Press Release

#DIFC #Wealth and #Asset Management Report 2017

DIFC published a report about the Wealth and Asset Management industry.

From the abstract:

"Continued growth in Islamic asset management

Islamic asset management [IF: Islamic mutual fund business only] continues to grow, at a moderate CAGR of 2.44% since 2012 to reach US$58.89 billion in AuM by the end of 2016, despite the economic challenges in the GCC caused by falling oil prices. The industry is still highly concentrated in Saudi Arabia and Malaysia, however.

Shariah-compliant investments have strong demographic demand but remain under-utilised. Targeting different
market sectors and regions has been largely ineffective, due mainly to poor marketing strategies. Inadequate government support and recent market conditions have also impaired market performance.

Despite developments in Islamic finance and growth in Islamic assets, Islamic wealth management remains a niche market, and with local services still largely underdeveloped, most Middle East investors continue to invest overseas. Islamic pension funds’ potential scarcely tapped Pension funds in particular present one way to add scale

Most #S&P and Dow Jones Islamic #Indices Outperform Conventional Benchmarks in 2017

Michael Orzano, head of equity indices, S&P Dow Jones Indices: Most S&P and Dow Jones Islamic Indices Outperform Conventional #Benchmarks in 2017

Most S&P and Dow Jones Shariah-compliant benchmarks outperformed their conventional counterparts year-to-date through June 28, 2017 as Financials – which are largely absent from Islamic indices – have lagged the broader market, and Information Technology and Health Care – which tend to be overweight in Islamic Indices – have been the two top performing sectors so far this year.

Global equity markets added to strong Q1 gains as the Dow Jones Islamic Market World and S&P Global BMI Shariah Indices gained 13.6% and 13.3%, respectively for the year. Each index outperformed the conventional S&P Global Broad Market Index (BMI) by about 2.5%. In the U.S., the S&P 500 Shariah gained 10.4% for the year, outperforming the S&P 500 by 1.4%. Regional Dow Jones Islamic Market benchmarks for Asia-Pacific, Europe and Emerging Markets all beat their conventional counterparts by meaningful margins as well.

Asia-Pacific, Europe and Emerging Markets Lead Global Equity Markets Higher

Is #disruption by #FinTech a social good?

Support Disruption for Good (SDG) #Challenge will showcase breakthrough models that also have material social impact

Zurich, Switzerland, February 22, 2017 – The RFI Foundation, in partnership with the Swiss Finance + Technology Association, Finocracy and the Responsible Finance & Investment (RFI) Summit partners, launched the Support Disruption for Good (SDG) Challenge to find the most promising ethical, responsible or Islamic FinTech innovation and connect them to the leading institutions in the responsible finance industry.

The SDG Challenge opens today and will remain open until March 17. All applicants will be judged against a transparent set of criteria by an independent judging panel drawn from across the responsible finance and FinTech industry. During the review process judges will evaluate the ability of each entrant to effectively scale, contribute to financial inclusion, contribute to the UN Sustainable Development Goals while being financially sustainable.

#Zurich: #Responsible #Finance & Investment Summit 3-4 May 2017

Summit will explore intersection of #fintech, #ESG and #Islamicfinance. #RFISummit17

January 24, 2017, Zurich, Switzerland –

Bringing together a diversity of perspectives is critical for continuing the growth occurring within responsible finance. On this premise, the Responsible Finance & Investment Summit 2017 will convene in Zurich, Switzerland from 3-4 May 2017 around the theme “Building Bridges, Expanding Impact”.

Recent estimates from industry stakeholders show continued growth in responsible finance assets in many geographies and sectors. Responsible investment in Europe grew by 42% during the past 2 years, while in the U.S., assets grew by 33%. In Islamic finance, which has a global presence with a significant presence in Europe, the Middle East and Asia, growth in the last 2 years has been 21%. Identifying actionable areas for collaboration will support continued growth towards a more sustainable financial system.

Gassner's picture

Securities Regulation: USA-SEC Adopts Rules to Permit Crowdfunding

Dear Readers,

The US Securities Exchange Commission has issued recently press release regarding equity crowd funding and its regulation:

"Washington D.C., Oct. 30, 2015 —
The Securities and Exchange Commission today adopted final rules to permit companies to offer and sell securities through crowdfunding. The Commission also voted to propose amendments to existing Securities Act rules to facilitate intrastate and regional securities offerings. The new rules and proposed amendments are designed to assist smaller companies with capital formation and provide investors with additional protections."

Equity funding is discriminated threefold in finanical markets despite most people assume that a market economy would leave choices to market participants. The three key problems are: 1) Risk weighting of equity finance a multiple higher than debt finance, thus making it unattractive for banks to provide equity finance and consequently destabilizing economies with excess debt. 2) Tax deductibility of interest expense. 3) Entry barriers to the securities markets to raise equity.

Gassner's picture congratulates KuveytTürk Germany for obtaining full banking license

Kuveyt Türk Participation Bank has been licensed by the Federal Financial Supervisory Authority (BaFin) to offer banking services in Germany. Thus, the first bank based on an interest-free Islamic business model is licensed in Germany.

Kuveyt Türk has obtained its license from the Federal Financial Supervisory Authority (BaFin) to provide fully-fledged banking services in Germany according to the interest-free Islamic banking principles. Kuveyt Türk is the first Islamic bank that has been fully licensed to operate its deposit and debt business in Germany. With this license, Kuveyt Türk is the pioneer that introduces the Islamic banking model in Germany.

KT Bank AG with headquarters in Frankfurt am Main and as a 100 percent subsidiary of Kuveyt Türk Participation Bank, will start to offer its reliable, high-quality, fast and user-friendly services from July 01, 2015 onwards. KT Bank AG will provide its private and commercial clients with products and services according to interest-free Islamic banking principles.

“KT Bank AG is an ethical, innovative and socially responsible bank”

5th Halal Expo in Moscow

The Halal-industry Expo will be the largest in Russia and Eastern Europe and will take place from 5 – 8 June, 2014. The Russian Muftis Council is organizer of the exhibition. The Expo will probably bring more than 200 companies together from all over the world. With Muslim numbers increasing there is a definite growing demand for Halal products and services. These are not only popular among Muslims. Halal products are well known for their quality. Besides that, sphere of Halal services bases on a mutual respect and honest cooperation. The Moscow International Halal Exhibition is a major event in the industry and a platform for experts and businesses.

IIFM and ISDA Launch Mubadalatul Arbaah (MA) Profit Rate Swap (PRS) Product Standard

The International Islamic Financial Market (IIFM) and the International Swaps and Derivatives Association, Inc. (ISDA) are pleased to announce the launch of the ISDA/IIFM Mubadalatul Arbaah (Profit Rate Swap) product standard to be used for Islamic hedging purposes.

The Mubadalatul Arbaah (MA) standard follows on from the “ISDA/IIFM Tahawwut (Hedging) Master Agreement” and provides the industry with a framework for Islamic risk mitigation. The launch of the Tahawwut Master Agreement as the template for Shari’ah-compliant risk management was officially announced at a press conference hosted by Central Bank of Bahrain in March 2010.



Qatari Aurum will be launching its first large-scale foray into the world of Technology and Design during an annual gathering of other GCC-based investors and private equity houses in Paris during July this year. The newly¨established group, comprising high net-worth venture capitalists from Qatar, is yet to launch formally but has already set about making waves in an industry reserved for Silicon Valley start-ups and traditionally large-scale US private equity houses. It is expected that the Group will announce its inaugural acquisition of equity in a globally established internet start-up at the Capital & Projects Exchange, Paris, France, July 2012.

The focus of the group is toward bringing a wealth of technology know-how in the internet media and software design services to the GCC region. There is a course laid out to use this investor insight in gathering the choicest design and development houses locally within the region and injecting them with world-class expertise, fuelling a technology-drive unsurpassed in recent times.

The Shariah Report 2012 profiles leading Shariah scholars

Report offers comprehensive reference material about Shariah scholars in the Middle East and around the world as Islamic Finance industry assets top US$1 trillion. Failaka Advisors, in partnership with Paris-based Grapes Market Research & Advisory, has released the second edition of The Shariah Report.

The 2012 version of the report is the world’s first comprehensive report on Shariah scholars, with detailed profiles of more than 120 of the top scholars in the Middle East and from around the globe highlighting Islamic Finance’s global reach.

“Spanning from East to West, The Shariah Report profiles Shariah Scholars from Asia, the Middle East, Africa, Europe & North America, providing insight into the depth and breadth of the industry”, added Anne-Sophie Gintzburger, Founding Director at Grapes. Each scholarly profile comprises country of birth, academic qualifications, a cross-referenced list of institution where each scholar serves as a Shariah Board member, and a list of their important works on Islamic finance.

National Treasury Invites Proposals for Islamic Bond Instruments (SUKUK)

The National Treasury invited on 6th December banking institutions to submit proposals for the provision
of advisory services for the structuring and issuance of a government Islamic bond (“Sukuk”) in
the local and international markets.
The invitation is in line with the National Treasury’s intention to diversify its funding and
investor base.
“There is a great interest in the SUKUK market and this is the first step towards meeting the
growing appetite for government backed Shariah compliant investments” said Lungisa Fuzile,
Director General of the National Treasury.
Interested service providers are expected to submit proposals by close of business (RSA time)
on or before 21st December 2011. Shortlisted bidders will be informed by 20th January 2012.

Further Information:

Request for Proposal (RFP):

Annexure to RFP:

Global leaders point way to economic recovery at UN summit

Global leaders point way to economic recovery at UN summit

Gordon Brown, Mary Robinson and global CEOs call for sustainable financial sector reform

Washington D.C., 20 October 2011 – With economic recovery topping the United States and global political agenda, a group of CEOs, major investors and bankers together with former United Kingdom Prime Minister Gordon Brown and President of Ireland Mary Robinson called for a far-reaching reform of the global financial system at a summit which ended in Washington D.C. today.

Amid a growing wave of protests highlighting economic concerns in countries from the US to the UK, Japan and Greece, more than 500 senior finance executives and policy-makers from around the world met at the United Nations Environment Programme Finance Initiative Global Roundtable (UNEP FI) summit to find sustainable solutions to tackle the drivers of market volatility and address the deepening rift between the rich and the poor.

Shariah and house purchase in Malaysia - academic article

Despite the existence of Shariah advisory councils, Islamic banks and financial institutions in Malaysia may be failing to carry out their duties. An article in this month’s JSSH investigates transactions on purchasing houses specifically on transactions involving houses pending completion using the current practice of ‘sale by deferred payment’ also known as Bay’ Bithaman al-Ajil (BBA).

Islamic banking gained foothold in Malaysia, with the establishment of Bank Islam Malaysia Berhad in 1983 and facilities have since expanded. Products include Wadiah - where the bank acts as the safe-keeper of deposits but may provide returns to the depositors as a gift; Murabahah, or partnership and equity financing; Ijarah – leasing; Musharakah – partnership and Bay’ Bithaman al-Ajil – sale by deferred payment. Nuarrual Hilal Md. Dahlan and Sharifah Zubaidah Syed Abdul Kader Aljunid looked at sale and purchase and loan agreement to see if they comply with the requirements of the Islamic Law in protecting stakeholders and to provide practical suggestions to improve the existing practice.

Islamic Banking and Finance in North Africa

In its new publication, Islamic Banking and Finance in North Africa, the African Development Bank assesses the state of Islamic banking in the region and explains why its use has been limited. The report considers the future potential of Islamic finance, including its possible alignment with North Africa’s development goals, particularly its ability to increase the diversification of funding sources.

The report takes into consideration the effect of Islamic banking’s focus on the equitable distribution of risk and returns between suppliers and users of funds. Islamic Banking and Finance in North Africa goes further by exploring whether Islamic-style finance contracts could contribute to the development objectives of North African countries.

full report for free download:

Call for Papers: Special Issue on Quantitative Islamic Finance

Submission deadline 15 September 2011

Palgrave Macmillan is pleased to announce a call for papers for the Journal of Derivatives & Hedge Funds

For Islamic banking to grow further and develop there are many challenges relating to financing instruments, market structure and market regulation. The aim of the special issue is to provide a central platform and communication channel for researchers, academics, business leaders and industry practitioners relating to Islamic Banking. The key contextual challenges in the Islamic finance industry today include the innovations and developments at the leading edge of the field, and the long-term impact, scope and authenticity of these ideas in the context of an Islamic community and way of life. View full details at:

Topics of interest include, but are not limited to:

- The Shari'ah requirements in Islamic banking and risk identification.
- Current practices of asset management and portfolio management in Islamic banking
- Need of financial innovation in Islamic banking.
- The impact of the Basel Accords on Islamic banking
- Islamic banking and corporate governance

Pre-summit event at 8th Annual IFSB Summit about liquidity management

Pre-summit event at 8th Annual IFSB Summit to discuss developments in liquidity management for the Islamic financial services industry

Kuala Lumpur, 15 April 2011 – The Islamic Financial Services Board (IFSB) is organising its 8th Summit "Enhancing Global Financial Stability: Challenges and Opportunities for Islamic Finance" on 10-13 May 2011 in Luxembourg. Banque centrale du Luxembourg is hosting the Summit. Three pre-Summit events will be held on 10 - 11 May 2011 at the Chambre de Comemrce Luxembourg. These are:

1. Workshop on Islamic Finance and the IFSB Standards for Institutions offering Islamic Financial Services and Islamic Capital Markets;
2. Country Showcases by Malaysia and Luxembourg; and
3. Special Session on Liquidity Management in the Islamic Financial Services Industry.

Workshop on Islamic Finance and the IFSB Standards for Institutions offering Islamic Financial Services and Islamic Capital Markets, 10 May 2011

Muslim Philanthropy Awards [2011] Announced at World Congress of Muslim Philanthropists Banquet

Dubai, United Arab Emirates, March 23, 2011 – The Muslim Philanthropy Award winners were announced at the 4th annual banquet of the World Congress of Muslim Philanthropists in Dubai, UAE.

Every year, the Muslim Philanthropy Award honors an individual, a grantmaking institution and a corporation for their distinguished contribution to the field of philanthropy.

The Muslim Philanthropy Awards for 2011 were awarded to H.R.H. Prince Talal bin Abdul Aziz Al Saud (Personality) for demonstrating outstanding civic and charitable responsibility; Islamic Development Bank, Saudi Arabia (Grantmaker) for showing long-standing commitment to economic empowerment, human dignity, and institutional building; and Abraaj Capital, UAE (Corporation) for demonstrating longstanding leadership in advancing strategic philanthropy, creativity in responding to societal problems, and having significant positive impact on corporate giving in MENA region.

Bank Sarasin urges a stronger focus on Islamic Financial Planning

The key challenges and opportunities addressed in the Islamic Wealth Management Report are:

•Managing the Islamic wealth cycle through the entire process of wealth acquisition, preservation and distribution and achieving the required balance between spiritual and worldly obligations.
•Understanding the primary issues facing Waqf donors despite the strong growth drivers in this market: poor performance is due in part to the shortage of professionals leading to low quality asset management and lack of transparency.
•Considering the suitability of the Swiss private banking family office structure as a wealth management tool to ensure effective Islamic governance.
•Addressing the challenges facing Islamic mutual funds to achieve growth and performance.
•Recommending standardisation, education and diversification of Sukuk in order to increase the supply of products and the liquidity of the market.
•Analysing Islamic equity and indices performance over the last year to illustrate that diversification remains key for investment without compromising Islamic principles.

Indonesia’s Sharia Banking Assets to Get triple by 2013

The Central Bank of Indonesia has an aim: to create a strong sharia banking industry by 2015. This development strategy, as well as a broader sharia religious revival in the country that is helping to increase the popularity of sharia banking products, will lead to continuous strong growth in this sector during the forecast period.

The assets of sharia banks in Indonesia are anticipated to reach around Rp 399.6 Trillion in 2013 over Rp 107.1 Trillion in 2010.

Editorial Note: The news is linked to an outdated report: "Publish Date: Feb, 2009"

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