Thomson Reuters identifies Saudi Arabia as a key player in the Islamic asset management space

Initial findings of Global Islamic Asset Management Report 2014 based on global survey of investors and asset managers, AUMs in Saudi Arabia exceed USD 6 billion, accounting for 20% of the global market.

Thomson Reuters identifies Saudi Arabia as a key player in the Islamic asset management space

Thomson Reuters identifies Saudi Arabia as a key player in the Islamic asset management space

Riyadh, KSA – Thomson Reuters , the world’s leading provider of intelligent information for businesses and professionals, announced today the initial findings from its Global Islamic Asset Management Report 2014, prepared in collaboration with Lipper.

Earlier this year, Thomson Reuters launched the global Islamic asset management survey to gather market consensus on the state and direction of the global Islamic asset management sector. The survey targeted both investors and asset managers in order to present a fuller picture of the Islamic asset management space.

The report provides unique insights into the development of the sector, highlighting key milestones reached this year, critical challenges to growth, as well as proposed solutions to further develop the Islamic asset management sector.

Russell Haworth, Managing Director, Middle East & North Africa, Thomson Reuters , said: “The Islamic asset management space continues to lag behind in terms of growth compared to Islamic banking. Thomson Reuters is committed to building greater insight and analysis of the Islamic Finance sector overall, and Shar’iah complaint asset management is a critical component of that industry. This year’s report will act as an important benchmark for the industry as it continues to grow.”
Key findings include:

  • With Assets Under Management (AUMs) in Saudi Arabia exceeding USD 6 billion, the Kingdom accounts for 20% of the global market and is the second largest market for Islamic funds globally
  • Saudi Arabia is also the second largest hub for Islamic funds with over 163 domiciled funds
  • The number of funds has doubled since 2007 to 786 globally
  • 2013 saw the highest number of fund launches in four years; 20% of issuances were in Gulf countries, mainly due to a large number of Saudi funds launched during the year
  • Assets under management (AUM) of global funds stand at just over USD 62 billion, with mutual funds accounting for the bulk of this amount, with over USD 46 billion
  • However, AUMs have only increased marginally over the last few years, and declined by 1.7 percent in 2013
  • The sector is primarily retail driven, with only 20% of AUMs derived from institutional investors
  • The underdevelopment of takaful operators and pension funds in Islamic countries has a knock-on effect on the Islamic asset management space
  • Compulsory registration and preceding authorization of Islamic funds with the capital market authority in Saudi Arabia has led to smaller asset managers exiting the market.

Dr Sayd Farook, Global Head of Islamic Capital Markets for Thomson Reuters , said: “Attracting institutional investors is seen a key requirement for the growth and long-term sustainability of the Islamic asset management industry. Despites the lack of institutional participation, we see positive signs, such as the development of pension assets in Islamic countries. We estimate GCC pension assets to be USD 180 billion. Attracting a small portion of these could significantly increase assets under management for Islamic asset managers.”

“Saudi Arabia is a step ahead other GCC countries as asset managers adopt innovative strategies to increase their investor base. For example, this year SEDCO Capital is coming out with their first Islamic fund that will be compatible with socially responsible investment parameters. The fund will have environmental, social and corporate governance principals incorporated into the fund investment strategy, broadening its appeal to a new range of investors.”

The Islamic Asset Management Report 2014 will be launched at the Global Islamic Economy Summit, organised by Thomson Reuters and the Dubai Chamber of Commerce & Industry, on 25th & 26th November 2013 in Dubai, United Arab Emirates. For more information and to register for the event, please visit www.globalislamiceconomy.com.

About Thomson Reuters:

Thomson Reuters is the world’s leading source of intelligent information for businesses and professionals. We combine industry expertise with innovative technology to deliver critical information to leading decision makers in the financial and risk, legal, tax and accounting, intellectual property and science and media markets, powered by the world’s most trusted news organization. With headquarters in New York and major operations in London and Eagan, Minnesota, Thomson Reuters employs approximately 60,000 people and operates in over 100 countries. Thomson Reuters shares are listed on the Toronto and New York Stock Exchanges. For more information, go to thomsonreuters.com

CONTACT
Tarek Fleihan
PR Manager, Middle East, Africa & Russia / CIS, Thomson Reuters
+97144536527
Email: [email protected]

© Press Release 2013

http://www.zawya.com/story/Thomson_Reuters_identifies_Saudi_Arabia_as_a_key_player_in_the_Islamic_asset_management_space-ZAWYA20131119093725/

Saudi Arabia identified as one of the most developed Islamic finance countries

Thomson Reuters has reported the findings from its Islamic Finance Development Indicator (IFDI). The indicator measures five key components – quantitative development, governance, social responsibility, knowledge and awareness. Based on this analysis, the IFDI has found that Saudi Arabia has the second largest Islamic finance sector, after Malaysia, with Islamic finance assets in excess of $270 billion in 2012. This consists mainly of Islamic banking assets of $217 billion, Sukuk of $22 billion and Islamic funds of $18 billion.

Saudi Arabia identified as one of the most developed Islamic finance countries

Saudi Arabia identified as one of the most developed Islamic finance countries

Supplicating pilgrim at Masjid Al Haram, Makkah, Saudi Arabia (CREDIT Ali Mansuri )

Saudi Arabia was also in the top ten countries for educational infrastructure, with seven universities offering degrees and 22 institutions offering courses in Islamic finance. In terms of research published in the last three years, the kingdom had 12 research papers, of which nine were peer reviewed.

Saudi Arabia also performed well in terms of awareness, with 670 news articles, two conferences and seven seminars dedicated to Islamic finance in 2012. In terms of Sharia governance, the Kingdom has 40 Islamic finance scholars, making third behind Bahrain (53) and Malaysia (47).

However, it did not fare as well in terms of governance. Saudi Arabia has yet to introduce dedicated regulations for Islamic finance institutions and continues to score poorly in terms of financial disclosures compared to its peers.

Russell Haworth, Managing Director, Middle East & North Africa, Thomson Reuters, said, “This indicator, the first of its kind for the Islamic Economy, will provide companies with much needed unbiased and reliable multi-dimensional analysis regarding the development of the Islamic finance industry. The development of Islamic finance infrastructure will be a key driver for the establishment of the Islamic finance industry.”

Khaled Al-Aboodi, Chief Executive Officer, Islamic Corporation for the Development of the Private Sector, said, “Today’s findings are a perfect example as to how and why the IFDI can identify the critical growth components of the Islamic Finance industry. As expected, Saudi Arabia sits at the forefront of the Islamic finance industry and is a leading hub in many categories. However, our research also identifies areas of focus that require improvement, particularly governance aspects, to bring the country in line with other Islamic finance hubs.”

Dr Sayd Farook, Global Head of Islamic Capital Markets for Thomson Reuters, said, “Unlike most commentaries on Islamic finance that simply focus on assets and performance, the IFDI provides equal importance to all aspects of the industry when assessing its depth and development. Our initial research indicates, as expected, that Saudi Arabia is one of the leaders in the Islamic finance industry in most dimensions, but identified governance as a key area for improvement. This research will enable policy makers and practitioner to compare themselves with their peers and prioritise areas that require development.

Thomson Reuters is committed to leading the charge in information and analysis to support the global Islamic finance industry, with Saudi Arabia continuing to be a key country of focus.”

The IFDI was developed in collaboration with the Islamic Corporation for the Development of the Private Sector (ICD), the private sector development arm of the Islamic Development Bank (IDB). The IFDI will be officially launched at the Global Islamic Economy Summit.

http://www.cpifinancial.net/news/post/24285/saudi-arabia-identified-as-one-of-the-most-developed-islamic-finance-countries

IFN Forum: Saudi Arabia key market to watch for sukuk

Islamic Finance News Forum 2013 began in Riyadh on Monday with focus on Saudi Arabia’s exceptional growth in the Islamic capital market and its immense potential in Islamic issuance space.

IFN Forum: Saudi Arabia key market to watch for sukuk

IFN Forum: Saudi Arabia key market to watch for sukuk

The two-day forum features an issuers and investors’ day and addresses key issues pertinent to the current economic scenario in the Kingdom and follow up on the latest developments within the country’s Islamic financial market, including recent governmental efforts.
The forum will explore the opportunities within the country for Islamic issuers, investors, corporate and financial institutions.

Islamic finance is a booming industry with a strong growth rate that is attracting participants from all over the world as the flaws in the conventional industry are increasingly exposed and countries seek alternative means of diversifying their financial bases.

Speaking to Arab News Khalid A Al-Mulhim, acting CEO of Alkhair capital and one of the forum panelists, said: “The Kingdom is considered to be one of the key markets to watch as it has proved its potential in the capital market’s issuance space in the last fiscal year, with a slew of high-profile issuance of Islamic bonds (sukuk) backed by the government.”
The Kingdom issued the single largest sukuk in January 2012, which was worth $4 billion, by the General Authority of Civil Aviation (GACA) and its sukuk market is considered one of the largest in the world with Malaysia.

Commenting at his company headquartered in Bahrain, he stated that it seeks to provide the market with an integrated and comprehensive range of Shariah-compliant investment products and services with emphasis on delivering exceptional value and tailored solutions to clients and shareholders.

“Alkhair has the unique advantage to issue Islamic financing securities (sukuk) with a strong track record, and a strong access to the Malaysian sukuk market and expertise, as we have a fully licensed Malaysian sister company AlKhair Malaysia,” he said.

“AlKhair Capital Saudi commands the skills and the capabilities to create suitable Islamic financing solutions to our clients,” he added.

Bank Alkhair, a Bahrain-based Islamic investment bank founded in 2004, is the major shareholder in Alkhair capital, he said, adding that it is an Islamic wholesale bank with subsidiaries in Malaysia and Turkey.

http://www.arabnews.com/news/479561

Saudi Arabia is identified as one of the most developed Islamic finance countries

Saudi Arabia is identified as one of the most developed Islamic finance countries

Saudi Arabia is identified as one of the most developed Islamic finance countries

First-ever barometer for the development of the Islamic Finance industry, Initial findings show Saudi Arabia receiving strong scores in most areas. The Kingdom leads in terms of Islamic finance assets and education, but lags behind in governance .

Dubai, UAE – Thomson Reuters , the world’s leading provider of intelligent information for businesses and professionals, announced finding from its Islamic Finance Development Indicator (IFDI). The IFDI was developed in collaboration with the Islamic Corporation for the Development of the Private Sector ( ICD ), the private sector development arm of the Islamic Development Bank (IDB). The IFDI, which will be officially launched at the Global Islamic Economy Summit, aims to expand the scope of Thomson Reuters ‘ universe of Islamic finance content, research and news analysis and to develop an unbiased multi-dimensional barometer for the development of the Islamic finance industry.

The IFDI is part of Thomson Reuters new information solution catering to the growing need for better access to Islamic finance investments and markets, Zawya Islamic – a unique first of its kind solution for Islamic finance and Shari’ah-sensitive investors. Zawya Islamic will be an add-on to Zawya Markets – the leading Middle East and North Africa business information and investment opportunities platform.

Powered by data from Thomson Reuters and partnering with global Shari’ah and Islamic Finance market players, standard setters and authorities, Zawya Islamic makes Shari’ah-compliant investment, decision making and networking with the Islamic markets easier amalgamating:

Saudi Arabia is identified as one of the most developed Islamic finance countries

Saudi Arabia is identified as one of the most developed Islamic finance countries

1. Fatawa, standards, regulations, legal documentation and product guidance notes, intelligently connected with scholars and instruments.

2. Deep fundamental data on global Sukuk, Islamic funds, Islamic banks, financial institutions and Shari’ah-compliant equities.

3. Islamic finance news, research, indices, money market and benchmark rates.

4. The IFDI and the Islamic Finance Gateway Community.

The indicator measures five key components – quantitative development, governance, social responsibility, knowledge and awareness. Based on this analysis, the IFDI has found that Saudi Arabia has the second largest Islamic finance sector, after Malaysia, with Islamic finance assets in excess of $270 billion in 2012. This consists mainly of Islamic banking assets of $217 billion, Sukuk of $22 billion and Islamic funds of $18 billion.

Saudi Arabia was also in the top ten countries for educational infrastructure, with 7 universities offering degrees and 22 institutions offering courses in Islamic finance. In terms of research published in the last three years, the kingdom had 12 research papers, of which 9 were peer reviewed.

Saudi Arabia also performed well in terms of awareness, with 670 news articles, 2 conferences and 7 seminars dedicated to Islamic finance in 2012. In terms of Sharia governance, the Kingdom has 40 Islamic finance scholars, making third behind Bahrain (53) and Malaysia (47).

However, it did not fare as well in terms of governance. Saudi Arabia has yet to introduce dedicated regulations for Islamic finance institutions and continues to score poorly in terms of financial disclosures compared to its peers.

Russell Haworth, Managing Director, Middle East & North Africa, Thomson Reuters , said: “This indicator, the first of its kind for the Islamic Economy, will provide companies with much needed unbiased and reliable multi-dimensional analysis regarding the development of the Islamic finance industry. The development of Islamic finance infrastructure will be a key driver for the establishment of the Islamic finance industry.”

Khaled Al-Aboodi, Chief Executive Officer, Islamic Corporation for the Development of the Private Sector , said: “Today’s findings are a perfect example as to how and why the IFDI can identify the critical growth components of the Islamic Finance industry. As expected, Saudi Arabia sits at the forefront of the Islamic finance industry and is a leading hub in many categories. However, our research also identifies areas of focus that require improvement, particularly governance aspects, to bring the country in line with other Islamic finance hubs.”

Dr Sayd Farook, Global Head of Islamic Capital Markets for Thomson Reuters , said: “Unlike most commentaries on Islamic finance that simply focus on assets and performance, the IFDI provides equal importance to all aspects of the industry when assessing its depth and development. Our initial research indicates, as expected, that Saudi Arabia is one of the leaders in the Islamic finance industry in most dimensions, but identified governance as a key area for improvement. This research will enable policy makers and practitioner to compare themselves with their peers and prioritise areas that require development. Thomson Reuters is committed to leading the charge in information and analysis to support the global Islamic finance industry, with Saudi Arabia continuing to be a key country of focus.”

The Global Islamic Economy Summit, organised by Thomson Reuters and the Dubai Chamber of Commerce & Industry, will take place on 25th & 26th November 2013 in Dubai, United Arab Emirates. For more information and to register for the event, please visit www.globalislamiceconomy.com.

-Ends-

About Thomson Reuters

Thomson Reuters is the world’s leading source of intelligent information for businesses and professionals. We combine industry expertise with innovative technology to deliver critical information to leading decision makers in the financial and risk, legal, tax and accounting, intellectual property and science and media markets, powered by the world’s most trusted news organization. With headquarters in New York and major operations in London and Eagan, Minnesota, Thomson Reuters employs approximately 60,000 people and operates in over 100 countries. Thomson Reuters shares are listed on the Toronto and New York Stock Exchanges. For more information, go to thomsonreuters.com

About the Islamic Corporation for the Development of the Private Sector. 

The Islamic Corporation for the Development of the Private Sector ( ICD ) is a multilateral developmental organization affiliated with the Islamic Development Bank (IDB) Group. Its authorized capital stands at $2.0 billion. Its shareholders consist of the IDB, 52 member countries, and five public financial institutions. Headquartered in Jeddah, KSA, the ICD was established by the IDB Board of Governors during its 24th annual meeting held in Jeddah in November 1999.

The mandate of the ICD is to support the economic development of its member countries through provision of finance to private sector projects in accordance with the principles of Sharia’a law i.e., Islamic Law.

CONTACT
Tarek Fleihan
PR Manager, Middle East, Africa & Russia / CIS, Thomson Reuters
+97144536527
Email: [email protected]m

Nabil El Alami
Division Head – Group Marketing & Communication, ICD
+966 2 646 8192
Email: [email protected]

© Press Release 2013

http://www.zawya.com/story/Saudi_Arabia_is_identified_as_one_of_the_most_developed_Islamic_finance_countries-ZAWYA20131118115640/