Bahrain tops in developed Islamic finance sector

Bahrain has the second most developed Islamic finance sector, after Malaysia, with total assets worth $47 billion, said a recent analysis.

Bahrain tops in developed Islamic finance sector

Bahrain tops in developed Islamic finance sector

The analysis was based on the ICD-Thomson Reuters Islamic Finance Development Indicator (IFDI), a numerical measure representing the overall health and growth of the Islamic finance industry worldwide.

The indicator measured five key components – quantitative development, governance, social responsibility, knowledge and awareness – which are adjusted for the relative size of each country.

Bahrain had the second most developed Islamic finance knowledge landscape, with 23 institutions offering degrees and courses in Islamic finance, said the report.

In terms of research, the kingdom had 17 research papers on Islamic finance published in the last three years, of which 12 were peer reviewed.

Bahrain also performed well in terms of governance, with a comprehensive regulatory framework covering all aspects of the Islamic finance industry. This was supplemented with strong sharia governance, with the largest number of Islamic finance scholars based in the kingdom, said the analysis.

The Islamic finance industry in Bahrain also performed well in corporate governance and corporate social responsibility disclosures. In terms of awareness, Bahrain had five seminars and five conferences related to Islamic finance last year and 551 news articles on the subject.

Russell Haworth, managing director, Mena, Thomson Reuters, said: “This indicator 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.”

Dr Sayd Farook, global head of Islamic Capital Markets for Thomson Reuters, said: “The IFDI provides equal importance to all aspects of the industry when assessing its depth and development. Our initial research indicates that Bahrain is one of the leaders in the Islamic finance industry, identifying their development in each category.”

“This research will enable policy makers and practitioner to compare themselves with their peers and prioritise areas that require development to ensure they retain their leadership position,” he said.

The IFDI, which was officially launched at the Global Islamic Economy Summit in Dubai last week, aims to expand the scope of Thomson Reuters’ Islamic finance content, research and news analysis and to develop an unbiased multi-dimensional barometer for the development of the Islamic finance industry. – TradeArabia News Service.

http://www.tradearabia.com/news/BANK_247611.html

Bahrain is identified as second most developed Islamic finance country in the world

Thomson Reuters has announced further findings from its collaboration with the Islamic Corporation for the Development of the Private Sector (ICD), the private sector development arm of the Islamic Development Bank (IDB), on the eve of the World Islamic Banking Conference in Bahrain.

Bahrain is identified as second most developed Islamic finance country in the world

Bahrain is identified as second most developed Islamic finance country in the world

The ICD-Thomson Reuters Islamic Finance Development Indicator (IFDI) measures five key components – quantitative development, governance, social responsibility, knowledge and awareness – which are adjusted for the relative size of each country. Based on this analysis, the IFDI has found that Bahrain is the second most developed Islamic finance sector, after Malaysia, with total Islamic finance assets of $47 billion. The UAE coming in as the third most developed Islamic finance country.

Bahrain had the second most developed Islamic finance knowledge landscape, with 23 institutions offering degrees and courses in Islamic finance. In terms of research, the Kingdom had 17 research papers on Islamic finance published in the last three years, of which 12 were peer reviewed. Bahrain also performed well in terms of governance, with a comprehensive regulatory framework covering all aspects of the Islamic finance industry. This was supplemented with strong Sharia governance, with the largest number of Islamic finance scholars (53) based in the Kingdom.

The Islamic finance industry in Bahrain also performed well in corporate governance and corporate social responsibility disclosures. In terms of awareness, Bahrain had five seminars and five conferences related to Islamic finance in 2012, and 551 news articles on the subject.

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. Bahrain sits at the forefront as a leading Islamic finance hub. However, our research help the country identify areas of improvement, and monitor their progress over time to ensure that they maintain their position as a leading Islamic finance hub.”

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 that Bahrain is one of the leaders in the Islamic finance industry, identifying their development in each category.

This research will enable policy makers and practitioner to compare themselves with their peers and prioritise areas that require development to ensure they retain their leadership position. Thomson Reuters is committed to leading the charge in information and analysis to support the global Islamic finance industry, with Bahrain continuing to be a key country of focus.”

The IFDI, which was officially launched at the Global Islamic Economy Summit in Dubai last week, 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.

http://www.cpifinancial.net/news/category/islamic-finance/post/24575/bahrain-is-identified-as-second-most-developed-islamic-finance-country-in-the-world

Islamic finance facing integration challenge

MANAMA: The biggest challenge in the development of Islamic finance is the need for integration within the global architecture, a top regulatory official said.

Islamic finance facing integration challenge

Islamic finance facing integration challenge

According to Central Bank of Bahrain executive director for banking supervision Khalid Hamad, ensuring compliance not just with principles of Islamic commercial jurisprudence but also with internationally acceptable standards of conduct and discipline is critical to its success.

Mr Hamad was speaking yesterday at the fourth International Islamic Financial Market (IIFM) industry briefing seminar, organised on the sidelines of the 20th World Islamic Banking Conference (WIBC).

The event is being held at the Gulf Hotel.

IIFM is a Bahrain-based non-profit organisation that aims at facilitating unification, Sharia harmonisation and legal reforms in Islamic financial markets.

The CBB official said that IIFM is currently working on several important projects, such as the master collateralised murabaha agreement, sukuk standardisation and more hedging products etc.

“All these ambitious projects require substantial financial support,” he said.

“Hence, the industry’s support is required.

“Therefore I urge the non-member institutions to initiate the process of joining IIFM.

“Having more members will enable IIFM to contribute more to sustainable growth of the Islamic finance industry,” he added.

“There are vast opportunities to be tapped globally for Islamic finance, not just amongst the Muslim investor community, but in the global financial market. “High standards of disclosure, transparency and governance will ensure sufficient levels of investor confidence that will lead to the development of a market that is robust and credible,” he said. [email protected]

http://www.gulf-daily-news.com/NewsDetails.aspx?storyid=366118