Arfat Selvam, a managing director of Duane Morris & Selvam LLP in Singapore, comments on the prospects of Islamic finance in Indonesia, in light of the country's large Muslim population, growing economy and high demand for infrastructure projects. The piece focuses on the use of sukuk, or Islamic bonds, and examines the promising developments and biggest obstacles to substantial growth in the Indonesian market for the Shariah-compliant financial instruments.

Arfat notes that she is optimistic for the country's eventual adoption of Islamic finance, despite its currently lacking the necessary legal framework and domestic demand. She also describes specific economic sectors that would see the greatest benefit from the use of sukuk.

Arfat is well-versed in the area of Islamic banking and finance. In 2005, she launched the Asian Islamic Finance Alliance (AIFA)—a strategic alliance of law firms in Malaysia, Indonesia and Brunei—which provides advice and support in the structuring of Shariah-compliant financial products as well as in the funding of mergers, acquisitions and infrastructure transactions.