Islamic banking worldwide ‘what is in it - for All of Us’ By: Muhammad Ikram Thowfeek Founder /...
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Transcript of Islamic banking worldwide ‘what is in it - for All of Us’ By: Muhammad Ikram Thowfeek Founder /...
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Islamic banking worldwide ‘what is in it - for All of Us’
Islamic banking worldwide ‘what is in it - for All of Us’
By:
Muhammad Ikram Thowfeek
Founder / Managing Director
First Global Investments
2nd International Conference & Exhibition on Islamic Banking and Finance – Lahore, Pakistan. 25th August, 2008
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THRUST OF THE PRESENTATION:
• Introduction
• Market demand, shifting global players…
• Islamic Banking Worldwide – what’s in it ‘for all of us’
• Future Trends …
• Conclusion
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‘capitalizing’ on the enormous growth potentials
• The Islamic finance industry is said to be growing at various rates (10% -15% pa), (15% – 20% pa) some even say at 40%-50% per annum and also said to be managing funds $500Bn to $1Tn… it is quite evident that the industry is growing.
• The GCC markets are enjoying a period of extra ordinary growth reminiscent to that of the 70’s oil boom.
• But this time – concentration is on construction, infrastructure, services, tourism and economic diversity as well as greater private sector role.
• Appetite for Islamic finance is very much high and appealing not only in the GCC or Asian markets, but globally.
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20% tapped
80% untapped
• INDIVIDUALS,
• CORPORATE ENTITIES
• THE GOVERNMENT
The untapped market potential is available
to tap into and bring benefits to:
Islamic Banking & Finance - tapped only 20%…
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Islamic banking industry’s growth potential and enormous opportunities are largely untapped due to lack of understanding as to What Islamic Banking is?
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Law & Justice
Ethics & Etiquettes
Commerce & Economy
Politics & Governance
Social, moral & ethical life
Knowledge & learning
Hygiene
Human Rights & Relations
Moral Ethical Social Religious and more….
Islamic Banking & Finance - beyond economical and financial benefits…
such guidance covers all walks of life
Not confined to Muslims only, but for the entire
mankind
Governed by Shari’ah Principles (Quran & Sunnah)
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Standard & Poor’s
International rating agency
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Islamic Banking Windows
Islamic Banking Independent
branches
Islamic Bankingfully-fledged Subsidiaries
Enter through:• Islamic banking windows, • Independent branches • fully-fledged subsidiaries, • fully converted Islamic banks
Fully converted conventional
banks to Islamic
Entering the Islamic finance market…Market Shift …
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Islamic Banking & Finance - appealing to all…
UBS Switzerland
Citigroup USA
Mizuho Financial Group Japan
HSBC Holdings UK
Credit Agricole Groupe France
BNP Pariba France
JP Morgan Chase & Co USA
Deutsche Bank Germany
Royal Bank of Scotland UK
Bank of America USA
Top 10 Global Banks into Islamic Finance – Actively involved to capitalize
Switzerland
United States of America
United Kingdom
France
Germany
Singapore
Thailand
ChinaIndia
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Aspirations to be Islamic Banking Hubs
• Thailand already have Islamic Bank of Thailand, backed by the government to attract FDIs through Islamic finance, to develop the nation…
• London to portray as Islamic Banking Hub with five Islamic banks regulated under FSA…
• Singapore to compete with Malaysia on the Islamic banking front and housed the first Asian Islamic Bank with $100Mn… many in the pipeline.
• Hong Kong aspiring to be Islamic Banking Hub and moving positively…
• India an emerging market for Islamic finance, deliberations going on with RBI with Islamic finance propositions…
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Aspirations to be Islamic Banking Hubs
• France woke up recently to be part of the Islamic banking and finance bandwagon…
• Canada looking into regulatory issues in accommodating Islamic banking and finance institutions…
• Japan building appetite for Islamic Finance through the debut Sukuk offering...
• Indonesia fine tuning regulatory framework to aggressive pursue Islamic banking and finance as mainstream…
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Can no longer market Shari’ah compliant products and attract investors, solely depending on
Islamic sentiments.
Competition becoming stiffer and the customers becoming smarter to demand much more than
Shari’ah Compliance…
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To fuel the growth – the Islamic finance (market) players must strive to capitalize on this global trend
by offering:
• variety and diversified options to investors
• Quality services to match the desired expectation of the investors/customers.
• professionalism in dealing with investors.
• investors with adequate, timely and accurate information to support in their decision making.
• competitive structures, pricing and choice of funds.
• adequate distribution channels.
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Bringing conventional best practices to the Islamic banking fold…
Technology Driven
Innovative product offerings
Excellent Customer Services
Centuries or decades of proven
track record
Multi- distribution
channels
Competitive pricing
strategies
Islamic traditional
valuesWorld renowned Shari’ah Scholars Unique
branding
Innovative Shari’ah compliant products
Geared to lead & make a difference
Competent management
team
Conventional Islamic
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“Islamic finance must be portrayed as a ‘distinct alternative’ to conventional finance, otherwise Islamic finance will be portrayed as ‘just another type of product/service’ under the conventional banking umbrella”
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Islamic banking
Conventional Banking
Retail banking
Corporate banking Investment
banking
E-banking
Private banking
International banking
Islamic Banking
Retail banking
Corporate banking
Investment banking
E-banking
Private banking
International banking
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