PART 1: ISLAMIC INVESTMENT BANKING: GLOBAL TRENDS

Transcription

1 PART 1: ISLAMIC INVESTMENT BANKING: GLOBAL TRENDS 1 Innovation, globalisation and diversification: the key to success for Islamic investment banking Sohail Jaffer The strengths and resilience of the Islamic banking sector Sukuk a challenge to overcome for the sector The future is bright Compelling long-term prospects 2 Growth and development of Islamic capital markets the Malaysian experience Zarinah Anwar Origins in meeting community needs Orderly growth The critical role of the Shariah Advisory Council Current Islamic capital market landscape in Malaysia Pioneering the sukuk market Broadening the range of listed Shariah-compliant products Building the base for Islamic fund management Islamic structured products as a hedging instrument Strong regulatory and facilitative tax frameworks are critical success factors Human capital development 3 Overview of Shariah-compliant investment banking: global challenges and opportunities post-global credit crunch Saleh Jameel Malaikah The impact of the credit crunch and beyond Modernising the Shariah governance process Islamic investment banking innovate or stagnate Private equity the mainstay of Islamic investments The power of bricks and mortar The wealth management revolution beckons Product development and corporate governance need of the time for Islamic banking Takaful the untapped financial services giant Opportunities for GCC banks to expand beyond the regional frontiers The Sukuk market and beyond 4 Strategic choices for Islamic banks in service provision for home and overseas markets Rodney Wilson Extending the range of Islamic financial services The capacity of Islamic banks Strategic options for Islamic banks Vertical or horizontal expansion Al Rajhi Bank in Saudi Arabia Al Rajhi Bank in Malaysia Overseas expansion strategy of KFH

2 Dubai Islamic Bank Qatar Islamic Bank (QIB) 5 London as the international centre for Islamic finance Gillian Walmsley A continued commitment to development Recent developments Islamic finance at the London Stock Exchange Sukuk Shariah-compliant exchange traded funds A centre of excellence and specialist expertise Looking to the future 6 Opportunities and challenges faced by Islamic banks in the UK Dr Aly Khorshid Global market for Islamic financial services Shariah-compliant financial services Shariah advisory board members Roles of Shariah scholars Government strategy for development of Islamic finance in the UK Impact on investment decisions Risk management and Islamic banking Islamic finance offers several answers to risk management in banks Sukuk and current UK legislation Potential for Sukuk in the secondary market Characteristics of secondary market Sukuk and the conventional debt market Limited number of instruments within the Sukuk market The path to liquidity in the secondary market Treasury management of Islamic banking Understanding of Shariah law, creates challenge for standardisation Future challenges Growth and business development What more must be done? Government intervention has to protect the taxpayer 7 M&A opportunities available in the MENA region and cross-border expansion of Islamic financial institutions (post global crisis) Alexander von Pock M&A: drivers and risks A look at the past Effects of the crisis Way forward 8 The outlook for Shari ah-compliant investments including alternatives post global crisis Henry Chin Defining Shari ah-compliant investment Overview of different financial instruments and structures Demand for Islamic finance Sources of capital Market potential for Shari ah-compliant investments

3 Capital mobility and allocation The challenges of Islamic finance The outlook for Shari ah-compliant alternative investments PART 2: ISLAMIC CAPITAL MARKETS 9 The Malaysian Sukuk market Zainal Hasfi Hashim Rapid growth of the global sukuk market Impressive growth of Malaysian sukuk industry Key growth drivers underpinning strong sukuk development Malaysia s leading edge as a global sukuk hub Facilitative rules for issuance process Well-defined Shariah governance framework Competitive pricing Innovative structures and human capital development Incentives for investment activities Comprehensive infrastructure 10 Innovation in Sukuk structures Moinuddin Malim Historical overview Basic structures and issues Structuring Sukuk Rating and listing of Sukuk The approach to structuring Sukuks Emerging market leader Sukuk defaults Appendix A Appendix B 11 The growth and development of Islamic capital markets following the global crisis Farmida Bi The growth of sukuk before the global financial crisis AAOIFI statement Global financial crisis Primary and secondary sukuk markets Sukuk defaults Lack of transparency and untested restructuring Signs of recovery Other positive signs The future 12 Islamic capital markets: the case for a more intelligent positioning in an evolving global industry Ayman Khaleq Executive summary Capital markets considerations applicable to Islamic capital markets products Legal form of investment vehicles Regulation of Islamic products and investor suitability requirements Exchange suitability Shari a compliance certificates (Fatawa)

4 Nature and location of the assets Enforcement and bankruptcy considerations Tax 13 Swaps profit rate swap and cross currency swap Kareem Hussaini and Wanda Regina The structure of global swap markets Profit rate swap Cross currency swap Summary of cash flow movement An analysis of some pros and cons of the structures Some challenges Credit risk and swaps 14 Shariah-compliant financial intermediation: a natural fit for investment banking Zamir Iqbal Financial intermediation in Islamic financial system Shariah-compliant intermediation and investment banking Challenges for Shariah-compliant investment banking 15 Islamic liquidity management Majid Dawood The essence of liquidity Definition Current options and current concerns New and needed developments The future PART 3: WEALTH MANAGEMENT 16 Post-crisis Islamic investment Gul Khan An opportunity for Islamic finance Equity funds Other investments Sukuk 17 Buy side Shariah products Omar Saleem Asghar 18 Recent buy side innovations in wealth management Naveed Ahmad Markets and investor segments Product selection Public equities

5 19 Innovations in Shariah-compliant mutual funds Rejina Rahim Innovation is not a strange concept in Islam Shariah assets breakdown Malaysia Saudi Arabia Customer profile surprises in Malaysia Is Islamic asset management coming into the mainstream? Can Shariah-compliant mutual funds be a viable investment tool? Issues plaguing Islamic asset management Is the party over for Islamic finance? 20 Attractiveness of Luxembourg for Shariah-compliant investment funds and Sukuk Pierre Weimerskirch An attractive segment Increasing competition among countries and financial centres How attractive is Luxembourg as a gateway for Sukuk and Islamic funds? Looking to the future 21 Irish domiciled Shariah-compliant investment funds Brian Higgins and Emmet Quish Ireland as a fund domicile Key features of an Irish domiciled Shariah-compliant fund Irish fund legal structures UCITS funds and compatibility with Shariah Latest developments in UCITS product UCITS IV Non-UCITS Shariah-compliant investment funds 22 Investor services to the Shariah-compliant mutual funds industry Richard Street A breadth of funds Shariah funds structure Prohibited businesses Prohibited instruments and activities Accounting-based screening Maintaining a list of Shariah-compliant companies Dealing with a change in status Income purification Fund administration and custody Support for international development 23 Real estate Islamic funds; market analysis, opportunities and structuring techniques Anass Patel Real estate market overview and post-crisis trends Are Islamic real estate funds the panacea in the long run? Structuring active real estate funds and sharia-compliant investments Islamic REITs in a non-listed environment Concluding remarks regarding the competitive landscape of Grand Paris

6 24 Challenges and opportunities for the growth of Takaful Tommy Trask PART 4: NEW TRENDS AND DEVELOPMENTS IN THE INTERNATIONAL ARENA 25 The GCC sovereign wealth funds and voluntary governance Dr Zeinab Karake-Shalhoub GCC SWFs Portfolios of GCC SWFs SWFs and the Santiago Principles 26 The role of sovereign wealth funds in promoting Islamic investment banking Alberto Brugnoni 27 Improving the core under the Shariah overlay Dr Amin Rajan Before the credit crunch: After the credit crunch: Concluding remarks 28 The role of international centres promoting Islamic Finance like DIFC, Bahrain Financial Harbour, MIFC, London, Paris, Luxemburg and Dublin Ken Owens International centres a little bit of background International centres enabling the growth of Islamic finance Human capital International tax issue for Islamic finance Regulating Shariah, audit and compliance Malaysian Islamic Financial Centre Dubai International Financial Centre Bahrain Financial Harbour London United Kingdom Paris France Luxembourg 29 Islamic finance in international financial centres Nathalie Schoon Islamic finance in international centres The role of international financial centres Global developments The role of regional financial centres Regional versus international, is one better than the other? 30 The convergence of Islamic and sustainable finance: the revival of common sense Natacha Guerdat Sustainable finance Islamic finance More than ethical screening Supporting change Impact investing Microfinance, convergence by objectives

7 31 The role of the UK as an international centre for Islamic banking and finance Mohammed Amin Political stability The English legal system The UK tax system Travel and the time zone Professional resources and the network effect Supportive UK government policy for Islamic finance A successful approach to adapting the UK tax system for Islamic finance Equality of regulatory treatment and an open licensing approach Competition from other financial centres 32 Potential for Islamic investment banking in France Valéry Foussé A completely new international situation What drives the French situation? What will have impact on a long term basis? Where Islamic finance investment banks will potentially have a role Where the competition is important and players are financially strong France tries to preserve its competitiveness and attractiveness A political move ahead to enhance France s financial market and open it to Islamic finance A strong mathematical school French banks do have strong expertise in Islamic finance but New entrants are welcomed but should be fathered A vast potential of development for potential new entrants 33 Islamic banking in Turkey: the Istanbul Financial Centre plans further expansion Paul Wouters Preparing for a new phase 34 Technology trends in Islamic investment banking: towards best of breed solutions Bill Willison PART 5: SHARIAH, REGULATORY AND SUPERVISORY FRAMEWORK 35 Islamic investment banking and European regulation Tim Plews The current position The scope of this chapter Global financial turmoil Islamic finance and the global financial turmoil Islamic investment banking and the turmoil EU regulatory policy-makers and Islamic investment banking A growing profile within Europe The EU s regulatory structure A do-nothing approach towards EU regulation? The exceptional position of London and the UK The rest of Europe is not standing still Islam s political dynamic Islamic investment banking: articulating its ethical proposition Who should provide an education on Islamic finance?

8 What these institutions can do The key points for communication to the European commission Islamic finance lacks a global regulator does that matter? So what should happen next? 36 The role of Shari ah boards and the evolution of underlying Shari ah principles Mohd Daud Bakar Shari ah board: is it a Shari ah advisory or Shari ah supervisory board? Who is a Shari ah board member? What are the roles and duties of a Shari ah board? An overview of the evolution of some underlying principles in Islamic finance 37 Rethinking the strategic significance of Shari a supervision boards Abdel-Maoula Chaar Shari a boards interlocks effect on the Islamic financial field The case study of the Lebanese Islamic banks The institutionalisation effect of Shari a boards 38 The role of IIFM in the global expansion of Islamic capital and money market Ijlal A. Alvi Islamic capital and money market IIFM s role IIFM master agreements for treasury placement (MATP) IIFM/ISDA Tahawwut master agreement (TMA) Liquidity management in Islamic financial institutions (IFIs) Exploring I aadat Al Shira a (repurchase) potential IIFM Wakala master agreement Sukuk