Terrapinn’s second annual Islamic Finance World North America 2008 provides you an opportunity to benefit from in depth panels and case studies revealing first hand experience of successful Islamic financial products and services from industry leaders and experts who have successfully reached this $500 billion market.
|What’s new for 2008?Pre-conference workshop
Monday, May 19th
The concept and methodology of sukuk» Find out more
Retail focus day
In preparation for Islamic Finance World North America 2008, our research team at Terrapinn surveyed over 2000 global finance professionals to try to fully understand the scope and opportunities in the Islamic finance market. This is what we learned:
- 56% of respondents represent a service provider (investment bank, retail bank, fund manager, legal, technology)
- 33% Investment Banks
- 33% Fund managers
- 22% Retail Banks
- 11% Advisors/consultants
Another 13% were end investors, with 30% coming from other related categories. Of the investors:
- 66% were from investment banks
- 16% were from endowment/charities
- 16% are wealth managers
72% of respondents stated that their companies market Shariah compliant financial products.
- 57.1% Real Estate
- 50% Leasing/financing
- 35.7 % Retail products
- 28.6 % Sukuk
- 14.3 % Indexes
- 14.3% Insurance/takaful
- 7.1% mutual funds
Over half of those polled work for a company that is currently investing in Shariah compliant products.
- Companies that are currently investing in Shariah compliant products are doing so for the following reasons.
– Religious reasons: 87.5%
– Ethical reasons: 37.5 %
– Attractive/competitive risk profile: 25%
– Attractive/competitive returns: 25%
– Portfolio diversification: 12.5%
- They are currently investing in:
– Shariah compliant REITS or Real Estate: 70%
– Sukuk: 40 %
– Private Equity: 40%
– Shariah compliant hedge funds: 20%
– Shariah compliant mutual funds: 20%
- 44% of respondents have 60% – 100% of their portfolio invested in Shariah compliant products.
- Overall 66.7% prefer Islamic retail banks as their service provider for Shariah compliant products, Investment banks with knowledge of Shriah came in second.
- The most important factor when choosing a Shariah compliant solution provider is the reputation of the institution.
The main reason for not investing in Shariah compliant products is that companies are unaware of opportunities available to them.
Of the 22% of respondents that are planning on investing in Shariah compliant products in the next 6-18 months:
- 77% are looking to invest in Shariah complaint REITS or real estate, with sukuks coming in second.
- When seeking investment advice they plan to look towards Shariah scholars and law firms with knowledge of Shariah.
- 70% of respondents perceive religious reasons as the primary benefit of investing in Shariah compliant products.
Most respondents perceive innovating Shariah complaint products to be the biggest challenge for Islamic 2008, and feel that Sukuks will be the biggest growth area.