUALA LUMPUR, March 9 — The Dubai debt crisis does not represent a permanent setback to Islamic finance even though the sukuk or Islamic bonds suffered a blow as potentially safer instrument than conventional instruments.

Deputy Minister of International Trade and Industry Datuk Mukhriz Mahathir (picture) said this was because of the reasonable disenchantment with the banking and financial system as practised in the West.

However, a marked slowdown in business could occur, he said at the launch of the Amanah Mutual Bhd Shariah-compliant close-ended fund AMB Dana Aqeel Capital Protected today.