IFN Annual Guide 2021
The storm shall pass
Volatility is built into the DNA of the financial markets and while we may embrace and live by this truth, nothing could have prepared us for what 2020 unleashed.
To say that the COVID-19 pandemic ground the world to a halt is perhaps not an overstatement. Economies paralyzed, borders shut, governments scrambling to find a solution as the number of infectious cases and deaths continued to climb – such chaos at such a scale, is unprecedented.
One year on since the coronavirus bared its fangs, we are still navigating this “new” normal, with many still hoping to return to pre-pandemic normalcy – although that is unlikely, at least not for a few years as the damage caused has been so severe.
It has been a painfully challenging year, with lives and livelihoods lost. For the optimistic, it has been a period of real test of the industry’s resilience; and resilient the industry has been.
If we look at the Sukuk asset class, the industry’s poster child: we see that the market showcased encouraging figures with more Sukuk issued in the first three quarters of 2020 at US$130 billion against the same period in 2019. The return on investment-grade dollar Sukuk until November 2020 was about two percentage points higher than the average annualized return for five-year papers. And if anything, the pandemic has been a much-needed trigger to catalyze the growth of sustainable Sukuk, with governments (such as Malaysia and Indonesia) and multilateral organizations such as the IsDB going to market with landmark offerings designed specifically to combat the fallout of COVID-19.
For the Islamic banking sector, like its conventional counterpart, it has been wrestling with deteriorating asset quality and tighter liquidity. Yet, Islamic banks are still posting growth, albeit at a lower level. And more significantly, the pandemic has compelled Islamic banks to expedite their digital strategy, deploying and adopting technology at a pace which would not have been possible without COVID.
Despite a global oil price crash, a deadly virus, and messy geopolitical developments, Islamic funds have been impressive at garnering more traction: mid-November 2020 data shows that global Shariah funds assets under management grew above US$165 billion from 2019’s US$105 billion. And as expected, at a time when risks and uncertainties have become center stage in our lives, the appreciation for Takaful insurance as a risk management instrument has deepened across many markets.
It is incredibly easy to focus on the bad rather than the good – it is almost human nature to do so. But to manage any calamity and turmoil, hope, optimism and gratitude are of crucial importance. Thankfully, the industry – which we have continuously engaged – is keeping its chin up, and is seeing rays of opportunity in this dark storm.
The industry has benefited from rapid digitalization and ‘fintechization’; the role of Islamic finance – particularly philanthropic and Shariah social finance instruments – as a tool for financial inclusion and to meet development needs has been vindicated; and the confluence of ethical and Islamic finance has never been stronger.
Nobody is denying that 2021 will be another challenging year nor that it will be a long journey to recovery – as elaborated by the many experts who have authored and shared their projections for the industry in this seminal publication. But many, backed by historical data and recent performance, firmly believe in the value, resilience and solidarity of the industry; and together, we will weather this storm as we have always done.
Vineeta Tan
Managing Editor
IFN
Content in IFN Annual Guide 2021
Sri Lanka: Pearl of the Indian Ocean
Tuesday, 22 Dec 2020 | IFN Annual Guide 2021
FeaturesThe resurrection of Islamic finance in Mauritius
Tuesday, 22 Dec 2020 | IFN Annual Guide 2021
FeaturesGrowing Islamic finance in Tanzania
Tuesday, 22 Dec 2020 | IFN Annual Guide 2021
FeaturesMorocco: A challenging start for Islamic finance
Tuesday, 22 Dec 2020 | IFN Annual Guide 2021
FeaturesIslamic finance resilience in Tunisia is still under pressure
Tuesday, 22 Dec 2020 | IFN Annual Guide 2021
FeaturesNew Zealand: Idyllic for Islamic finance
Tuesday, 22 Dec 2020 | IFN Annual Guide 2021
FeaturesRegulatory landscape and Shariah governance in Turkey
Tuesday, 22 Dec 2020 | IFN Annual Guide 2021
FeaturesNigeria: Making the best of it
Tuesday, 22 Dec 2020 | IFN Annual Guide 2021
FeaturesUAE: Islamic finance records healthy growth despite challenges
Tuesday, 22 Dec 2020 | IFN Annual Guide 2021
FeaturesOffshore centers continue to feature prominently in Islamic financing transactions
Tuesday, 22 Dec 2020 | IFN Annual Guide 2021
FeaturesUK: Cautious asset allocation and stock picking in 2021
Tuesday, 22 Dec 2020 | IFN Annual Guide 2021
FeaturesOman: Resilient in the face of unprecedent challenges
Tuesday, 22 Dec 2020 | IFN Annual Guide 2021
FeaturesIslamic finance in the US remains a niche sector
Tuesday, 22 Dec 2020 | IFN Annual Guide 2021
FeaturesIslamic finance in Pakistan remains resilient to pandemic
Tuesday, 22 Dec 2020 | IFN Annual Guide 2021
FeaturesOpportunities and expectations for Islamic finance in Uzbekistan
Tuesday, 22 Dec 2020 | IFN Annual Guide 2021
FeaturesPalestine: A promising investment avenue for Islamic finance
Tuesday, 22 Dec 2020 | IFN Annual Guide 2021
FeaturesThe storm shall pass
Tuesday, 22 Dec 2020 | IFN Annual Guide 2021
FeaturesCan the GCC debt capital markets make an impact?
Tuesday, 22 Dec 2020 | IFN Annual Guide 2021
FeaturesFintechs to reset for growth beyond COVID-19
Tuesday, 22 Dec 2020 | IFN Annual Guide 2021
FeaturesForging ahead with Islamic banking
Tuesday, 22 Dec 2020 | IFN Annual Guide 2021
FeaturesQatar: Hope in uncertain times
Tuesday, 22 Dec 2020 | IFN Annual Guide 2021
FeaturesOnline format for Islamic financial instruments in Russia
Tuesday, 22 Dec 2020 | IFN Annual Guide 2021
FeaturesSaudi Arabia under rapid transformation
Tuesday, 22 Dec 2020 | IFN Annual Guide 2021
FeaturesThe impact of Islamic finance in times of a health crisis in Senegal
Tuesday, 22 Dec 2020 | IFN Annual Guide 2021
FeaturesSingapore: Slow but steady progress
Tuesday, 22 Dec 2020 | IFN Annual Guide 2021
FeaturesEthical investing is key in the current climate of South Africa
Tuesday, 22 Dec 2020 | IFN Annual Guide 2021
Features2021: Can the COVID-19 crisis help shape our economies for future growth?
Tuesday, 22 Dec 2020 | IFN Annual Guide 2021
FeaturesAAOIFI’s achievements in 2020 and future initiatives
Tuesday, 22 Dec 2020 | IFN Annual Guide 2021
FeaturesIFSB’s achievements in 2020
Tuesday, 22 Dec 2020 | IFN Annual Guide 2021
FeaturesIIFM activities in 2020-21
Tuesday, 22 Dec 2020 | IFN Annual Guide 2021
FeaturesIILM increases issuance program size to US$4 billion for more Shariah compliant liquidity management instruments
Tuesday, 22 Dec 2020 | IFN Annual Guide 2021
FeaturesIslamic fintech and crowdfunding
Tuesday, 22 Dec 2020 | IFN Annual Guide 2021
FeaturesCybersecurity in a pandemic era for Islamic finance
Tuesday, 22 Dec 2020 | IFN Annual Guide 2021
FeaturesRiding the pandemic wave
Tuesday, 22 Dec 2020 | IFN Annual Guide 2021
FeaturesDerivatives in Islamic banking
Tuesday, 22 Dec 2020 | IFN Annual Guide 2021
FeaturesIslamic finance education adapts to change in new normal
Tuesday, 22 Dec 2020 | IFN Annual Guide 2021
FeaturesOptimism and caution for equity capital markets in 2021
Tuesday, 22 Dec 2020 | IFN Annual Guide 2021
FeaturesSmarter to travel in groups
Tuesday, 22 Dec 2020 | IFN Annual Guide 2021
FeaturesThe obvious roadmap, or is it? Thoughts on strategic drivers for 2020 and beyond
Tuesday, 22 Dec 2020 | IFN Annual Guide 2021
FeaturesIslamic family offices moving toward recovery
Tuesday, 22 Dec 2020 | IFN Annual Guide 2021
FeaturesMind the gap: As SDG financing gap widens, we must harness the power of science, technology and innovation
Tuesday, 22 Dec 2020 | IFN Annual Guide 2021
FeaturesA view on the future of corporate and financial institutions Sukuk
Tuesday, 22 Dec 2020 | IFN Annual Guide 2021
FeaturesBuilding a stronger and more sustainable world together
Tuesday, 22 Dec 2020 | IFN Annual Guide 2021
FeaturesEconomic uncertainty in 2020 and the dual nature of gold
Tuesday, 22 Dec 2020 | IFN Annual Guide 2021
FeaturesAdvancing sustainable finance in Malaysia – the year in review
Tuesday, 22 Dec 2020 | IFN Annual Guide 2021
FeaturesA wake-up call for the Halal industry
Tuesday, 22 Dec 2020 | IFN Annual Guide 2021
FeaturesInterview: Moawia Ahmed Elamin, CEO of Faisal Islamic Bank, Sudan
Tuesday, 22 Dec 2020 | IFN Annual Guide 2021
FeaturesIslamic finance and healthcare: A relationship worth investing in?
Tuesday, 22 Dec 2020 | IFN Annual Guide 2021
FeaturesMarket outlook on Islamic accounting
Tuesday, 22 Dec 2020 | IFN Annual Guide 2021
FeaturesA bird’s eye view of global Islamic agricultural financing
Tuesday, 22 Dec 2020 | IFN Annual Guide 2021
FeaturesFasten your seatbelts — successfully navigating the turbulence
Tuesday, 22 Dec 2020 | IFN Annual Guide 2021
FeaturesA global survey of Islamic wealth management
Tuesday, 22 Dec 2020 | IFN Annual Guide 2021
FeaturesThe compliance outlook for Islamic finance
Tuesday, 22 Dec 2020 | IFN Annual Guide 2021
FeaturesBanking industry in Afghanistan stays positive for 2021 with more achievements expected
Tuesday, 22 Dec 2020 | IFN Annual Guide 2021
FeaturesRegulation of Islamic finance operations in Algeria
Tuesday, 22 Dec 2020 | IFN Annual Guide 2021
FeaturesLegal and regulatory aspects of Islamic finance and banking
Tuesday, 22 Dec 2020 | IFN Annual Guide 2021
FeaturesIslamic leasing: An intrinsic antidote to stimulate economic recovery
Tuesday, 22 Dec 2020 | IFN Annual Guide 2021
FeaturesEconomic darkness in Australia with glimpses of light for Islamic finance and investment
Tuesday, 22 Dec 2020 | IFN Annual Guide 2021
FeaturesCOVID-19 disruptions on liquidity management of Islamic financial institutions
Tuesday, 22 Dec 2020 | IFN Annual Guide 2021
FeaturesIslamic banks continue to be the catalyst for Islamic M&A deals
Tuesday, 22 Dec 2020 | IFN Annual Guide 2021
FeaturesBahrain: Consolidating change through resilience and innovations
Tuesday, 22 Dec 2020 | IFN Annual Guide 2021
FeaturesIslamic microfinance critical for economic recovery: A micro and small enterprise perspective
Tuesday, 22 Dec 2020 | IFN Annual Guide 2021
FeaturesIslamic pension funds: The next big thing in Islamic finance
Tuesday, 22 Dec 2020 | IFN Annual Guide 2021
FeaturesIslamic venture capital on the way up, Islamic private equity on the way out
Tuesday, 22 Dec 2020 | IFN Annual Guide 2021
FeaturesThe Islamic project and infrastructure finance market
Tuesday, 22 Dec 2020 | IFN Annual Guide 2021
FeaturesRenewed emphasis on learning and talent development
Tuesday, 22 Dec 2020 | IFN Annual Guide 2021
FeaturesSovereign credit ratings of major Islamic economies
Tuesday, 22 Dec 2020 | IFN Annual Guide 2021
FeaturesIslamic finance growth to continue with adoption of index-based investing
Tuesday, 22 Dec 2020 | IFN Annual Guide 2021
FeaturesIslamic banking industry in Bangladesh: Trends and outlook
Tuesday, 22 Dec 2020 | IFN Annual Guide 2021
FeaturesAn exceptionally good year
Tuesday, 22 Dec 2020 | IFN Annual Guide 2021
FeaturesReal estate: An enduring appeal
Tuesday, 22 Dec 2020 | IFN Annual Guide 2021
FeaturesCanada making strides in the world of Islamic finance
Tuesday, 22 Dec 2020 | IFN Annual Guide 2021
FeaturesThe push for Islamic finance development in Ghana
Tuesday, 22 Dec 2020 | IFN Annual Guide 2021
FeaturesDigital pseudo-Sukuk to pave the way to better Islamic investments within Malta
Tuesday, 22 Dec 2020 | IFN Annual Guide 2021
FeaturesIslamic finance-based renewable energy
Tuesday, 22 Dec 2020 | IFN Annual Guide 2021
FeaturesIf you play rugby, you cannot follow football rules
Tuesday, 22 Dec 2020 | IFN Annual Guide 2021
FeaturesHong Kong diversifies Islamic finance prospects post-social and pandemic crises
Tuesday, 22 Dec 2020 | IFN Annual Guide 2021
FeaturesIslamic retail asset management
Tuesday, 22 Dec 2020 | IFN Annual Guide 2021
FeaturesHigher Islamic syndicated financing volumes expected in 2021
Tuesday, 22 Dec 2020 | IFN Annual Guide 2021
FeaturesWhat’s next for Islamic financial institutions in India
Tuesday, 22 Dec 2020 | IFN Annual Guide 2021
FeaturesRetail banking in 2020: Learnings and moving forward
Tuesday, 22 Dec 2020 | IFN Annual Guide 2021
FeaturesCentral Africa: Traction and positive change expected in 2021 and beyond
Tuesday, 22 Dec 2020 | IFN Annual Guide 2021
FeaturesIndonesian Islamic finance to focus on retail market
Tuesday, 22 Dec 2020 | IFN Annual Guide 2021
FeaturesRisk management — liquidity under COVID-19 stress
Tuesday, 22 Dec 2020 | IFN Annual Guide 2021
FeaturesTakaful in Asia — every cloud has a silver lining
Tuesday, 22 Dec 2020 | IFN Annual Guide 2021
FeaturesReforms in Iran’s Shariah compliant financial system
Tuesday, 22 Dec 2020 | IFN Annual Guide 2021
FeaturesA careful economy ahead for secondary markets
Tuesday, 22 Dec 2020 | IFN Annual Guide 2021
FeaturesThe rebirth of Takaful in Europe
Tuesday, 22 Dec 2020 | IFN Annual Guide 2021
FeaturesIreland: Rise of sustainable finance to address climate change a unique opportunity for Islamic finance
Tuesday, 22 Dec 2020 | IFN Annual Guide 2021
FeaturesIslamic securitization pre- and post-COVID-19 era
Tuesday, 22 Dec 2020 | IFN Annual Guide 2021
FeaturesTax: Increased transparency to open up cross-border dealings
Tuesday, 22 Dec 2020 | IFN Annual Guide 2021
FeaturesAn alternative financing opportunity in Italy
Tuesday, 22 Dec 2020 | IFN Annual Guide 2021
FeaturesInteraction key to ensuring more harmonious Shariah rulings
Tuesday, 22 Dec 2020 | IFN Annual Guide 2021
FeaturesChina needs Islamic finance for Belt and Road Initiative
Tuesday, 22 Dec 2020 | IFN Annual Guide 2021
FeaturesThe Ivory Coast: Strengthening of regulatory framework for Islamic finance
Tuesday, 22 Dec 2020 | IFN Annual Guide 2021
FeaturesIslamic banking helps Bosnia & Herzegovina cope with economic crisis
Tuesday, 22 Dec 2020 | IFN Annual Guide 2021
FeaturesThe evolving role of Islamic trade finance in the new normal
Tuesday, 22 Dec 2020 | IFN Annual Guide 2021
FeaturesPublic–private partnership for Islamic SMEs to survive
Tuesday, 22 Dec 2020 | IFN Annual Guide 2021
FeaturesDjibouti: Islamic investment center for East African region
Tuesday, 22 Dec 2020 | IFN Annual Guide 2021
FeaturesBrazil: A trade partner and investment destination
Tuesday, 22 Dec 2020 | IFN Annual Guide 2021
FeaturesEmergence of ‘Robin Hood’ traders increases trading and brokerage activity
Tuesday, 22 Dec 2020 | IFN Annual Guide 2021
FeaturesDiversifying approach in Islamic social finance
Tuesday, 22 Dec 2020 | IFN Annual Guide 2021
FeaturesImportance of an effective Shariah compliant repo market
Tuesday, 22 Dec 2020 | IFN Annual Guide 2021
FeaturesMore sovereign Sukuk issuances expected next year
Tuesday, 22 Dec 2020 | IFN Annual Guide 2021
FeaturesEgyptian Sukuk industry leaps forward
Tuesday, 22 Dec 2020 | IFN Annual Guide 2021
FeaturesBrunei Darussalam: Resiliency against the pandemic
Tuesday, 22 Dec 2020 | IFN Annual Guide 2021
FeaturesGender disparity amid pandemic and technology
Tuesday, 22 Dec 2020 | IFN Annual Guide 2021
FeaturesIslamic impact finance in the context of COVID-19
Tuesday, 22 Dec 2020 | IFN Annual Guide 2021
FeaturesDespite political noise, groundwork in the making for the long run in France
Tuesday, 22 Dec 2020 | IFN Annual Guide 2021
FeaturesCOVID-19 did not stop the Islamic finance push for standardization
Tuesday, 22 Dec 2020 | IFN Annual Guide 2021
FeaturesIslamic fintech to play key role in German market
Tuesday, 22 Dec 2020 | IFN Annual Guide 2021
FeaturesSukuk as a feasible option for Japanese investors
Tuesday, 22 Dec 2020 | IFN Annual Guide 2021
FeaturesCross-border Islamic financing in focus for Kazakhstan
Tuesday, 22 Dec 2020 | IFN Annual Guide 2021
Features2020: Kenya’s continued efforts in the Islamic finance sector
Tuesday, 22 Dec 2020 | IFN Annual Guide 2021
FeaturesKyrgyzstan: Islamic finance to mobilize domestic resources and attract additional investments
Tuesday, 22 Dec 2020 | IFN Annual Guide 2021
FeaturesA slow and uncertain progress for Islamic banks in Lebanon
Tuesday, 22 Dec 2020 | IFN Annual Guide 2021
FeaturesLuxembourg to play key role in renewed growth of Islamic finance on European continent
Tuesday, 22 Dec 2020 | IFN Annual Guide 2021
FeaturesCharting new heights for Malaysia’s Islamic finance landscape
Tuesday, 22 Dec 2020 | IFN Annual Guide 2021
FeaturesKuwait: Policy issues for developing the debt capital market
Saturday, 05 Dec 2020 | IFN Annual Guide 2021
Features