There is no doubt that the trailblazers of the Islamic finance industry have led the way in opening up the market and providing the essential innovation and investment which has resulted in such an exceptional performance over the last few years. Yet now that the industry has reached a turning point where it has the opportunity to move towards the mainstream, perhaps it is time that the core markets of Malaysia and the GCC begin to look outwards rather than concentrating on regional investment. This week we focus on the importance of cross-border investment and inclusion, and look at the role that the original market makers can play in opening up the industry to newcomers.
Our cover story takes on the turbulent topic of Islamic asset management, with an emphasis on the importance of an international focus in order to achieve economies of scale. We also bring you a sector feature by Whalan Kazombiaze and Farhah Hayati Mamat of Azmi & Associates on the legal aspects affecting cross-border financing while our IFN sector analysis provides a snapshot of the current state of the sector and its most interesting recent developments. Our IFN correspondents cover both industry stalwarts and new players, with contributions from Qatar and Bahrain and well as from Belgium and Oman.
Our IFN reports this week bring you a wealth of topics: including Shariah compliant retirement schemes, GCC infrastructure funding, opportunities in the declining commodities sector, the importance of international Sukuk and a look at the new TRX financial center in Kuala Lumpur; while our case study analyzes SBI Islamic Fund’s US$9 million convertible Musharakah. Our features take you to Africa with an article from Uwaiz Jassat of Absa Islamic Bank on developments on the continent as well as an IFN country analysis on South Africa. In addition, we bring you an excerpt from the recent second edition of ‘Islamic Finance: Why it Makes Sense (For You)’ by Daud Vicary Abdullah and Keon Chee; a feature on risk management by Dr Hylmun Izhar of the Islamic Development Bank (IDB); and a special report on the impact of Islamic investment criteria from Joshua Brockwell and Omar Ezz of Azzad Asset Management.
We hope you enjoy the breadth of this week’s coverage, which reflects the rich, diverse and multicultural nature of the industry. Next week will be our last issue of the year, and we look forward to rounding off 2013 with you in style.