Survey of Global Islamic Finance
Although the Shariah-compliant retail financial services industry is still in the early stages of development in many markets, there are some lessons and best practice issues emerging in theindustry. This report looks at the likely trends within this market and assesses the future potentialfor growth in mortgage finance, credit cards and wealth management.
Islamic banking has witnessed significant growth since it was formally launched and has sincebeen boosted by the repatriation of Middle Eastern funds and economic development in thatregion. Given the favourable demographic trends within core markets, growth is set to continue.In addition, major international financial services firms have launched Shariah-compliantbusinesses; The UK, US and Singapore all witnessed the establishment of independent Shariah-compliant financial institutions; and regulators of major Islamic banking markets agreed onregulatory standards governing Islamic banking activities. As the re-structuring of globalfinancial services continues, and previously well established financial players attempt to re-position themselves with core audiences, many are arguing that Islamic banking practices haveshielded institutions and their customers from the consequences of the credit crunch. As a result,shariah models have gained favour with non Muslim customers looking for an alternativefinancial model with a prominent moral foundation. At the same time industry observers feel thatthe continued expansion of product lines has the potential to blur the lines between Islamic and
other ‘more mainstream’ types of finance.
This report provides an extensive analysis of the global Islamic finance market
It details historical values for the Islamic finance market
The report provides a detailed analysis on key trends and drivers, marketing strategies,and challenges in the global Islamic finance market
It details the marketing strategies adopted by various banks
It profiles the major banks operating in the Islamic finance sector
Islamic finance Assets-Under-Management (AUM) grew at 18.8% per annum during theperiod 2006-2011.
Iran alone accounts for around a 37% share of Islamic finance assets.
Unlike conventional products in mature markets, where there is a lot of competition,Shariah-compliant products have a ready market due to significant customer demand.
Customers of Shariah-compliant products tend to have a more favourable risk profilecompared to customers of conventional consumer finance products.