Look Towards A New Future

Aug 1, 2012

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 the industry. This report looks at the likely trends within this market and assesses the future potential for growth in mortgage finance, credit cards and wealth management.

Executive summary

Islamic banking has witnessed significant growth since it was formally launched and has since been boosted by the repatriation of Middle Eastern funds and economic development in that region. Given the favourable demographic trends within core markets, growth is set to continue. In addition, major international financial services firms have launched Shariah-compliant businesses; The UK, US and Singapore all witnessed the establishment of independent Shariah-compliant financial institutions; and regulators of major Islamic banking markets agreed on regulatory standards governing Islamic banking activities. As the re-structuring of global financial services continues, and previously well established financial players attempt to re-position themselves with core audiences, many are arguing that Islamic banking practices have shielded 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 alternative financial model with a prominent moral foundation. At the same time industry observers feel that the continued expansion of product lines has the potential to blur the lines between Islamic and other ‘more mainstream’ types of finance.

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Report Details:
Published: July 2012
No. of Pages: 74
Price: Single User License: US$3800       Corporate User License: US$ 11400

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

Key highlights
Islamic finance Assets-Under-Management (AUM) grew at 18.8% per annum during the period 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 profile compared to customers of conventional consumer finance products.
Although Shariah-compliant vehicle financing is structured differently by institution and country, one of the major issues being faced by financial institutions is the lack of customer understanding of the unique features of these Shariah-compliant products.

Reasons to buy
Understand Islamic finance
Gain insight on the principles governing financial and business activities in Islam
Identify the growth drivers in the Islamic consumer finance and retail banking industry
Assess the competitive dynamics of the Islamic finance industry