This factsheet covers the market outline for Islamic Finance globally. It contains links to events which business development managers must attend in order to network and build relationships with industry experts and government officials from across the world. For professionals the industry, this page also mentions the essential qualifications that you must acquire in order to serve organizations in the industry.
Annual Growth rate: 20% (see here)
Volume of assets under management by Islamic law compliant institutions: over 1 trillion
Number of business players: 600 financial institutions operating in more than 75 countries (source)
Islamic Insurance (also known as Takaful)
Expected growth rate in 2011: 31% (see here)
The size of this industry is expected to increase almost three-fold from an estimated US$9 billion in 2009 to $25 billion by 2015, as per an Ernst and Young study (see here for details)
Major Global Events
(These are relevant for aspiring market participants, professionals, and experts as opportunities for networking and are a great brand building exercise)
- World Islamic Economic Forum (WIEF) [Just finished on 7th to 9th June, 2011 in Astana, Kazakhstan]
- Annual World Islamic Banking Conference (WIBC, Asia Summit) [Just finished on 8th and 9th June, 2011, Singapore]
- Annual World Islamic Banking Conference (WIBC, World Summit) [Scheduled for 21st to 23rd November, 2011 in Bahrain]
- International Takaful Summit (London) [Scheduled for 12th to 13th July, 2011]
Important qualifications/ certifications (for current and aspiring professionals in the industry)
- Certified Islamic Professional Accountant (CIPA) (see here for details)
- Certified Shari’a Adviser and Auditor (CSAA) (see here for details)
International standardization bodies
1. Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI)
Status of AAOIFI
The AAOIFI has 41 accounting and governance guidelines for Islamic financial institutions. The individual financial sector regulators in Bahrain, Qatar, Syria and Sudan have made the standards mandatory for Islamic financial institutions, however, they are merely considered advisable in countries such as Malaysia, Saudi Arabia and the United Arab Emirates. England does not rely on them either.
Lack of standardization is a concern that has attracted the attention of industry professionals and regulators alike, and joint efforts at an international level are expected.
Latest news on Islamic finance from AAOIFI
AAOIFI has passed 11 new financial standards on October 31, 2010 (see here for more details)
The Islamic Financial Services Board (IFSB) was established in 2002 as an international standards setting body. It recommends standards consistent with Sharia principles. It has over 190 members, including several central banks, the International Monetary Fund, the World Bank and the Islamic Development Bank.
The IFSB’s recommendations and standards are not binding on its members.
Some of the important standards and guidance notes issued by the IFSB are given below.
Standards relating to Takaful (Islamic Insurance)
Standard relating to Sukuk
Capital Adequacy and Risk Management Standards