Markets are rattled once again as the health of the US economy and the Eurozone debt crisis keep investors jittery amid an increasingly questionable outlook for the global economy. Although Islamic finance operates under a separate system, to say that the industry is safe in its bubble would be a grave error.
This is even as Shariah compliant finance benefits from a wealth of growth potential. Perhaps, as a result, the industry has even more reason to be mindful of slip-ups and should be wary of past pitfalls.
This week, we look at how Islamic finance has remained resilient throughout the past few years; even in markets such as Europe which have been hard-hit by this recessionary era. In Luxembourg, law firm Arendt & Medernach discusses the country’s success in building itself up as a European center for Islamic finance.
However, Luxembourg may see some competition from Ireland, as the Irish Funds Industry Association examines Ireland’s experience in establishing its International Financial Services Centre, with Islamic finance set to become a key growth area.
That two countries in gloom-ridden Europe can look to Islamic finance as a source of optimism certainly signals the industry’s bright future. However it is not all clear skies, as other factors must be considered in order to maintain growth.
Among these is the importance of understanding the framework for Islamic insurance, as discussed by Takaful Insurance of Africa (Kenya); and the differences in the accounting approach of International Financial Reporting Standards and AAOIFI, highlighted in a report by Islamic finance consultant Mohammed Amin.
An article by UFS Investment Company looks at the current tax and legal environment in Russia and its implications for Sukuk. Islamic Investor features a report on the growth of Islamic REITS, while Insider talks to Humphrey Percy, the CEO of the Bank of London and The Middle East.
We have also published the results for our inaugural Islamic Investor Poll, which saw 261 voters cast their vote for 11 categories and CIMB-Principal Islamic Asset Management walking away tops in the overall Islamic Asset Management Company category.
IFN reports look at Islamic certificates of deposit in the UAE; this year’s competition for lead Sukuk manager; Qatar International Islamic Bank’s financials; the possibility of an Islamic megabank finally coming to light; and Indonesia’s dynamic banking industry regulations.
We also have a special report on the late Mohd Razif Abd Kadir, who passed away on the 8th August. A proponent of Islamic finance, he was deputy governor of the Malaysian central bank, where he worked for 35 years.