Shariah-compliant market tests perceptions
Euromoney, is part of the Delinian Group, Delinian Limited, 4 Bouverie Street, London, EC4Y 8AX, Registered in England & Wales, Company number 00954730
Copyright © Delinian Limited and its affiliated companies 2024
Accessibility | Terms of Use | Privacy Policy | Modern Slavery Statement

Shariah-compliant market tests perceptions

Opinions are divided on quantifying the vastly important market for Shariah-compliant investment products, leaving institutions about how what resources to devote to them.

Asset management in the GCC: A market worth watching

A compelling opportunity for asset managers

On the ground or in the air?

Saudi strategy: going it alone or finding a partner?

Three hubs to serve a thriving market

Distribution holds the key

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.


Gift this article