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Sharia assets reach £136bn |
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Written by Islamic Times
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Monday, 02 June 2008 |
Sharia-sensitive investable assets in the Gulf states and the Far East have reached $267bn (£136bn), according to a new report.
This translates into a potential annual revenue pool of $1.34bn for the Islamic asset management industry, says the Islamic Funds and Investments Report, produced by Ernst & Young.
At the end of March 2008, there were over 500 Sharia compliant funds in the world, 153 of which were established in 2007 alone. According to the report’s projections, the total number of Islamic funds could reach 1,000 by 2010.
The report highlights some of the contrasts between Saudi Arabia and Malaysia, the two largest markets of Islamic asset management.
Many investors in Saudi Arabia consider Islamic products to be ‘preferable’ – meaning they will often choose an Islamic option over a conventional alternative even if the projected returns are not quite so favourable.
In Malaysia, Islamic products are ‘accepted’ – meaning that investors are prepared to consider both conventional and Sharia compliant products.
Sameer Abdi, head of E&Y’s Islamic Finance Services Group, said: ‘The industry is still in its early growth stages as the Islamic funds landscape exhibits a number of gaps and lacks depth is some asset classes.
But there are many ways in which market participants can prepare themselves to benefit from this sector as it emerges.’
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