IslamicFinance.de

Australia could be a regional leader in Islamic finance but tax issues are holding the sector back domestically. Talal Yassine, the managing director of Crescent Wealth, said that Australia needed to seize the opportunity of being so close to the world's leading Islamic economy, Malaysia. He said Australia's financial industry should follow the lead of the agricultural industry, which decades ago made the decision to dominate halal exports. Australian Muslims spent $US5.3 billion ($A7.8 billion) on the lifestyle sector in 2018, including $US1.94 billion ($A2.9 billion) on media and recreation and $US1.74 billion ($A2.6 billion) on food. With a growing Muslim middle class, Yassine sees a massive opportunity waiting to happen.

Talal Yassine, founder of Islamic investment fund Crescent Wealth, believes Australia's Muslim population offers growth potential for sharia-compliant financial products. Crescent Wealth's criteria exclude investing in banks or other financial stocks as well as companies that have investments in alcohol, gambling, pornography, arms or the production of pork. They also consider the companies' debt-to-asset ratio, receivables outstanding and levels of cash or liquid assets. Yassine believes Crescent Wealth will attract funds from the vast Muslim community in Malaysia, Indonesia and, potentially, China.

Australian investors are expected to involve in one of the most rapidly growing asset classes soon. A new tie-up between Australia's Islamic fund manager and Europe's largest Islamic bank is on the way. According to plan, the Crescent Islamic Cash Management Fund will allocate up to half of its assets to investment-grade sukuk at the beginning of 20113.

Read more on: http://www.theaustralian.com.au/business/wall-street-journal/manager-to-...