Documente Academic
Documente Profesional
Documente Cultură
Contents of Presentation
Section 1 : Section 2 :
Islamic finance overall growth forecast for 2011 Is the Islamic finance world now better prepared in the event of a repeat Dubai default? Which geographical areas offer best growth opportunities? What it takes for Islamic finance to continue register strong growth momentum
Section 3 :
Section 4 :
Section 1 :
Islamic finance overall growth forecast for 2011
(a) Snapshot of current global position (b) Forecast growth of Islamic Finance in 2011
USD Billion
GCC 43%
Iran 36%
200 100 0
48
No of Countries
2 0 0 6
No of Players
2 0 0 7
100 80 60 40
94.4 1 1.04%
21
20
7
2000 2010*
Islamic Banking
Banking System
100 80
60 40 20 0
3
Takaful
2000
9
2010*
Islamic banking
Ran k 1 2 3 4 5 Country Iran Saudi Arabia Malaysia UAE Kuwait
Sukuk market
Rank 1 2 3 4 5 Country Malaysia UAE Saudi Arabia Indonesia Bahrain
Equity market
Ran k 1 2 3 4 5 Country Malaysia Indonesia UAE Saudi Arabia Kuwait
Takaful
Rank 1 2 3 4 5 Country Iran Malaysia UAE Saudi Arabia Bahrain
3,000 2,500 2,000 1,500 1,000 500 0 2010f 2011f 2012f 2013f 2014f
1,000
20%
2015f
74%
33%
-14.3
Source: Standards & Poor, Zawya, IFIS, Maybank Islamic internal team
USD70 billion
25%
Opportunitie s
Takaful to be marketed as an alternative form of savings and investments in the life segment Global market share < 1% and expected to grow 15% to 20% annually for the next three years shortage of skilled professionals across all key functions underwriting, risk management, claims management and technology deployment. Distressed asset values and challenging capital markets
10
Challenges
Section 2 :
Is the Islamic financial world now better prepared in the event of a repeat Dubai default?
11
Cause
to fuel the Emiratess property boom (mega projects: the worlds tallest building, a giant indoor ski slope, man-made palm-tree islands, etc) low productivity of real estate investments Poor corporate governance untested financial legal system lack of transparency
Issue
announced a six-month standstill on repayments due to conglomerates debts Biggest sovereign default since Argentina in 2001 Damaged countrys reputation of economic competence Negative perceptions on IF
12
Impacts
shaking investor confidence across the Persian Gulf including major banks with exposures to Dubai World such as RBS, Citibank and HSBC Financial panic to world market US, European, Asia market fell
Underlying economic activity back to basic Islamic finance is based on trade Must have real, valid and physical transaction Growth of Islamic financial assets will always be proportionate to the growth of economy Generate legitimate profits
Mutual sharing of risk Conduct right amount of due diligence Ensure proper disclosure and transparency Reduce risks associated with leveraging and imprudent risk taking
13
Section 3 :
Which geographical areas offer best growth opportunities ?
14
15
16
Demand Drivers Strong economic growth High Muslim concentration Abundant liquidity Strong government & regulatory push
17
2011 2009
21.0% Malaysia 25.0% 33.0% 10.0%
Source: CIA World Factbook, PricewaterhouseCoopers, MIFC , Eurekahedge and Maybank Islamic Internal Team
18
Emerging Markets
Egypt
Turkey
Algeria
Bangladesh
Sri Lanka
Pakistan
UAE
China
Indonesia
Section 4 :
What it takes for Islamic finance to continue register strong growth momentum
20
21
> Putting in place a comprehensive international Islamic finance architecture that includes Syariah governance, standards and compliance > Allow Islamic finance to be offered on window platform for markets at nascent stage > Promote liberalisation through issuance of new Islamic licenses to foster a vibrant and competitive environment > Increase availability of liquidity management tools in the Islamic space > Push for tax neutrality and provide incentives for specific growth areas > Build pool of talents and experts in Islamic finance includes providing ease for employment of expatriates
22
> Provide comprehensive Islamic offerings so that no leakages to conventional > Equity-participation as distinguishing factor from conventional moving away from debt-financing instruments > Develop sophisticated financial engineering products such as Islamic structured products, Islamic derivatives and hedging, and Islamic ETFs
23
24
> Ensure fair access to Islamic finance to all communities special attention on the unbankable segments of society > Meet present needs without compromising future obligations > Provide customers with complete faith and trust when banking with IFIs > Improve the lives of the communities by giving back to them Zakat > Advocate a greener earth through promotion of financing and equityparticipation in green technology
25
26
27
The first Malaysian conventional commercial bank to offer Islamic financial services through window concept in 1993 Incorporated as a full-fledged Islamic banking subsidiary in 2008 to pledge its commitment on the promotion and development of Islamic finance Now the largest Islamic finance provider in the AsiaPacific region with Shariah-compliant assets of over USD13.6 billion as at June 2010 Ranked 18th among global Islamic financial institutions
28
Thank You
Ibrahim Hassan, CEO of Maybank Islamic and Head, Global Islamic Banking of Maybank Group Level 19th, Tower A Dataran Maybank, Jalan Maarof 59000 Kuala Lumpur, Malaysia Office : +603 2297 2151 Fax : +603 2297 2002 Email : ibrahim@maybank.com.my
29