Role of Islamic Finance in Supporting the Halal Industry and its Services Dr. Asyraf Wajdi Dusuki Head of Research Affairs, International Shariah Research Academy for Islamic Finance (ISRA) Malaysia The First Gulf Conference on Halal Industry and its Services 24-26 January 2011 Holiday Inn Hotel, Al-Salmiyah, State of Kuwait
دور التمويل اإلسالمي في دعم صناعة الحالل وخدماته
د .أشرف وجدي الدسوقي رئيس شؤون البحث العلمي ،األكاديمية الدولية للبحوث الشرعية للتمويل اإلسالمي ،ماليزيا مؤتمر الخليج األول لصناعة الحالل وخدماته 26-24يناير 2011 فندق ھوليدي إن – السالمية – دولة الكويت
Global Outlook of Islamic Finance
The First Gulf Conference On Halal Industry and its Services
Why Islamic Finance?
Shariah Compliant Framework
Salient Features of Islamic Finance
Various Forms of Islamic Contracts
Islamic Asset Classes
Role of Islamic Finance in Halal Industry
Emerging interest on Islamic finance as viable alternative to the global financial system … Germany
Gov’t sets an objective to ‘entrench London as a global gateway for Islamic finance
Saxony-Anhalt state issued government sukuk First Islamic bank to operate in 2010
Turkey Announced IFC Istanbul in Sep ’09 with focus includes interest-free Plans to issue sovereign sukuk, amend financial business tax law on IF Iran Bahrain Qatar Pakistan France Malta Saudi Arabia UAE Kuwait Thailand Passed rules/regulations to Plans to position Malaysia support Islamic finance as Islamic finance Sudan activities hub for the Mediterranean In process of licensing Indonesia Islamic banks Jordan Made fiscal & legal adjustment for IF Plans to tap sukuk market to transaction i.e. taxation finance its deficit Singapore guidelines on sukuk & Established first Islamic bank murabaha Introduced tax neutrality for Islamic finance
South Korea Parliament expected to pass the law related to offering of tax waiver on foreign investors’ interest income from sukuk issued
5 FSA-approved Islamic banks and Takaful operators
Aspiring to be centre for Islamic finance
Launched Islamic ETF
Japan Law passed allowing banks to do Islamic finance Hong Kong Aims to become Islamic finance gateway to China Plans to issue sovereign sukuk Hang Seng Islamic China Index Fund in 2007
Brunei Aim to become Islamic financial services hub for Asia
Muslim-majority countries offering Islamic finance (IF) Non-muslim countries starting to offer IF
Courtesy of Bank Negara Malaysia
Islamic finance… fastest growing segment in global financial system… Islamic Assets under Management
USD750 billion & expected to hit USD1 trillion by 2010 Average growth rate of 15-20% p.a.
Islamic Mutual Funds
USD300 billion Average growth rate of 23% p.a.
USD7.2 billion Growth rate of 13% p.a.
Global Market Capitalization of Dow Jones Islamic Index
Shariah Compliant Global Funds
Global Outstanding Sukuk
USD107 billion Average growth rate of 22% p.a.
Number of Islamic Financial Institutions (IFIs)
> 600 IFIs in the world
Enormous potential in Islamic Finance… Sources: McKinsey, The World Islamic Banking Competitiveness Report 2007-08, “Capturing the Trillion Dollar Opportunity”; PriceWaterHouseCoopers, Islamic Finance News, IFSB & National Authorities; Islamic Banker Research Group; Islamic Finance & Insurance & Investor Offshore Review
Demographically, Muslims population are huge.. research s