Dubai: Global Hub for Islamic Finance
October 26, 2015 | Updated at September 27, 2017
You may be aware that we recently put out a white paper based on data provided by Thomson Reuters that seeks to propel Dubai to the forefront of the Islamic asset management industry.
Discussed on CNBC Arabiya from minute 3 onwards
The full paper is here:
- Despite huge international potential, the Islamic asset management sector remains greatly underdeveloped.
- The industry has failed to take root amongst its core demographic. Total AUMs represent a tiny fraction of global funds and product offering is narrow, parochial, lacking choice, diversification and quality.
- GCC investors demand more sophisticated Shari'a compliant savings, pensions, insurance and fund products, and diversify asset classes and geographies.
- Islamic pension fund industry has a long way to catch up globally (US$27 trillion of global pension funds, of which 0.001% is Islamic, despite Muslim population almost one quarter of the world's).
- By diverting 20% of investments in existing regional pension funds into Shari'a compliant funds, US$36 billion would be added to the global Islamic asset management industry, spurring rapid innovation and enabling Dubai to capture the market and transform its Islamic finance industry.
- There is a significant opportunity to capture the crossover between Islamic and ESG investing.
- We recommend the start of a public consultation exercise to accelerate growth of the industry in Dubai.