A Chartered Accountant and Tax Administrator, Mr. Bicci Alli has said that the federal government as well as states cannot shun Islamic financial instruments whose market is valued at over $2.6 trillion, because it has the capability to bridge the infrastructure deficit in the country.
The federal government is presently looking for financial and legal advisers and trustee firms to organise its first Islamic bond in the domestic market, the Debt Management Office (DMO) said on Monday. Nigeria is working on a debut sovereign sukuk but has yet to determine the size of a potential deal. Issuance of a sovereign sukuk is part of a plan by Nigeria’s debt office to develop alternative sources of funding and to establish a benchmark curve.
According to the Islamic Finance Development Indicator (IFDI), global Islamic finance development declined to 8.8 in 2016 from 9.9 in 2015. The report was prepared by Thomson Reuters and the Islamic Corporation for the Development of the Private Sector (ICD) and was released at the World Islamic Banking conference (WIBC) 2016. Malaysia, Bahrain and the UAE continue to dominate the IFDI report for the 4th consecutive year. However, Malaysia posted a slight decline in its overall IFDI performance in 2016. Outside of the top 15, noteworthy emerging countries that have moved up the IFDI rankings are South Africa, Morocco, Tanzania, Japan and Russia. Among the regions with high potential in Islamic finance is West Africa. Unprecedented oil price storm hindered Islamic finance performance, but not asset growth. Despite lower financial performance, Thomson Reuters maintains a positive outlook for the industry projecting Islamic finance assets to reach $3.5 trillion by 2021.
The sukuk market is struggling to recover from last year’s dip in issuance and it could take years for supply to return. According to a recent Thomson Reuters report, issuance of sukuk is down 18% for the first nine months this year compared with the same period last year, while the year-end figure could exceed $50 billion. Issuance is estimated to gradually recover over the next few years to $54 billion in 2017 and $59 billion in 2018, but this is well below the record $134 billion seen in 2012. This is largely due to the lasting effects of Malaysia’s central bank decision to stop issuing short-term sukuk in 2015. The survey found that Sukuk still lack active secondary markets while governments have yet to incorporate them into their debt management strategies, steps which could increase their appeal.
According to the Thomson Reuters Islamic Finance Development Report 2016, Bahrain leads the GCC’s Islamic finance development for the fourth consecutive year. The report is jointly produced by Thomson Reuters and the Islamic Corporation for the Development of the Private Sector (ICD). Bahrain ranks first globally in terms of Governance due to its well established regulatory environment and governance mechanisms. The regulations cover Islamic financial institutions including Islamic asset management and Sukuk. Bahrain is among the top ten countries for the other indicators as well. For the Knowledge indicator, its Islamic finance ecosystem is supported by 17 providers offering Islamic finance related education including universities and institutions. Meanwhile, its Islamic financial institutions continue to contribute socially, with US$ 18.5 million charity, zakat and Qardh al Hasan funds disbursed in 2015.
Thomson Reuters has released the findings of its fifth consecutive Sukuk Perceptions and Forecast study. Despite a bleak 2015, market players remained hopeful for a robust year ahead. Core markets have adapted to ongoing low oil prices, while apprehension over expected global interest hikes has begun to subside. However, the decision from Bank Negara Malaysia (BNM) to cut short-term Sukuk issuances continues to dampen Sukuk supply. Total Sukuk issued in the first 9 months of 2016 dropped further by 18.46% to $39.8 billion from $48.8 billion for the same period in 2015. According to Thomson Reuters' Managing Director, Nadim Najjar, the global Sukuk market continued to drop in terms of volume and value during 2016. The report found that both potential demand and supply of Sukuk are expected to grow, with demand substantially exceeding supply until 2021.
Abu Dhabi Islamic Bank (ADIB) and Thomson Reuters have announced the three finalists for their Ethical Finance and Innovation Challenge and Awards (EFICA). The three finalists will present their entries at the fourth edition of the awards ceremony that will take place on 26th of October, 2016 in Dubai. The Ethical Finance Initiative Award carries a $100,000 prize, and is for innovative solutions or initiatives that promote ethical practice in the financial services industry. The three finalists are: EthisCrowd, as the world’s first Islamic Real Estate Crowdfunding platform, LaunchGood, as the world’s leading crowdfunding site for Islamic Finance and the Islamic Finance Institute of Southern Africa’s micro finance initiative in Indonesia. The EFICA Lifetime Achievement Award will also be presented at the event.
A report titled 'Developments and opportunities in Islamic-themed television and online video content' identifies 188 Islamic-themed television and online channels globally. The report is produced by Thomson Reuters and Dubai Islamic Economy Development Centre (DIEDC) in partnership with DinarStandard. It identifies the main Islamic-themed broadcast media markets in the Organization of Islamic Cooperation (OIC) 57 member countries. OIC markets generated a total of $10 billion in advertising revenue during 2015. According to Abdulla Mohammed Al Awar, CEO of DIEDC, this report is proof of the sustainability of Islamic values that endure the test of time. Haroon Latif, director of Strategic Insights at DinarStandard, said that Muslim viewers were a key customer segment in the Culture and Recreation sectors. He added that there were significant untapped opportunities across genres in Islamic-themed media.
If we look back at the emergence of the Muslim Lifestyle markets as a global phenomenon, we can see an interesting pattern developing. From 2004 - 2007, Malaysia was the epicenter of the Halal movement, bringing the terms ‘Halal market’ and ‘Halal industry’ into the global business vocabulary. Bidding to become a global Halal hub, the development of their Halal food sector made Malaysia a role model for other countries looking to position themselves in this fast-growing marketplace. Abdalhamid David Evans, Founder, HalalFocus.net/ImaratConsultants.com, will be speaking about this topic at the Muslim Lifestyle Expo 2016 in Event City, Manchester on the 30 October 2016.
According to a new report by Thomson Reuters, Islamic finance assets grew by 10% to reach $2 trillion in 2015. Islamic banking represented 73% of these assets, followed by sukuk which represented 17%. The increase in assets was driven by strong growth in all sectors - Islamic banking, takaful, outstanding sukuk and net value of Islamic funds. Islamic finance assets are projected to grow to $3.2 trillion by 2020, with Islamic banking reaching $2.6 trillion. The report added that the sukuk market on the other hand has struggled in the past couple of years due to the global economic uncertainty. Total issuance is expected to be around $70 billion by end of 2016.
A report launched by Thomson Reuters on Friday -- called "Indonesia Islamic Finance: Prospects for Exponential Growth" -- says the country's shariah finance industry recorded 559 trillion rupiah ($42.3 billion) in assets as of 2014, merely 3% of the country's financial industry assets overall. However, while the total financial sector's assets grew by 42% during the 2010-2014 period, assets for shariah finance surged by 139%. Boosted by government infrastructure spending and road maps for development of shariah finance, Indonesia's Islamic finance sector is expected to record double growth over the next five years.
Thomson Reuters and the Toronto Financial Services Alliance (TFSA) have unveiled a major study, the Canada Islamic Finance Outlook 2016, during the World Islamic Banking Conference (WIBC) held in Bahrain. Canada is looking to position itself as the regional hub for Islamic finance in North America. Its main competitor in the region, the United States, is a much larger market overall, but Canada has a proportionately larger Muslim population. This advantage is coupled with an arguably more favourable federal regulatory regime and an outward looking orientation that is potentially more favourable and conducive to the growth of Islamic finance.
Thomson Reuters and Islamic Corporation for the Development of the Private Sector (ICD) have released the key findings of the Islamic Finance Development Indicator (IFDI) Report 2015. The report examines the key statistics and trends across five indicators that are deemed to be significant for measuring the development of the US$1.8 trillion Islamic finance industry. These include Quantitative Development, Knowledge, Governance, Corporate Social Responsibility and Awareness. According to the report, Malaysia leads IFDI again while GCC countries continue to dominate the top of the rankings for a third year in a row.
Thomson Reuters in partnership with Barwa bank released today the findings of its fourth consecutive Sukuk Perceptions and Forecast study. A buoyant 2014 had sukuk market players optimistic for another robust year but market uncertainty, especially with the drop in oil prices and the expected increase in global interest rates, have dampened activity in the market. The global sukuk market in 2015 welcomed significantly fewer new issuers compared to 2014. Total sukuk issued in the first 9 months of 2015 dropped a drastic 38.6% to $48.8 billion from $79.5 billion for the same period in 2014. The sukuk papers were a lso issued in 12 currencies in first nine months of 2015 compared to 16 over the same period in 2014.
Global Islamic finance assets had an estimated value of $1.8 trillion in 2014 and are expected to almost double by 2020 to reach $3.2 trillion, according to the ICD Thomson Reuters Islamic Finance Development Indicator.
The projections come ahead of the 2015 World Islamic Banking Conference (WIBC 2015), which will be hosted by Thomson Reuters, the world's leading provider of intelligent information for businesses and professionals, and The Islamic Research and Training Institute (IRTI), an affiliate of the Islamic Development Bank Group.
56 major Islamic bond issues in the global pipeline.
The Thomson Reuters Global Sukuk Index is at 117.67354 points, down from 118.24280 at the end of last month but up from 115.79726 at the end of last year. The Thomson Reuters Investment Grade Sukuk Index is at 115.75520 points against 116.64293 at end-October and 113.69014 at end-2014.
The global Islamic finance assets are projected to grow to US$3.2 trillion (RM13.6 trillion) by 2020, says Thomson Reuters, the world’s leading provider of intelligent information for businesses and professionals.
Its Head of Islamic Finance, Mustafa Adil said Islamic finance was considered the most developed sector within the various pillars of the Islamic economy and its growth in the global industry was broadly measured by the value of Islamic finance assets.
As global acceptance of Islamic finance continues to grow, he said more corporates and non-Muslim sovereigns were announcing Islamic finance initiatives such as ethical finance or Shariah-compliant regulations, as well as sukuk issuances.
The International Shari’ah Research Academy for Islamic Finance (ISRA) and Thomson Reuters, the world's leading provider of intelligent information for businesses and professionals today launched an inaugural joint publication on Islamic Commercial Law Report 2016.
The Islamic Commercial Law Report 2016 was launched by the Deputy Minister, Prime Minister’s Department YB Senator Dato’ Dr Asyraf Wajdi Dato’ Dusuki at the International Shari’ah Scholars Forum (ISSF), organised by ISRA and the Islamic Research and Training Institute (IRTI) in Westin Hotel, Kuala Lumpur on 3 November 2015.
The Islamic finance industry has witnessed exponential growth over the last three decades, and has become one of the fastest growing segments of the global financial industry with estimates of the current market size ranging from $1.66 trillion to $2.1 trillion. One key factor that has contributed to this progressive development is the flexible nature of Islamic commercial law, which has imbued Islamic finance with the same core characteristic of flexibility, as the legal maxim says: “the original ruling in Islamic financial transactions is permissibility”.
Kuwait will host the World Islamic Financing Conference, organized by Kuwait Central Bank (CBK) and the International Monetary Fund, with the participation of the IMF Center for Financing and Economy in the Middle East and Thomson Reuters as strategic partner for knowledge.
The conference will be held on November 11, 2015 under the patronage of His Highness the Amir Sheikh Sabah Al-Ahmad Al-Jaber Al-Sabah. This announcement was made by CBK Governor Mohammad Al-Hashel and said the conference will see high ranking international attendance of decision makers headed by Christine Lagarde, Director General of IMF and senior IMF employers and experts around the world.
Several finance ministers, Central Bank Governors, their deputies and representatives in many countries are expected to attend the event. There will also be presence of International Economic Establishments that belong to the United Nations and Regional Organizations in addition to experts and academics.
The Thomson Reuters Global Sukuk Index is at 118.24280 points, up from 115.79726 at the end of last year. The Thomson Reuters Investment Grade Sukuk Index is at 116.64293 points against 113.69014 at end-2014.
Dubai Silicon Oasis Authority (DSOA) and Thomson Reuters, with support from the Dubai Islamic Economy Development Centre (DIEDC) released the 'Digital Islamic Economy Report' for 2015, in collaboration with DinarStandard. The report serves as a precursor to the second edition of the Global Islamic Economy Summit (GIES) that will be held from October 5-6 in Dubai, UAE. Among its key findings, the report estimates that the overall value contributed by Muslim consumers worldwide to the global digital economy in 2014 stood at US$107 billion, representing 5.8% of the total global digital economy. The report focuses on a new and a more specialized area of Digital Islamic Consumer Services.