Islamic Economics: Notes on Definition and Methodology

Islamic Economics: Notes on Definition and Methodology
By Monzer Kahf

"This paper aims at examining the implications of different suggested definitions of Islamic economics, exploring its scope and attempting to outline its methodology."

Islamic Economics: Notes on Definition and Methodology

Islamic Finance: Business as Usual

Islamic Finance: Business as Usual
By Monzer Kahf

"The objective of this paper is to define Islamic finance and compare it with conventional finance. This will be done on theoretical and empirical grounds based on practice in the MiddleEast and Southeast Asia.  


As the title indicates, this article argues that Islamic finance is essentially “business as usual” because the requirement of the Islamic law in financing transactions are developed and derived by human rationale and these transactions are set in a way that makes them consistent with the human nature."

Islamic Finance: Business as Usual

Islamic Finance: an Ethical Alternative to Conventional Finance?

Islamic Finance: an Ethical Alternative to Conventional Finance?
Discussion Paper
ACCA - The Association of Chartered Certified Accountants ACCA

Islamic Finance : An Ethical Alternative to Conventional Finance ? – explores the basic tenets of Islamic finance, the role of the UK in leading its development and whether it is a serious alternative to conventional finance.

Islamic Finance: an Ethical Alternative to Conventional Finance?

Islamic Banking in Indonesia: Lessons Learned

Islamic Banking in Indonesia: Lessons Learned
By Rifki Ismal, Directorate of Islamic Banking, Bank Indonesia
April 2011

This is a paper prepared for the Annual Meeting on Trade and Development, United Nations of Conferences on Trade and Development, April 6th-8th, 2011, in Geneva, Switzerland.

Abstract: "In Indonesia, Islamic banking shows a progressive performance with a robust performance of banking indicators. Its operations  engage non bank financial institutions, Islamic money and capital market and takaful (Islamic insurance) with the ultimate target of financing the real sector and improving the economy. However, there are still some challenges to be solved in particular the small market share, lack of human resources and, lack of product development. Some recommended actions are proposed in the paper to mitigate those problems and foster the development of the Islamic banking industry."

Islamic Banking in Indonesia: Lessons Learned

A Primer on Islamic Finance: Definitions, Sources, Principles and Methods

A Primer on Islamic Finance: Definitions, Sources, Principles and Methods
A. Gait and A. C. Worthington
University of Wollongong
Year 2007

"Islamic finance is one of the most rapidly growing segments of the global financial system. However, despite the increasing importance of Islamic finance, particularly in developing economies in the Middle East and South-East Asia, religious and social complexity has acted against a fuller understanding by regulators, policymakers, researchers and practitioners. This paper provides a succinct and accessible analysis of the definition, sources, principles and methods of Islamic finance. This serves as a suitable starting point for further work into Islamic finance and many of the pressing regulatory, supervisory and competitive issues that remain as yet unaddressed."

A Primer on Islamic Finance: Definitions, Sources, Principles and Methods

Islamic Finance - Luxembourg

New Arendt & Medernach publication on Islamic finance

Islamic finance has been one of the driving forces of the development of Luxembourg for a long time. Indeed, as early as in 1983, Luxembourg became the domicile of the first Shari'ah-compliant insurance company in Europe. The Luxembourg Stock Exchange played a leading role as the first European Stock exchange to enter the sukuk market in 2002. Luxembourg has a long experience in the Islamic finance field and there is a clear and strong willingness from market participants and authorities to further support the development of this activity.

Islamic Finance - Luxembourg

Islamic Finance - Australia

Islamic Finance - Australia

Austrade

February 2010

The booklet Islamic Finance provides a detailed explanation of the opportunities that booming Shariah-compliant investment and banking offers Australia’s financial services sector.

Islamic Finance - Australia

Sukuk Report III

Malaysia Debt Securities and Sukuk Market
A Guide for Issuers and Investors
A Joint Publication by Bank Negara Malaysia and Securities Commission Malaysia
2009

Sukuk Report III

Sukuk Report II

Guide to Issuing Sukuk from the DIFC
Prepared by Clifford Chance, Amanie Consulting, the DFSA and the DIFC Authority, the guide provides a summary of sukuk structures and information on issuing sukuk in DIFC.

Sukuk Report II

Sukuk Report I

The Zawya Collaborative Sukuk Report is an agenda setting study for the growth and development of the global Sukuk industry. The report consists of thought leadership articles contributed by a number of industry leaders, survey analysis showing the matches and mismatches in supply and demand appetite, and also trend analysis, etc.

A full version of the report is available here (registration required).

Sukuk Report I

Islamic Finance Training Programs & Certifications 2.0

One of our earliest posts in the blog related to Islamic Finance Training Programs & Certifications, it remains one of our most popular links (and most downloaded documents). This suggests not only a strong interest to learn about Islamic finance but also the need for independent/objective analysis of the many options available to students (ourselves included). Here we present a more detailed review that has been drafted by one of our readers (Mansoor Munir Ahmed) and extend our sincere gratitude for his input (he wanted no credit for this work so further praise is in order).

As an aside - there is a significant debate amongst Islamic finance practitioners and young Muslim professionals about whether Islamic finance makes any sense at all, and whether it is worth trying to engage in this industry. We can only suggest 1) doing your homework before diving in and 2) knowing that every small effort counts. Here we have a contribution from a single individual that might look small in the greater scheme of things but as these add up the impact can be significant.

Introductory Level

1. The Islamic Banking Diploma - Emirates Institute for Banking and Financial Studies: It aims to disseminate knowledge and information about Islamic banking and finance and produce high caliber professionals with the necessary technical skills and knowledge in Islamic finance. The programs run five days per week, Sunday to Thursday – morning and evening sessions. It has three theoretical semesters (16 weeks each), and a summer course (8 weeks), which involves "Field Training" at an Islamic bank for non – bankers students, or a "Field Project" for bankers students who have at least three years of work experience in the banking sector.

2. IFQ (Islamic Finance Qualification) - conducted by CISI (formerly SII): A 2 hour exam is conducted with a 70% passing criteria. The exam is based on a book which is provided by the institute, it has 10 chapters and mostly based on Shariah Principles. The scope for the IFQ course is quite high as it has been recommened by a number of western based islamic financial institutes and some banks in Pakistan.

Vocational Qualifications - Accounting & Auditing

1. AAOIFI: the standard setter for the faith based Islamic industry are offering a Certified Islamic Professional Accounting (CIPA). It is the most re-known coursein the global Islamic financial market-place.

2. CIMA: has recently launched its Certificate in Islamic finance. It is ideal for those desiring to pursue their career in the accounting and auditing fields.

3. BIBF in association with AIA has introduced an Islamic Accounting and Compliance Diploma (DIAC). It covers the basics and lays down the foundation for the Islamic accounting & compliance concepts.

Intermediate Level - Distance Learning

1a. International Certificate in Banking Risk and Regulation - GARP: This course is directed to those interested to become risk management practitioners. This conventional financial knowledge is only meant to complement its counterpart (coming soon) Islamic risk management. In a qualitative approach, the International in Certificate in Banking Risk and Regulation presents a studied review of the following: Traded Market Risk Management and Regulation; Treasury Risk Management and Regulation; Credit Risk Management and Regulation; Operational Risk Management and Regulation; Supervision and Regulation. It has been suggested that candidates for the International Certificate should have both a reasonable understanding and some experience of banking. Therefore they are expected to know terms commonly used in the finance industry. To obtain the International Certificate in Banking Risk and Regulation, you will be required to pass one exam that consists of 120 multiple choice questions and will last 175 minutes. A candidate will need to answer 80 questions correctly in order to pass.

1b. The Certificate in Risk Management for Islamic Financial Institutions - GARP: The Certificate in Risk Management for the Islamic financial industry will be launched in the last quarter of 2009. An excellent added value skill for Risk managers. It will be an online course with an exam seating for every module.

Intermediate Level - Certification

2. Certified Islamic Finance Expert (CIFE) - AIMS: Distance learning program designed by AIMS to educate individuals in the areas of Islamic Economics, Islamic Finance, Product Development, Modes of Financing, Islamic Investment, Shari’a Standards & Rulings and Islamic Insurance. Pre-requisite for this program are:
- Applicants must possess an appropriate University or College degree from a recognized institution
- Applicants who do not hold a university or college degree, will be considered for admissions if they have a diploma in Finance/Banking/Insurance OR minimum three years full-time appropriate work experience in finance
- Applicant must be minimum 23 years of age

3. Certified Islamic Banker (CIB) - Professionals Institute of Excellence: The program is also a distance learning applicant, consisting of four modules but the date of examination is customized as per ‘persons’ availability. It is a specialized job-oriented corporate training program in Islamic Banking. The lectures are delivered by leading Islamic banking scholars and experts in Pakistan. The program is affiliated with the Pakistan Institute of Banking. The above is a broken link, for additional info contact pie.pakistan@gmail.com

4. Certified Islamic Banker (CIB) - AIMS: The program gives an in-depth study of Islamic financial and Islamic banking system. CIB is designed to produce highly skilled professionals and valued “Islamic Bankers” for the highly growing Islamic Banking industry. On the successful completion of this training, participants are capable of designing, implementing, consulting, operating and administering Riba-free Islamic financial products and services, within their organizations.

5. Certified Islamic Finance Executive (CIFE) - Ethica Institute of Islamic Finance: Offered from Dubai, UAE it claims to be the only accredited Islamic finance certificate available 100% online. It covers and explains all the standards of AAOIFI and discusses all Islamic modalities of finance in practice today (claims to be the only institute that delivers standardized certification based on AAOIFI).  Their program was recently nominated for “Best Islamic Finance Training Institution” by IB&F.

6. Certified Islamic Investment Analyst* (CeIIA) Program - IBFNet: Candidates are required to complete twelve credit points of approved study to be awarded the certificate. To qualify for entry to the Certified Islamic Investment Analyst, applicants normally must have: completed at least first two years of a\ recognized four-year undergraduate degree or equivalent in field of economics, commerce, business, accounting, law and related areas; preferably be part of the banking and financial services industry; have appropriate resources to facilitate ready access to the Internet (check this by visiting our Technical Page); have ready access to a personal e-mail address; and have the skills required to access and manipulate materials delivered electronically.

7. CIFA: Certified Islamic Financial Analyst Program (CIPA) - Shape Financial: SHAPE now offers a comprehensive three level certification program to develop financial service professionals with a deep and on-going knowledge of Islamic finance. The elements of the program are meant to assure that users understand and retain the Islamic rules applied to finance, banking, and investment. The program addresses the global Islamic financial markets.

8. Chartered Islamic Finance Professional (CIFP) - INCEIF: CIFP is a certification for those looking to procure the expertise in a broad spectrum of the Islamic banking and finance services industry including takaful and capital markets. It is online (and on campus) based facilitation and can be completed in a minimum of 18 months and a maximum of 6½ years. Bank Negara supports this course by offering scholarship to foreign students. To qualify a student must have Bachelor Degree or a Diploma from a recognised institution with a minimum of 5 years working experience in a related industry.

9. Diploma in Islamic Finance - Qatar Faculty of Islamic Studies: Providing a core focus on finance and economics, pertinent understanding of Shari’a rulings. In order for graduates to qualify for this program they must have a solid background in mathematical, statistical, and econometric technique and/or relevant work experience is not mandatory but will be considered an asset. The program has been divided into two routes (1) Asset Management; and (2) Auditing.

10. Diplôme d’Economie et de Finance Islamique (DEFI) - IIT France: This program is facilitated in French only, launched recently in November of 2009.

Intermediate Level - Legal Studies

1. Diploma in Law - University of London: A distance learning course consisting of four units. It is a qualification in its own right and also provides an entry route to the LLB. Successful completion of the Diploma gains credit for the first four subjects of the LLB degree. A number of British universities recognize the Diploma as an entry qualification for becoming a second-year, campus-based LLB student. This diploma will pave the way in ones career toward Masters in Islamic law. This program can be completed in 1-5 years.

2. Executive Diploma in Islamic Law (Islamic Banking) - IIUM: This course has a duration of 1 year on a part time basis, and is conducted in English. It is suitable for those with some experience in the Islamic finance industry. Here are some prerequisites:
- SPM 3 credits with 3 years of working experience, or
- STPM 2 principles with 2 years of working experience, or
- Diploma recognized by IIUM with 1 year working experience, or
- Degree in any discipline recognized by IIUM
It is being conducted by Harun M. Hashim Law Centre, International Islamic University, Malaysia.

3. Bachelor of Laws (LLB) and Diploma in Law - University of London: A programme for those who intend to obtain an LLB degree of international standing providing the first step on a career route to doing LLM in Shari’a or Islamic law Applicants who already have an undergraduate degree acceptable to the University may complete the LLB in two years through the nine-unit Graduate Entry Route. This can be completed in 3-8 years (or a minimum of 2 years on the Graduate Entry Route).

4a. LLB (Honors) - IIU: A 5 year (13 semesters) degree programme, anyone who has accomplished his A/level or F.A (having at leat 50% marks) can apply.

4b. LLB - IIU: A three year (7 semesters) degree programme course. The candidate should have at least Bachelor or equivalent degree from a recognized University, with at least 50% marks (C Grade).

4c. B.Sc in Islamic Banking & Finance - IIU: This programme {B.Sc (Hons)} is a 4 year program offered to candidates with alternative background such as: a) Candidates holding Higher Secondary Certificate from a Board of Intermediate and Secondary Education in Pakistan or equivalent qualification from recognized institutions within the country or abroad; b) Candidates with at least 45% marks in aggregate are eligible to apply. Preference will be given to candidates having studied Economics/Mathematics/ Statistics. Admissions are offered purely on merit in which the entry tests play important role. Foreign candidates may apply provisionally on the basis of paper qualification.

5. Post Graduate Diploma in Islamic Banking and Insurance - IIBF: The diploma aims to engrave the basic operational and fundamental theories on which the whole banking structure is designed. More details can be found on the website given below, its cost is £1,000 and is a distance learning course benefitting those who intend to carry it out on their own time.

6. Post Graduate Diploma in Islamic Banking - IIU: Can be achieved by candidates holding BA/B.Sc/BBA/B.Com degree or equivalent qualification from a recognized institution. Admission is granted purely on merit basis through admission test and interview. Preference will be given to nominees of Banks and Financial Institutions. The good thing about this course is that every student will be required to present a workshop on a project prescribed by the faculty, which will be evaluated accordingly. Alternatively the student will be required to join internship with an Islamic financial institution for a period of 6-8 weeks. The performance of the student will be evaluated by a committee of examiners in the faculty on the basis of the report submitted by the head of host institution.

7. Post Graduate Diploma in Islamic Banking & Finance - The Institute of Islamic Banking & Finance: An exclusive threshold Gateway Programme designed as a Distance Learning Program to offer knowledge resources in a comprehensive and compact manner motivating students to explore further avenues for knowledge. Any Graduate in any discipline from a recognized university with simple ability to understand English language as the entire material is designed in English language. MBA/BCom candidates enjoy convenience of understanding the subject with ease.

8. Postgraduate Diploma in Islamic Business and Finance (PGDIBF) Program - IBFNet: To qualify for entry to the Postgraduate Diploma in Islamic Business and Finance program, applicants normally must have completed CeIB/CeIIP/CeIIA (All of these courses have been mentioned in this database).

9. Postgraduate Diploma in Islamic Banking & Finance - Al Huda CIBE: Intended to impart the comprehensive knowledge of Islamic Banking and Islamic Insurance with its true sense and concept in the people who are unrelated to the banking or insurance professions. The purpose of the course is to equip the graduates with the Shari’a principles of Islamic finance to fulfill the global needs of human resources and to produce well equipped professionals with the knowledge of Islamic financial concepts and products.

10. Chartered Islamic Finance Professional (CIFP) - INCEIF: An online course which claims to equip its participants with extensive knowledge in Wealth Management, Takaful, Islamic Structured Products, Regulation & Supervision and Consultancy. To qualify the participant must have a recognized Bachelor Degree in any field; or a Diploma from a recognized institution with a minimum of 5 years working experience in the related banking or insurance industry.

11. Graduate Diploma in Islamic Economics and Finance (PGDIEF) - Al Jamia Al Islamiya: A 10 months integrated course on Islamic economics and finance dealing with subjects such as Islamic economics and their measures in Qur'an and Hadith, Accountancy with Computer application (Tally & Peachtree) and Functional Arabic etc.

Intermediate Level - Insurance/Takaful

1. Certified Takaful Professional (CTP) - AIMS: A distance learning program designed to produce highly skilled Islamic Insurance professionals for Takaful industry. Educational support is provided online by renowned Islamic Insurance experts. Complete study material is provided by AIMS. The candidate interested to pursue hie career in this course must possess an appropriate University or College degree from a recognized institution & those applicants who do not hold a university or college degree, will be considered for admissions if they have a diploma in finance/Insurance OR minimum two years full-time appropriate work experience in insurance. Lastly the applicant must be minimum 22 years of age.

2. Certified Islamic Insurance Professional (CeIIP) - IBFNet : A program in which candidates normally must have: completed at least first two years of a recognized four-year undergraduate degree or equivalent in field of economics, commerce, business, accounting, law and related areas; preferably be part of the banking and financial services industry; have appropriate resources to facilitate ready access to the Internet; have ready access to a personal e-mail address; and have the skills required to access and manipulate materials delivered electronically. Persons meeting the above requirements will be required to complete twelve credit points of approved study to be awarded the CeIIP.

Advanced Level - Masters in Islamic Banking & Finance

1. Masters in Islamic Banking & Finance - IIU: M.Sc leading to M.Phil in Islamic Banking & Finance, this programme is available to candidates with B.Sc.(Hons) or MA/ M.Sc degree in Economics/ Economics & Finance and Islamic Banking & Finance from IIUI with minimum CGPA of 2.0/4.0 or equivalent are eligible for admission to the first phase of the program in the relevant area. It has a sophisticated structure paving way for candidates to M.Phil.

2. M.Sc in Islamic Economics and Finance at Department of Economics - Loughborough University.

3. MA in Islamic Management, Banking and Finance - Markfield Institute of Higher Education.

4. Masters Programs in Business/Finance/Economics/Accounting with Islamic Orientation - International Islamic University Malaysia.

5. MBA program in Islamic Finance - University College of Bahrain: evening program suitable for those who cannot commit themselves to full time academic studies.

6. Masters in Islamic Finance - INCEIF: offers training in the key areas of Islamic economics, finance and Shariah in both theoretical and applied aspects. The area of specialization is in Takaful, Islamic Banking & Islamic Capital Markets. This course can be done in 2 years (Full time) and 4 years (part time).

7. Master of Science Islamic Finance - Bahrain Institute of Banking and Finance: An expensive course but it covers both the streams (i.e. Conventional & Islamic financial streams). This is broken down into seven finance courses and five Islamic finance courses.

8. MSc in Islamic Finance - Bangor University in Wales: Recently launched, it is a balanced finance and Islam course, with the emphasis on the first. Entry to the MSc/Diploma in Islamic Banking and Finance programme requires a good first degree in a relevant subject, e.g. economics, finance, accounting or management from a university, or a similar qualification from any other institution. Alternatively, possession of a suitable professional qualification and relevant practical experience may also be accepted. (A 2 year programme, with the first year as a "qualifying year", is also available for students whose backgrounds are different from those outlined above in order to prepare them more fully for their MSc in Islamic Banking studies). The university also provides MA in Islamic Finance.

9. Master of Science in Islamic Finance - QFIS: claims to offer, like its Diploma in Islamic Finance, a thorough understanding of Shari’a rules for finance and economics. The Admission requirements are general (i.e. a bachelor's degree in Finance, or Economics, or Business, or Shari'ah and/or relevant work experience).

10. MSc Finance & Law with Islamic Finance - Newcastle University: A 12 month full-time program, which consists of a total of 180 credits modules with focuses on Financial and Corporate Theory, Law, International Economics and Finance, Money and Banking, Credit risk Modelling etc.

11. MSc Degree Course in Islamic Banking - Salford Business School: soon to be launched, aims to be delivered in full and part time modes. The degree “will complement the School's existing postgraduate degrees in Banking and Finance by providing a solid core of general banking and financial principles together with three modules specific to Islamic Banking and Finance”. Apart from the usual Islamic knowledge on transaction, product and economics students will also study core modules on Business Research, Accounting Regulation & Compliance, International Financial Markets and strategy in Finance.

12. MBA Islamic Banking and Finance - Academy UK: This is a 12 months program which apart from the Shari’a aspects of finanicing also accentuates on Quantitative Methods for Finance and Risk Management.

13. The Cass Executive MBA is a two year part-time programme tailored to suit professionals in the industry. Like other MBA’s, the course is broken down into 3 elements – core modules, elective modules and the Business Mastery Project. It offers some exposure to Islamic finance under one of its streams.

14. MBA in Islamic Banking and Finance - AIMS: An online two-part program. The First Program is called “Certified Islamic Finance Expert (5 courses)” after which the student may become applicable for the “MBA Core courses” (7 courses and 1 Thesis). The whole program is self study, with material provided by AIMS, however, online academic support is also made available. Students are given Assignments and have to pass an online multiple choice "open book" examination with a 65% passing mark. The MBA degree is awarded in collaboration with Pebble Hills University.

Advanced Level - Masters in Shari’a Law & Usul ul Fiqh

1. LLM International Law - IIU: A two year (4 semesters) degree, qualifying eligibility is at least 50% marks in L.L.B or 2.50/4.00 CPGA.

2. LLM Shari’a (Islamic commercial Law) - IIU: A two year (4 semesters) degree, eligibility for this programme is that the candidate should hold L.L.B with at least 50% marks from a recognized university.

3. LLM Usul ul Fiqh - IIU: Entails a two year (4 semester) degree, for eligibility the candidate should hold L.L.B with at least 50% marks from a recognized university.

Advanced Level - Research & Doctorate

1. International Shari’a Research Academy - ISRA: ISRA has developed a dual qualification encompassing the Shari’a & financial related issues. This academy had been instated by Bank of Negara, Malaysia and is currently scholarship based.

2. PhD Program - INCEIF : can also be conducted through scholarship financed by Bank of Negara, Malaysia. The subjects covered range from Islamic Economics to Corporate Finance, Islamic Accounting, Usul Fiqh and Qawaid Fiqhiyyah, Islamic Law of Contracts, Mathematical Methods for Economics and Finance, Eonometrics, Islamic Capital Market and Islamic Wealth Management etc. This is followed by a Dissertation/Thesis in a wide variety of fields such as Fiqh Muamalat, Sukuk, Legal aspect of Islamic financial institutions, Economics policy and analysis of Islamic financial institutions, Accounting for Islamic financial institutions, Takaful and Re-Takaful etc.

3. PHD’s in Islamic Finance - Islamic Economics Research Center, King Abdulaziz University.

4. Ph.D Sharia (fiqh/usul-ul-fiqh) - IIU: prerequisites include holding a Masters degree from a recognized institute with first division or 3.0/4.0 CGPA.

5. MA in Islamic Political Economy and MSc in Islamic Economics and Finance at Institute of Middle Eastern and Islamic Studies - Durham University: can also assist in research for dissertations and thesis.

Islamic Finance Training Programs & Certifications 2.0

IFN Roadshow - 2010 Schedule

The Islamic Finance News Roadshow is a practical way to meet industry practitioners and learn about the current issues facing Islamic finance.  A far cry from the many expensive conferences out there, and it must be said they work hard to minimize advertorial-intensive presentations/speakers.  These free events have just entered their third year and have recently added nine developing Islamic financial markets to their list of cities being visited - check the roadshow venues and dates here.

IFN Roadshow - 2010 Schedule

LinkedIn Discussions - Highlights of 2009

Looking back at 2009 we thought useful to highlight some of the most heated discussions and lengthy debates which we have had over the year within our Linkedin group.

Here we have picked some of the most extensive and interesting discussions which are worth a review:

Shariah Compliant Structures:

- Murabaha Contracts - Shariah Compliance Revisited

- The use of LIBOR as a Benchmark by Islamic Banks

- Should you be able to pay for a promise (Wa'd)?

- Islamic Alternatives to LIBOR

- The Malaysian Islamic Bonds Model

Industry-related Issues:

- Why Islamic Finance Prohibits Short-selling...

- Islamic Finance, English Law and UK Courts

- The Employment of Shariah Scholars by Businessmen

- The role of Derivatives in Creating the Financial Crisis

- Does Islamic Finance Need a Voice?

LinkedIn Discussions - Highlights of 2009

Islamic Finance: What leaders do differently

This piece is far more concerned with branding and positioning of Islamic banks in the context of competing side by side with conventional institutions. Not surprisingly items such as product innovation and 'quick' Shariah approval process are prime considerations, among other things. The question remains - does the need to compete vis-a-vis conventional players makes IFIs drift away from their original business model, instruments, and practices??

Islamic Finance: What leaders do differently
Lessons learned from Islamic financial institutions in the GCC

Dr. Helmut Schulte-Croonenberg and Alexander von Pock

A. T. Kearney

Islamic Finance: What leaders do differently

KPMG: Growth and Diversification in Islamic Finance

A broad overview by KPMG on Islamic finance, worth noting Section 3 which outlines a variety of barriers to entry - amongst them the ever increasing gap in Human Capital and (very current in recent headlines) the need for regulatory and legal frameworks. Also page 13 talks about Women in Islamic Finance, highlighting various industry voices on the challenges faced. While this particular piece dates back t0 2007, it seems that many of the key challenges are still present to this day and some remain unaddressed.

Growth and Diversification in Islamic Finance

KPMG International

2007

KPMG: Growth and Diversification in Islamic Finance

Islamic Finance - Opportunity for Long Term Growth

Here is a recent paper from State Street which gives a brief introduction of Islamic finance but - most importantly - gives an overview of various key areas of development (funds, sukuk, takaful, new products, etc). It is also evidence of increased awareness from the part of conventional financial institutions from across the globe.

Islamic Finance - Opportunity for Long Term Growth

State Street - Vision Series

February 2009

Nice quote: "What makes Islamic finance uniquely different — and uniquely global — is the common bond that its Muslim customers share: their religion, whose moral lessons are shared through the teachings of the Koran, but whose legal principles and codes are governed by Shariah, or Islamic law ... While Shariah’s faith-based principles continue to hold strong appeal for Muslims, the pragmatic benefits arising from its application are becoming increasingly attractive to non-Muslims as well, particularly during the current economic crisis and the intense focus on risk management we are witnessing."

Islamic Finance - Opportunity for Long Term Growth

Understanding Islamic Finance: Local Innovation and Global Integration

Understanding Islamic Finance: Local Innovation and Global Integration
Shamshad Akhtar, Zeti Akhtar Aziz, Robert W. Hefner, Nik Norzrul Thani, Angelo Venardos, Frank E. Vogel and Ibrahim Warde
The National Bureau of Asian Research

"What is Islamic finance (IF)? Islamic finance has recorded dramatic growth over the last decade or so, with a presence in more than 75 Muslim and non-Muslim countries and total financial assets now estimated to exceed $1 trillion. With the integration of IF and Islamic banking into the global economy, IF’s appeal as a market for and source of global capital is increasing. The industry’s rapid growth is marked by increases in Islamic financial products and services, the development of the industry’s regulatory frameworks, and enhanced international linkages.

To gain a better understanding of the phenomenal rise of IF in general, of Southeast Asia’s particular role as an epicenter for IF innovation and development, and of the opportunities and challenges facing IF as an economically viable global financial industry, Asia Policy presents insights from a panel of senior finance officials, industry practitioners, and scholars."

Understanding Islamic Finance: Local Innovation and Global Integration

Opalesque Islamic Finance Intelligence - Free Archive

Reminder to sign up here for Opalesque Islamic Finance Intelligence (OIFI).

OIFI is produced by leading alternatives publisher Opalesque Ltd. and Amsar Partners LLP (select "Opalesque Islamic Finance Intelligence" for our FREE monthly premium subscription, and "Islamic Finance Briefing" for FREE daily news updates).

For more information on Opalesque Islamic Finance Intelligence visit the Opalesque site, and also please feel free to check their online archive from Opalesque Islamic Finance Breifing for a historical data bank of industry news as well as back issues, testimonials page and other useful information.

Opalesque Islamic Finance Intelligence - Free Archive

Islamic Finance: Global Trends & Challenges

Islamic Finance: Sustainability and Challenges
Shamshad Akhtar
The National Bureau of Asian Research

"Islamic finance must be recognized as a parallel system that will augment, and be augmented by, a deeper knowledge and experience of the conventional financial system. As such, the industry’s long-term growth and sustainability depend on: (1) how Islamic finance interfaces with and benefits from complementing and supplementing the conventional system, and (2) how Islamic finance adapts and conforms to international regulations and supervision while remaining aligned with the technicalities and nuances of Islamic financial instruments and their associated risks. Properly exploiting the unique features of Islamic finance with appropriate adaptability, and without compromising principles of sharia (Islamic law), will be critical to the growth and promising future of the Islamic finance industry.

Touching on some of these debates, the essay begins by addressing trends in Islamic finance, then turns to lay the case for the sustainability of Islamic finance, and concludes with a discussion of some key prospects and challenges facing the industry."


Enhancing Interlinkages and Opportunities: The Role of Islamic Finance
Zeti Akhtar Aziz
Bank Negara Malaysia

"Five years ago discussions regarding Islamic finance focused on the challenges of developing an efficient and robust Islamic financial system. Today the Islamic financial system has evolved significantly to become a dynamic and competitive form of financial intermediation in the global financial system. This essay addresses the transformation and innovation that have taken place in these five years in both the national and international Islamic financial systems and concludes with an examination of necessary elements for sustaining the systems’ growth. Most significant have been the development of the Islamic financial markets, the growth in the range of financial products and services, the increasing significance of the international dimension of Islamic finance, the development of an international Islamic financial architecture, and the enhanced international interlinkages that have been brought about by these developments."

Islamic Finance: Global Trends & Challenges

Opalesque Islamic Finance Intelligence

Opalesque launches Islamic Finance Intelligence as industry faces great debates in a number of fronts

Setting a new standard: 19 pages of intelligence.

Welcome to the first issue of Opalesque Islamic Finance Intelligence (OIFI), designed with a practitioner approach – focused on precise and relevant content for investors, product manufacturers, and fund managers of this truly global community. This free, monthly publication complements Opalesque Islamic Finance Briefing (our daily industry news briefing) and leverages on the success of the Opalesque family of specialized publications (Alternative Market Briefing, A Square, Roundtable Series, etc).

The industry faces great debates in a number of fronts – from market gaps, distribution networks, standardisation initiatives, risk & compliance concerns, to structural question marks. These issues are faced by both current industry players as well as new entrants. A case in point is the recent debate over Tawarruq, with Nikan scrutinizing the matter in our Featured Structure section.

The range of topics is vast - Islamic finance products now extend to all asset classes (from exchange traded funds to private equity vehicles), the industry is ever-evolving in its core markets (the GCC and Southeast Asia) and product cross-pollination with conventional fund houses is an emerging trend. Our maiden edition further provides an overview of Islamic contract law - detailed by Khalil in our Editorial Column. We also debate over the outputs of the transaction: practitioners share their thoughts in our Discussion Forum on the use of conventional benchmarks (i.e. LIBOR) by Islamic banks, whilst Toby Birch of Birch Assets Ltd scrutinizes the industry pitfalls in our Allocator Interview.

Market awareness has skyrocketed in recent years - experts once touted the existence of 60 Islamic equity funds whereas the industry now boasts a universe of well over 700 Shariah compliant investment products. Growth projections usually land between 15 to 20 percent per annum, yet some of the largest Muslim countries (i.e. Indonesia, Egypt and India) remain untapped. A comprehensive product range is unheard of (in stark contrast to the conventional world), yet this bestows the industry with endless prospects. Bernardo sheds light on these by analyzing Islamic fund of funds in our Industry Tables section.

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(Sorry for the Marketing Spiel, but we wrote it and its free).

Comments, as always, are welcome! JAK!

Opalesque Islamic Finance Intelligence