The islamic asset management sector has come a long way from the first islamic fund launch, over half a century ago. islamic fund assets are estimated at usd 62 Billion, mainly comprised of islamic mutual funds totalling usd46 Billion.despite the fact that islamic mutual funds saw the highest fund launches and lowest liquidations this year, their assets under management have fallen.
Ernst & Young Report:
Islamic banking assets with commercial banks globally are set to cross US$1.7t in 2013 suggesting an annual growth of 17.6% over last four years. However, there is a noticeable slowdown caused by two major developments
Ernst & Young Report:
In recent years, the Islamic insurance industry (takaful) experienced continued strong double-digit growth. Our Global Takaful Insights report captures key Islamic insurance industry and regulatory developments across established and emerging markets. We also discuss the major needs the industry has as it moves toward the next phase of its growth.
Islamic finance assets world-wide continued a long run of growth to reach an estimated $1.45 trillion in 2012. UKIFS’s findings show that Islamic finance has shown resilience at a time when the global economy has slowed and conventional banking in Western countries has been under pressure. By contrast global assets of Islamic finance have doubled since the start of the economic downturn.
The UK continues to maintain its position as the leading Western provider of Islamic finance with assets of USD$19bn. The UK also benefited from a globally buoyant sukuk market in 2012, with issuance up two-thirds to USD$139bn. This was reflected in 14 new sukuk listings on the London Stock Exchange since 2012. There are now 49 sukuk bonds with a combined value of $34bn listed on the London Stock Exchange. Additionally, seven exchange traded funds and two exchange traded products are also listed on the London market.
The United Kingdom has become the key Western centre for Islamic Finance and London is its world leading financial services center. Although the UK has been providing Islamic for 30 years, it is recent developments that have contributed to it becoming the Western center of choice in the provision of Islamic Finance.
Islamic ﬁnance is based on ethical principles in line with Islamic religious law. Despite its low share of the global ﬁ nancial market, Islamic ﬁnance has been one of this sector’s fastest growing components over the last decades and has gained further momentum in the wake of the ﬁ nancial crisis.
The paper examines the development of and possible prospects for Islamic ﬁnance, with a special focus on Europe. It compares Islamic and conventional ﬁ nance, particularly as concerns risks associated with the operations of respective institutions, as well as corporate governance. The paper also analyses empirical evidence comparing Islamic and conventional ﬁ nancial institutions with regard to their: (i) efﬁ ciency and proﬁ tability; and (ii) stability and resilience. Finally, the paper considers the conduct of monetary policy in an Islamic banking context. This is not uncomplicated given the fact that interest rates – normally a cornerstone of monetary policy – are prohibited under Islamic ﬁnance. Liquidity management issues are thus discussed here, with particular reference to the euro area.
This report looks at the emerging regulatory and practice challenges that will impact the Takaful industry. It seeks to assess the business structures and strategies, market development and growth trends globally.
Throughout the report, we explore key emerging practical and strategy issues pertinent to the industry and suggest the ways in which Takaful operators can adapt and respond to these challenges for the coming new phase of growth.
This thought leadership report also provides a case study of the industry in Bahrain and highlights growth trends and challenges to sustain growth.
The methodology of developing this report is based on original research whose aim is to analyze key markets in MENA and SEA. The report combines the insights and first-hand experience of Deloitte’s leading practitioners and prominent industry executives from the Takaful sector. Interviews were carried out with a number of thought leaders from academic and research institutions, law firms, regulatory authorities and industry self-regulatory organizations.
This paper gives a discussion about the Islamic capital market products and it’s possible role to promote economy and foster financial stability to a post revolution country such Tunisia. The Islamic financial system as a part of the whole Islamic capital market is playing important roles in offering original modes of financing to both individuals and businesses. That’s why we are asking about the possibility to develop an Islamic capital market which will contribute to come out the economic difficulties of this country. This paper can be thought of as an indicator about the contribution of Islamic capital market products in promoting post revolution countries economies. To
my knowledge it’s the first paper treating this problematic in order to give useful reflections to the interested in this domain of Islamic finance in these specific regions known by their revolutions climates.
In the wake of the global financial crisis, Islamic finance has gathered momentum with Sharia-compliant principles, as Paul McNamara reports
The origins of the Islamic finance industry are rooted in the recent past – 1975 to be precise, with the creation of Dubai Islamic Bank in the United Arab Emirates. It was the brainchild of visionary businessman Haj Saeed Ahmed Lootah, who convinced the then emir of Dubai, Sheikh Rashid bin Saeed Al Maktoum, that a new form of finance was needed.