Latest articles from Islamic Finance

Islamic finance interbank rate

The launch of the world's first Islamic interbank rate is a key step in the industry's efforts to distinguish itself from conventional finance and achieve greater standardisation. The measure of its success will only come with time, however, and is dependent on its ability to offer competitive pricing, its inclusion of more currencies and its application to a range of financial instruments.

Will Islamic finance's asset management potential finally be fulfilled

In 2010 it seemed that the Islamic asset management industry was taking off when it recorded a 7.6% increase in its assets. But with most sharia-compliant vehicles not satisfying global industry standards, and a large number of relatively small, equity-heavy funds in the sector, growth is needed in many other directions before the industry can fulfil its potential.

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Islamic finance's growth story is only just beginning

The Islamic finance industry has undergone rapid growth in recent years, but in representing just 1.5% of global banking assets, it remains a hugely underpenetrated market across many asset classes and geographies. This has led the heavyweight global Islamic players to redefine their strategies to capitalise on these opportunities.

Khairul Nizam, deputy secretary general of the Accounting and Auditing Organisation for Islamic Financial Institutions

AAOIFI to look to develop Islamic finance standards

With no single interpretation of Islamic law, differences in rulings between scholars over whether products are sharia-compliant has led to a lack of standardisation in the industry. Resolving this issue is key to bringing about greater efficiency, transparency and cohesion – ultimately helping to raise the curtain for more Islamic business, says AAOIFI deputy secretary general Khairul Nizam.

Sukuk appeal set to spread

The most significant industry trend to date this year has been the resurgence of the Islamic bond (sukuk) market. After a brief setback in 2010, funds raised through global sukuk issues in 2011 stood at $44.7bn in September. But sukuk issuance is still dominated by sovereigns from Asian and Gulf markets and remains concentrated in certain sectors. Four industry experts look at what needs to be done to encourage participation from corporates and facilitate issuances in a wider range of currencies.

Dr Mohammed Daud Bakar

Islamic finance's full potential still to be unlocked

Despite an impressive 12 months for Islamic finance, the view from the industry is that results could be even greater if hurdles concerning taxation, regulation, legal frameworks, market challenges and a lack of qualified scholars are tackled.

Best prospects for Islamic finance outside core markets

Several emerging markets with large Muslim populations combine low bank penetration and a high return on assets with a relatively small market share for Islamic banking, and thus provide further opportunities for growth in the Islamic finance sector.

Qatar Central Bank

The new value proposition for Islamic finance

Amid calls for greater reporting transparency and more engagement with the lower end of the economic pyramid, Islamic finance is experiencing a revival. But for sharia-compliant institutions to take advantage of the trends emerging in the marketplace, several key events need to take place.

Top 500 Islamic Financial Institutions: Methodology

A look at how The Banker  and Maris Strategies put together the Top 500 Islamic Financial Institutions survey.

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Islamic finance roars again

After recording relatively sluggish growth in last year's survey, this year's ranking shows the Islamic finance industry posting impressive figures, passing the $1000bn mark in assets for the first time.