Manama:
The Islamic wealth management industry has grown tremendously in recent years. With the economic landscape in the region, increasing wealth and strengthening demand for Shari’a complaint investments indicates immense potential for further growth of the industry.
Reflecting these developments, the Ernst & Young Islamic Funds & Investments Report 2007 identifies key trends in the Islamic wealth management industry and highlights the implications of these for industry players.
Key insights and focus points that emerged from the report include:
Strong economic growth on the back of strengthening oil prices as well as diversification of revenue bases towards non-oil sectors;
Trickling down of wealth to individual and institutional demand segments;
Growth of the number of wealthy individuals in the region and the cumulative liquid wealth held by them;
Portfolio allocation trends indicating increasing demand for alternative investment asset classes;
Slow recovery of regional equity markets subsequent to their corrections in 2006;
The viability of Sukuk as an Islamic alternative to conventional fixed income asset class;
The sustainability of the real estate sector as a Shari’ compliant asset class in the region;
The potential of private equity to allow for diversified investment opportunities against the backdrop of volatile public markets;
The potential for the Islamic industry to capture a growth trend in the hedge funds industry;
The growth in the universe of Islamic funds;
The gaps across investment opportunities present in the supply of Islamic funds;
The implications of these trends for a new entrant; and
The critical success factors to be acquired by a new entrant into the Islamic wealth management industry in order to remain competitive.
The report was launched by Ernst & Young at the Pre-Conference Executive Briefing at The World Islamic Funds and Capital Markets Conference on the 26th of May at the Gulf Hotel in the Kingdom of Bahrain. The executive briefing was led by Sameer Abdi, Group Head Islamic Financial Services and Ali Arsalan Tariq, Senior Consultant, Ernst & Young Bahrain.
Ends.
