Asset management in the GCC: A market worth watching
A compelling opportunity for asset managers
Saudi strategy: going it alone or finding a partner?
Three hubs to serve a thriving market
Fixed income, equity, local and international assets – a demand for all
Shariah-compliant market tests perceptions
Some remarkable numbers are thrown around about the global Islamic finance industry, though debate rages as to how reliable they are; commonly cited figures are $500 billion in managed assets, and a growth rate of 15–20%, underpinned by almost 300 institutions.
So if that’s the case, why isn’t every international fund manager trying to sell Shariah-compliant versions of their global equity products to high-net-worth people in the Gulf?
It’s one of the complications of this fascinating area. Shariah-compliant investment is clearly of immense importance, but opinion is enormously divided on how to quantify it. At a regional level, it is clearly well entrenched; in Saudi Arabia, 53% of funds, and 72% per cent of assets, are Shariah-compliant. That country alone accounted for 103 Shariah-compliant funds at the end of 2007, according to Tadawul, Saudi Arabia’s stock exchange.
