GIES Series will cover digitisation in Islamic banking in November

The Global Islamic Economy Summit Series is hosting a webinar on digitisation in Islamic banks this November.

Digitization of Banking: Lessons Learned from 2020 will be held on 10 November, 2020 at 1 pm, GMT +4. Islamic banks have been affected by this year's pandemic as customers postpone payments under government-instituted loan deferment programmes. However, there are also growth areas such as for digital finance, as well as market demand from capital markets with multilaterals (Islamic Development Bank), sovereigns (Indonesia) and corporate issuers in Malaysia, Indonesia, the UAE and KSA. This webinar will cover key lessons from this year that can increase industry resilience against future crises and pandemics.

The Global Islamic Economy Summit (GIES) is the world’s largest and most inclusive gathering for the Islamic economy. While the annual GIES event has been postponed, the organisers are hosting a virtual series that will be covering a range of the Islamic economy including Islamic finance, halal food and halal lifestyle.

The sessions are designed to:

- Facilitate collaboration in addressing the potential challenges the industry faces in the post-COVID-19 era.

- Explore new ideas and exchange knowledge on ways to optimise the development of key Islamic economy sectors

- Stimulate discussion among all stakeholders as to how to become innovative, interconnected and impactful.

- Encourage Islamic economy businesses to leverage technology to bypass traditional barriers to entry.

Details:

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Now is the time to buy Islamic art

• The Louvre Paris will lend its Islamic art expertise to the Abu Dhabi branch

• Art institutions like Maraya Art Center constitute a soft power. This, in the long run, will reflect positively on the country’s economy

• Art from the region remains undervalued because the modern art scene is still developing


Islamic art breaks the negative stereotype associated with the word ‘Islamic’ in the world – particularly, the West, says moderator Ahmed Salim, Founder of 1001 Inventions UK, an international science and cultural heritage organisation that raises awareness of the creative golden age of Muslim civilisation. Moderating a session on Islamic art during Global Islamic Economy Summit (GIES) 2016, he also said that now is the time to invest.


Mai Eldib, Consultant at Sotheby’s Egypt, agreed. She noted that there are two distinct types of Islamic art, sought after by different audiences. The art from the era of the Islamic empire and until the year 1900, attracts mostly Western buyers, whereas post-1900 Arab and Iranian art, not necessarily created by Muslims, sells more in the MENA region.

“When it comes to investing in art, it’s a tricky discussion,” Eldib said, “Art doesn’t yield dividend like bonds or stocks, yet it is now very much coveted as an asset. Art from the region remains undervalued because the modern art scene is still developing. However, events like Art Dubai are placing local and regional artists on the international map. Once an artist surpasses their niche aspect of being an Egyptian, Saudi, Emirati, etc. artist, the value of their art goes up.”

Yannick Lintz, Islamic Art Director at The Louvre Museum in Paris, France said the Louvre had begun with a focus on Islamic art in France in a room with contemporary design and is branching outwards. "..we are always working to develop programmes outside the confines of the museum itself. We now have accords with museums in the Islamic world in places like Cairo, Tehran, and Istanbul. The time is now to create an international network of directors of Islamic arts museums,” he said.

Lintz added that the Louvre, Paris will lend its expertise to the Louvre Abu Dhabi, offering advice on how, where, and when to buy pieces of Islamic art to add to the museum’s current collection of 300 pieces. The larger the local collections grows, she noted, the less the Louvre Abu Dhabi will depend on pieces coming from France.

Giuseppe Moscatello, Art Director at the UAE’s Maraya Art Foundation, explained that art institutions like Maraya Art Center constitute a soft power that will reflect positively on the country’s economy in the long run. “The art scene in the UAE – and the region – is looking at positive growth, seeing as a majority of the population in the Gulf is under the age of 30, and many young artists are emerging. These artists are most often represented by galleries, which is important to further their careers, and the government is supporting our efforts.”

Liquidity Management through Sukuk discusses challenges and emerging solutions

Thomson Reuters, the provider of information for businesses and professionals, has released the Liquidity Management through Sukuk teaser report in partnership with the Dubai Islamic Economy Development Centre (DIEDC) and in collaboration with National Bonds Corporation (NBC) at the Global Islamic Economy Summit (GIES 2016).

The report discusses the key challenges facing liquidity management in Islamic finance and highlights some of the current existing solutions to overcome these issues. The full version of the report will be released later this year.

According to the report, few instruments have been able to meet both the industry’s needs and its stakeholders’ full expectations. As a result, Islamic banks in the GCC today hold 9% of their assets in cash and equivalents and 10% in placements with other financial institutions. Islamic banks currently place liquid funds in short-term instruments such as commodity murabahah that shari'ah rules have deemed non-tradable in secondary markets. Many shari'ah experts had hoped they would be temporary solutions used in limited contexts where no other instruments could be developed, but lacking alternatives, they have instead become widely adopted in the industry.

New strategies to meet the liquidity management and personal financing needs of Islamic banks and Islamic windows at conventional banks are being developed. One such product is the National Bonds Sukuk Trading Platform, which uses assets in the local economy to structure shari'ah-compliant consumer financing.

Abdulla Mohammed Al Awar, CEO, Dubai Islamic Economy Development Centre, said: “Since the launch of our leadership’s Dubai: Capital of Islamic Economy vision, we have been working with our stakeholders and strategic partners towards developing Islamic finance instruments and reinforcing the significant role of existing instruments such as sukuk in the growth of Islamic finance. As part of our efforts, we have also been supporting studies and researches that catalyse the development of the Islamic economy ecosystem.

“This report, which articulates such efforts, offers a detailed study on liquidity management through sukuk and highlights opportunities to incentivise the growth of Islamic finance and eventually facilitate the development of related sectors. We are confident this report will be treated as an authentic reference point for all stakeholders engaged in the growth of Dubai as the capital of Islamic economy.”

Mohammed Qasim Al Ali, CEO, National Bonds Corporation said: “In line with our strategy to nurture financial literacy in the UAE and offer efficient low-risk financial products, we are pleased to contribute to this report that provides the answer to a crucial question related to the efficiency of liquidity and stability of the financial sector as a whole. Moreover the report highlights the benefits of the significant role of the sukuk platform in ensuring that liquidity and financing fulfil their main role through incentivising economic growth and resolving financial challenges faced by SMEs and business leaders - while avoiding the risks that go hand in hand with conventional loans.”

Nadim Najjar, Managing Director, Middle East and North Africa, Thomson Reuters said, “The Liquidity Management through Sukuk teaser is a highly engaging and dynamic study that inspires and excites Islamic finance stakeholders and professionals to assess the current liquidity management landscape and challenges. The report also provides a comprehensive study on recent trends and developments in Islamic finance and sukuk in the GCC region and beyond.”


Interested?

Download Liquidity Management through Sukuk

New organisation unifies efforts to build a global ecosystem for endowment investments

+New Awqaf International Organization (AIO) is aligned with HH Sheikh Mohammed bin Rashid Al Maktoum's vision in enhancing Dubai’s position as capital of the Islamic economy

+The initiative enhances the role of endowments as one of the most important social and economic development tools

In line with the directives and support of HH Sheikh Mohammed bin Rashid Al Maktoum, VP and PM of the UAE and Ruler of Dubai, HE Mohammad bin Abdullah Al Gergawi, Minister of Cabinet Affairs and the Future and Chairman of the Executive Council of HH Sheikh Mohammed bin Rashid Al Maktoum, has announced the launch of the Awqaf International Organization (AIO) during the opening ceremony of the third Global Islamic Economy Summit (GIES 2016) held in Dubai, UAE.

Instituted by Awqaf and Minors Affairs Foundation (AMAF) in collaboration with the Dubai Islamic Economy Development Centre (DIEDC) and the Mohammed bin Rashid Global Centre for Endowment Consultancy, the first-of-its-kind initiative globally aims to enhance the role of endowments in the development of societies worldwide.

During his keynote speech at the GIES opening ceremony, Al Gergawi said that endowments is one of the most important social and economic development tools.

Al Gergawi said: “The initiative is a main pillar for the Dubai: Capital of Islamic Economy initiative that aims to develop the awqaf sector and unify the efforts of global awqaf entities and organisations to improve the role of waqf as a key catalyst of economic development.

“The new organisation will unify all local and global efforts to establish a shared system for endowment investments whose laws and regulations are approved by all awqaf organisations worldwide. This step will further enhance the role of the endowment sector and make it a partner in financial transactions and investments in various Islamic economy sectors.”

The press conference was attended by His Excellency Tayeb Al Rais, Secretary General of AMAF, His Excellency Abdullah Mohammed Al Awar, CEO of Dubai Islamic Economy Development Center, and His Excellency Dr. Hamad Al Hammady, Secretary General of Mohammed bin Rashid Global Centre for Endowment Consultancy.

Tayeb Al Rais, Secretary General of AMAF, said the AIO is an umbrella organisation that will empower the work of awqaf organisations by "opening up channels of coordination, collaboration and exchange of best practice."

“This new global is based on our view of the current state of Islamic societies in the region and around the world. Such societies are in urgent need of holistic and sustainable development that is not only in harmony with Islamic values, but also grounded in the realities of modern development," he said.

"We are proud to note that there are several Islamic endowments active around the world. Their tireless efforts have benefited various underprivileged sections of society in terms of imparting education, quality healthcare, vocational training, employment and other socioeconomic support."

Al Rais added that the AIO will facilitate a better use of the potential of endowments, and place authorities in a stronger position to help people at the grassroots level, regardless of their religious or ethnic backgrounds.

The founding members of the AIO include:

Awqaf and Minors Affairs Foundation
Dubai Islamic Economy Development Center
Mohammed bin Rashid Global Centre for Endowment Consultancy
The Department of Awqaf in Sharjah
Awqaf SA (National Awqaf Foundation of South Africa)
Awqaf Canada (National Awqaf Foundation of Canada)
Awqaf New Zealand
Awqaf USA
Awqaf Australia
The Independent Committee of Islamic Finance in Europe
Awqaf Sheikh Mohammed Abdulaziz Al Rajhi

Abdulla Mohammed Al Awar, Chief Executive Officer of DIEDC, said that the launch of AIO reinforces Dubai’s position as an incubator of innovative concepts that advance the Islamic economy. He noted, "With the establishment of the AIO, we expect to achieve a positive impact on the lives of communities across the globe. We also anticipate the AIO to play a pivotal role in strengthening the functioning of endowment institutions through facilitating the financing of SMEs in these countries, and providing the right human resource training to advance their competencies."

Dr Hamad Al Hammadi, Secretary General of Mohammed bin Rashid Global Centre for Endowment Consultancy, said: “The vision of our wise leadership has always focused on addressing the root challenges first, which then yield sustainable outcomes. Unequal social development is one root cause that often leads to a decline in social relations and slows economic growth. We take pride in Dubai’s and the UAE’s constant efforts that seek to enhance the wellbeing of all people.”

Imad Kaddoura, Secretary General of Awqaf Canada, said: “As the Islamic economy framework gains ground and becomes a vital part of the mainstream global economy, it is crucial that we consolidate our efforts to manage and invest awqaf assets, capital, and returns in a shari’ah-compliant manner. The newly established AIO will enable awqaf projects to play a stronger role in our society as sustainable projects beneficial to our stakeholders, as well as the wider global community. We appreciate AMAF’s support and dedication to lead in the launch of this ground-breaking initiative."

Khalid Sukkarieh, Secretary General of Awqaf Australia, said the AIO is a turning point in crystallising the efforts of awqaf international entities. "With this new body we can all work together on a global scale to achieve social development and pursue a mandate that transcends geographical borders. Awqaf has always had a historical place in uniting people of different nationalities and faiths - without discrimination and this is a message we can send globally."

Zeinoul Abedien Cajee, National Coordinator of Awqaf SA, added: “The newly-established Awqaf International can help unify and standardise the work of awqaf entities across the world. In doing so, it will enable awqaf international entities to leverage best practices, and customise initiatives according to geographies to achieve maximum social impact.”

Talib Al Marri, Secretary General of the Sharjah Awqaf General Trust, commented: ““Through this initiative, and in collaboration with other awqaf entities, we hope to enhance all of our efforts. The AIO aims to advance awqaf traditions, strengthen its role in society, and establish awqaf international standards to meet the needs and priorities of the public which can then benefit every segment of society. We commend the efforts of all the founder members and DIEDC in undertaking the responsibility of instituting this unique global organisation and look forward to supporting and adding value to this noble and collaborative endeavour.”

Bader Bin Mohammed Al-Rajhi, Chairman of the National Committee of Endowments, said: “The role of awqaf and waqf investments is part of our religious beliefs, our history and society. Now, as we join together in the new AIO, we will be united in spreading the message of the importance of waqf investments and trust formations on a global level. This will help change the future of Islamic finance and we are proud to be among the founders of this important new group.”

Husain Benyounis, Secretary General of Awqaf New Zealand, said: “The AIO has been launched not merely to coordinate the efforts of member foundations and entities, but to create a global network that shares best practices and can manage international endowments and funds. The body has also been tasked with recommending unified templates for legal frameworks, supporting the organising of awqaf investments, and overseeing applications of sharia standards in accounting, reviewing, and governance.”

Tareq Abou Nour, Secretary General of the Independent European Committee for Islamic Finance Studies, said: “The launch of this global awqaf organisation is the result of the growing interest in the Islamic economy, and its prominent presence in various financial sectors of significance. The AIO reflects a bright future in creating an international platform that convenes all awqaf and like-minded philanthropic foundations. We believe that collaboration is a vital part of change, and awqaf’s new organisation can successfully utilise this approach to enhance its outreach.”

posted from Bloggeroid

Gen Z poised to disrupt Islamic markets: GIES

A panel discussion on Generation Z at the Global Islamic Economy Summit (GIES) has highlighted the characteristics of the generation after Millennials. Gen Z individuals have not experienced a time without the Internet or mobile phones, and other than being more technologically savvy, also have differences in outlook.

“The group is increasingly on the radar of governments who are beginning to question whether the existing education and employment ecosystem can cater to their expectations,” said Sunil John, CEO, ASDA’A Burson-Marsteller. John quoted from the ASDA’A Burson-Marsteller Arab Youth Survey 2016, which found that most young Arabs – 58% – want to further their education, and that more than a third of young Arabs – 36% – want to start their own businesses. Traditionally, young Arabs have looked to the government to provide them with jobs.

“These findings are really interesting in terms of the Gen Z effect,” he said. “We within government, within the Islamic economy, within the private sector and within civil society need to listen to these voices and make the right decisions on their behalf. If you really look at it, these are very positive findings. Government will see light at the end of the tunnel. They will see a young generation that has a hunger to be successful; people who have an appetite for education, and who want to start their own businesses.”


John added that change will not be gradual. While 95% of nationals in the UAE for example work in the public sector today, depressed job markets and unemployment rates in countries such as KSA mean that the public sector cannot continue as the main employer for long.

Marcie Merriman, Executive Director, Growth Strategy and Retail Innovation at Ernst & Young contrasted Generation Z and Millennials. Millennials, she said, expect companies to do the heavy lifting, and patronise firms they respect in terms of environmental and sustainable practices.

“When I talked to Generation Z, however, who I originally thought of as young Millennials, I began to see something very different: they immediately talked about what they were doing about the environment, as opposed to what the companies were doing.

“The key difference between these two groups, apart from age, was their self-awareness. Gen Z see themselves as having responsibility for their ecosystem, whereas Millennials were looking at others to do things.”

Commenting on their choice of employers Merriman said: “Gen Z has seen what has happened with Millennials. They say this isn’t going to happen to us, we’re not going to let other people tell us what to do. We’re going to take charge of it. And that’s what underlies the entrepreneurial spirit. They have nothing to lose.”

Amani Al Khatahtbeh, founder of Muslimgirl.net, a US website for Muslim women and herself a Millennial, agreed. “For Generation Z, a lot of industries are outdated. They want to be disruptors. They want to flip these institutions upside down, and that gives us a lot of hope.”

Al Khatahtbeh also pointed out that the global economy, and in particular Western brands have been co-opting Islamic identity for their own purpose. She said the brands may have generated publicity for themselves, but do not represent an authentic Muslim voice. “What are brands in it for: empowering Muslims, or exploiting them?” she asked.

Dolce & Gabana introduced a range of abayas for the Middle Eastern market as an example, she said.
“The model is a white-passing woman, who might not even be Muslim,” she said. “The fashion designers didn’t consult with a Muslim, and the range was only launched in the Middle East. It overlooked the US – a US$140 billion market for Muslims.”

GIES organisers introduce partners

The organisers of the Global Islamic Economy Summit (GIES) have introduced some of the partners it is working with. The Dubai Chamber of Commerce and Industry, Dubai Islamic Economic Development Centre (DIEDC), and Thomson Reuters are collaborating to launch the third instalment of GIES.

Themed Inspiring Change, the summit will take place on October 11 and 12, 2016, in Madinat Jumeirah, Dubai, UAE under the patronage of HH Sheikh Mohammed bin Rashid Al Maktoum, VP and PM of the UAE and Ruler of Dubai. The two-day event will discuss various aspects of the Islamic economy.

HE Majid Saif Al Ghurair, Chairman, Dubai Chamber, and Board Member of the DIEDC, said: “We cannot but express our gratitude to our esteemed partners for the tremendous efforts they have dedicated towards the success of the Global Islamic Economy Summit 2016. Renowned institutions from various economic sectors all joined hands with us to bring the summit to fruition, and, without their efforts, the event would not be the force-to-be-reckoned-with that it is today.”

At the top of the list of sponsors are two of the UAE’s leading banking and finance institutions: Abu Dhabi Islamic Bank (ADIB) and Dubai Islamic Bank (DIB). The banks are among the world’s most prominent institutions operating in the Islamic finance sector.

Dr Adnan Chilwan, Group CEO of DIB said, “The global Islamic finance sector continues its upward trajectory and is estimated to reach US$5 trillion by 2020. Driven by geometrically increasing demand emanating from more than 1.5 billion core consumers which form its niche, it is fast becoming a critical component of the financial system in many other jurisdictions including those previously considered non-core or non traditional. Whilst significant progress has been made since the inception of DIB more than 40 years ago, further innovation and enhancements must continue if the sector is to reach its ultimate goal of becoming a viable norm rather than an alternative."

Tirad Mahmoud, CEO, ADIB said: ”In line with our efforts to initiate and support initiatives that strengthen the position of the home of the UAE as the global capital for the Islamic economy, ADIB has been supporting the GIES since its inception and we are looking forward to yet another successful event this year. We believe this summit is an ideal platform for the various pillars of the global Islamic economy to share best practice and discuss the latest developments locally, regionally and globally.”

Diamond sponsor Dubai Silicon Oasis Authority (DSOA) is the regulatory body for Dubai Silicon Oasis (DSO), a wholly-owned entity of the government of Dubai that operates as an integrated free zone technology park for large enterprises, medium and small companies looking to set up their offices in Dubai. DSO is also home for Dubai Technology Entrepreneur Centre (DTEC), DSOA’s wholly owned technology incubation centre and the largest of its kind in the region. In less than one year from its official launch, DTEC has become home for more than 550 startups from 63 different nationalities.

Dr Mohammed Alzarooni, Vice Chairman and CEO of Dubai Silicon Oasis Authority (DSOA), said: “GIES 2016 marks the third edition of this definitive event that articulates Dubai’s ambitions to emerge as the global capital of Islamic economy. DSOA is committed to actively participating in the growth of the emirate’s Islamic economy sector that plays a significant role in shaping its post-oil economy. As a hub for tech businesses, we are especially dedicated to support the area of digital Islamic economy, a focus of the mandate set by our wise leadership. (The) Digital Islamic economy is a key driver of the growth we foresee for the larger Islamic economy sector, given its capacity to transcend geographical boundaries and initiate innovative solutions and products that are aligned to the principles of Islamic economy.

“We are also pleased to organise the second edition of DSOA’s Innovation 4 Impact Competition at the summit this year. This event reiterates our commitment to support technology start-ups, especially emerging Islamic digital economy entrepreneurs, from around the world. It will provide the innovators with an ideal platform to showcase their innovative ideas in the field.”

Source: Dubai Chamber. Al-Rais.

HE Tayeb Al-Rais, Secretary General of Awqaf and Minors Affairs Foundation (AMAF), said: “We are pleased to partner with the GIES that has achieved great success in the last two years. GIES has significantly strengthened Dubai’s position in Islamic economy on the regional and international levels. It has also promoted the emirate’s status as a leading model in endowment management, as well as in charitable and humanitarian work. We hope this year’s summit will build on these strengths and further enhance cooperation between all experts and stakeholders to forge a brighter future for our coming generations.”

Gold sponsor AMAF is a Government of Dubai entity mandated with overseeing the welfare of nearly 2,400 minor children through the development and management of ‘waqf’ (endowment funds) that provides for their support and care in line with shari’ah principles. AMAF makes investments on behalf of the minors and disburses the proceeds.

Tawreeq Holdings, a group based out of both the UAE and Luxembourg offering supply-chain finance for SMEs, is also a gold sponsor. Tawreeq developed the world’s first shari’ah-compliant Trade Receivables Securitisation Platform.

Fitch Ratings is a silver partner. The statistical ratings organisation boasts dual headquarters in New York City in the US and London in the UK.

In addition to the abovementioned key partners, Path Solutions joins the summit as an exhibitor. The company provides software solutions for the banking industry – ones that are tailored to be compatible with the specific needs of the Islamic finance industry.

Takaful market could surpass US$50 billion by 2020

The aafaq Center for Research in Islamic Economy (ACRIE) and Hamdan Bin Mohammed Smart University's (HBMSU's) Dubai Center for Islamic Banking and Finance (DCIBF) have released a report on takaful at the third Global Islamic Economic Summit (GIES) in Dubai, UAE.

Takaful: Global Challenges to Growth Performance and Governance was developed in collaboration with the Dubai Islamic Economy Development Centre (DIEDC), and ACRIE, a subsidiary of aafaq Islamic Finance. 

 
The report reveals that the GCC region currently dominates the takaful business, with Southeast Asia and Africa as the next biggest markets. The report estimates that the global takaful market could be worth US$52.5 billion by 2020. Potential obstacles include the relative under-development of insurance distribution channels in several emerging markets, however.

HE Essa Kazim, Governor of the Dubai International Financial Centre (DIFC) and Secretary General of the DIEDC said: “The takaful sector is an important component of global Islamic finance that requires more attention and research in order to address major issues and achieve long-term growth. We commend DCIBF for its thorough and precise study on prevailing trends, opportunities and threats in the takaful domain.”

Dr Mansoor Al Awar, Chancellor, HBMSU, said: “Over the last 10 years the number of takaful companies has climbed nearly four-fold, reflecting the growing global popularity of the sector and its increasing importance to the development of Islamic finance. Despite its gains, though, the industry is still under-manned and faces several issues in vital areas such as innovation, distribution, and legal structures, among others. DCIBF’s report exhaustively investigates the key factors affecting the performance and governance of takaful and what actions government and industry need to take to ensure sustained and profitable growth.”

HE Dr Abduljaleel Alblouki, Deputy Chairman of aafaq Islamic Finance, added: “ACRIE and DCIBF and DIEDC have prepared an outstanding account of the current Takaful landscape and key areas for improvement that can further increase the sector’s impact on the global Islamic economy. It was a very enlightening experience for us to join the Center in exploring the takaful industry’s mechanisms, strengths, and gaps. Our report gives takaful players and stakeholders a clearer picture of what to expect, what to address and what to aim for as the sector gains a firmer foothold on the international markets.”

Recognizing takaful’s growing importance as an Islamic alternative to insurance, HBMSU and DCIBF tapped Dr Omar Fisher to prepare the report. Dr Fisher, who earned his PhD in takaful in 2005, has founded takaful companies in three countries. He said: “The Takaful Report, a groundbreaking effort by DCIBF, looks into the global trends and major challenges facing this risk management sector by covering 219 takaful operators across 39 countries. The publication of such comprehensive report further reinforces knowledge sharing in the industry and anchors Dubai as the Capital of Global Islamic Economy.”

Produced in Arabic and English to reach a broad international audience, the scientific report examines the efficiency and financial stability of the Takaful sector in countries with dual financial and economic systems. It identifies and discusses various Islamic insurance challenges and issues, quantifies investment trends, and analyses the impacts of demand and industry structure on market movements. It also explores the governance mechanisms of the takaful industry, delves into diverse takaful operational models, and provides key recommendations to policy makers and stakeholders.

The key insights provided by Takaful: Global Challenges to Growth Performance and Governance reflect the growing role DCIBF is playing in investigating and studying major technical and socioeconomic issues affecting Islamic banking and finance. The Center is the result of HBMSU’s efforts to become the first learning institute to launch a dedicated platform for enhancing both academic knowledge and human capital development in Islamic banking and finance at the regional and international levels. DCIBF embodies HBMSU’s commitment to the provision of quality education, training, research and community service and the promotion of best practices in the field of Islamic banking and finance.

Salaam Gateway to serve as a resource for all things Islamic

Source: Salaam Gateway website.

The Vice-President and Prime Minister of the UAE and Ruler of Dubai, HH Sheikh Mohammed bin Rashid Al Maktoum, has launched the Salaam Gateway portal for Islamic economy-related industry intelligence on the first day of the Global Islamic Economy Summit (GIES 2015) at the Madinat Jumeirah, Dubai. Available in English and Arabic, the platform is also a repository of Islamic economy companies from across the globe.

An initiative of the Dubai Islamic Economy Development Centre (DIEDC) in partnership with Thomson Reuters, the platform articulates Dubai's strategy for Islamic economy development that was launched in 2013, reported WAM, the Emirates news agency.

Sheikh Mohammed bin Rashid Al Maktoum said, "The summit achieves our goal of making Dubai a hub for knowledge in the Islamic domain, and marks a major step towards the globalisation of the Islamic economy."

Named after ‘salam’ (سلام), the Arabic word for peace, Sheikh Mohammed said the gateway represents a message of peace from the UAE to the world. He said that Salaam Gateway will spread the culture of Islamic economy and build awareness of the economic opportunities available.

"After a few years, we hope to see the field of Islamic economy taking its rightful place among other fields. The electronic platform for the global Islamic economy is the first step towards achieving this goal," he added.

Abdulla Mohammed Al Awar, CEO of Dubai Islamic Economy Development Centre (DIEDC), said, "As a first-of-its-kind initiative in the Islamic digital economy, the Salaam Gateway will go a long way in strengthening Dubai’s endeavours to become a global knowledge platform and trusted reference for the fast growing Islamic economy domain."

Nadim Najjar, General Manager of Thomson Reuters in the Middle East and North Africa, said, "This platform will serve as a major source for research, information and data for business and specialists in Islamic economics, and a valuable repository for other concerned parties."

posted from Bloggeroid

Second Global Islamic Economy Summit launched

The President and Prime Minister of the UAE and Ruler of Dubai, HH Sheikh Mohammed bin Rashid Al Maktoum has inaugurated the second Global Islamic Economy Summit (GIES 2015), WAM, the Emirates news agency has reported.

Sheikh Mohammed bin Rashid Al Maktoum said the Islamic economy harmonises ethics with innovation, and combines real commitment with actual development objectives in order to meet the aspirations of humanity at large, regardless of circumstances.

"We are keen to shape a better world that is steered by unprecedented standards of progress. Islamic economy is not merely a tool for producing commodities and growing wealth, it is an incubator of values and ethics that elevate and advance human beings," he said.

Mohammad Al Gergawi, Chairman of the Board at DIEDC, said the summit will "steer the world into a new economic era in which Islamic investments will become a pillar of global economic activities." He added that the vision of Sheikh Mohammed bin Rashid has given a "contextual relevance and credibility to the Islamic economy on the global landscape".

During the summit’s inaugural session, HE Sultan Bin Saeed Al Mansouri, UAE Minister of Economy said, "GIES 2015 is today mandated to firmly set the direction and innovation that will govern Islamic economics in the years to come, in addition to creating a legislative framework for an entire spectrum of economic transactions that are likely to take place as a logical outcome of these deliberations."

Al Mansouri added: "Dubai is well poised today to achieving its vision of emerging as the global capital of the Islamic economy. Hosting the current edition of the GIE summit with its historic mandate is one more milestone in its remarkable journey."

HE Issa Kazim, Secretary General of DIEDC said that the government has launched several initiatives under the umbrella of the Dubai Islamic Economy Development Centre to promote the Islamic economy.

He said: "In the short span of time since His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, articulated the Dubai: Capital of Islamic Economy vision, this nascent sector has achieved significant milestones. Despite general consensus, the Islamic economy is so much more than Islamic finance and halal food. The sector is steadily progressing and broadening the scope of its commercial activities due to the increased demand for shari'ah-compliant alternatives across a range of products and services."

GIES is organised by the Dubai Islamic Economy Development Center (DIEDC) in collaboration with the Dubai Chamber of Commerce and Industry and Thomson Reuters. Themed Driving Innovation, Unlocking Potential, the Summit is taking place at the Madinat Jumeirah, Dubai, UAE.

posted from Bloggeroid

State of Global Islamic Economy Report outlines challenges across food and lifestyle markets

The global halal food and lifestyle sector is expected to grow at a CAGR of 6% by 2020, according to the State of the Global Islamic Economy Report 2015/2016, commissioned and supported by the Dubai Islamic Economy Development Centre (DIEDC) in partnership with Thomson Reuters and in collaboration with DinarStandard.

The global Muslim market spent US$142 billion on travel in 2014, and is expected to reach US$233 billion by 2020. The most popular destination countries for Muslim tourists are Malaysia, Turkey and the UAE, which is outpacing other countries in terms of hotel development. To meet that growth, new channels are being created, such as HalalBooking.com, a travel search and booking website for halal-conscious travellers.

Although the halal travel market segment is expected to grow at a CAGR of 8.6% by 2020, some investors are still reluctant to invest in "Muslim-friendly" hotels for fear of revenue loss associated with not serving alcohol. Banqueting, however, is considered a viable alternative revenue-generating option for Muslim-friendly hotels. According to Riyanto Sofyan, CEO of Sofyan Hotels, "The halal tourism industry is not limited to Muslims, but rather extols Islamic values that are universal and inclusive, helping to broaden our market reach and attract a wider customer base, regardless of religion."

The halal food market is expected to grow at a CAGR of 5.8% by 2020, with the demand for ethical treatment of animals alone resulting in a US$100 billion organic food market. Although the principle of treating animals humanely is embodied within the concept of halal food, educating Organisation of Islamic Cooperation (OIC) countries about the halal sector and its standards and accreditation continues to be a challenge.

The Muslim media and recreation sector has also seen an increase in demand, with new emerging media channels tailored for Muslims. An example of this is "Muslim Face", a new social media website initiative developed by Muslim entrepreneurs and aimed at bringing young Muslims together. This sector, expected to grow at a CAGR of 5.5% by 2020, is still facing the misperception that Islamic content is either religious or educational.

Contrary to the rest of the fashion industry, which is facing financial pressures as a result of global recession, the modest or Islamic fashion sector continues to expand. Islamic fashion accounts for about 11% of the global fashion industry today, and is expected to grow at a CAGR of 6% by 2020. Some of the key challenges facing the sector are the need to adopt a wider perspective when incorporating Islamic values throughout the modest fashion value chain, the lack of unified payment platforms, and variations in customs rules and regulations across countries.

In 2013, global Muslim spend in the pharmaceutical industry reached US$72 billion, and is expected to grow to US$103 billion by 2019. One of the major challenges facing the pharmaceuticals and personal care sector today is the lack of funding for research and development.

HE Majid Saif Al Ghurair, Chairman, Dubai Chamber, commented: "From clothing to food to pharmaceuticals, the demand is steadily growing and what is really needed at this point is information for the average Muslim consumer on what is available and where. This is where the State of the Global Islamic Economy Report will serve the discerning Islamic finance and halal lifestyle consumers."

Nadim Najjar, Managing Director of Thomson Reuters, Middle East and North Africa, said, "With impressive growth figures predicted over the next five years, diverse sectors within the halal lifestyle market are asserting themselves in the global economy, boosted by Muslim consumer buying power. This report will provide an invaluable tool for key stakeholders in navigating emerging trends in the industry."

The inaugural State Global Islamic Economy Report will be revealed before the Global Islamic Economy Summit (GIES). Held under the patronage of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the United Arab Emirates and Ruler of Dubai, the Global Islamic Economy Summit this year will bring together thinkers and business leaders to address these issues.

Islamic art, fashion make waves in global economy

Islamic art and fashion are growing quickly within the Islamic economy. In 2014, the Islamic, or modest, fashion sector expenditure reached US$230 billion, constituting 11% of the global fashion market. It is projected to grow a further 6% to reach US$327 billion by 2020, according to the upcoming State of the Global Islamic Economy report, to be published in conjunction with the Global Islamic Economy Summit (GIES) taking place in Dubai this October.

Art and culture are important components of the Islamic economy, and while Islamic art has always been a mainstay of museums around the world, it has increasingly gained importance as an investment. Initiatives across the GCC region, and especially in Qatar and the UAE, have turned a spotlight onto Islamic art that retains a focus on traditional religious works, while also introducing audiences to more contemporary offerings. As part of the drive within the GCC to create a more vibrant cultural profile, innovative spaces such the Mathaf in Qatar and the Guggenheim and Louvre in Abu Dhabi, as well as contemporary galleries in Dubai, are all encouraging investment in Islamic art and helping it go mainstream.

Islamic fashion is another fast-growing market and an integral pillar of the Islamic economy. Contrary to the rest of the fashion industry, which is facing financial pressures as a result of global recession, it continues to expand. Initially catering to the inherent modesty of the Muslim world, Islamic fashion is generating demand from other regions and cultures where modesty is a priority, as well as attracting attention from major mainstream fashion players.

Said a representative from Sefamerve, a leading modest fashion retailer based in Turkey with a representative in Malaysia: "While global brands that focus on modest fashion have been catering to Muslim sensibilities for years, they must also keep in mind a fast-growing conservative customer base that is also interested in modest fashion. These two complementary groups can help elevate these brands into key players in the fashion industry."

Paolo Costanzo, Chairman of Infinita Group, which represents Italian design, said: "Being part of the of the Global Islamic Economy Summit gives us the opportunity to enter the modest fashion market, a sector we believe has great potential, and one we are confident that we can support globally through our network of key players in the Italian fashion market.'

Kerim Türe, Founder and CEO of Modanisa.com, ranked the top Islamic fashion site globally, said: "Social media and the Internet are the driving factors behind the transition of Islamic fashion into the global mainstream. Women worldwide are looking for the latest trends in elegant and conservative style, in line with Islamic culture. Serving them through a one-stop shop that provides variety, quality, and excellent service is the key to success in this rapidly developing modest fashion market."

Alia Khan, Chairwoman of the New York-based Islamic Fashion and Design Council, said "People are intrigued by the Islamic fashion industry, and rightly so; there is much more to it than meets the eye. It has tremendous potential to lead and can set a wonderful example for the mainstream fashion industry, offering powerful solutions that will revolutionise fashion - while maintaining its dignity, elegance, and class."

Islamic art and fashion will both feature in the Global Islamic Economy Summit with dedicated sessions on the second day to foster discussion around these pillars of the Islamic economy. Khan will chair a moderated panel on modest fashion, with panellists including prominent players in the fashion industry from Turkey, Indonesia, Kuwait and the UK. The session on Islamic art will be chaired by Sultan Sooud Al Qassemi, Founder of Barjeel Art and includes panellists from Christies, the Jameel Foundation, Qatar Museums and the Dubai Culture and Arts Authority.

GIES 2015, which is taking place under the patronage of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, will discuss Islamic finance as part of its remit. Featuring more than 60 international speakers across 15 sessions, the summit will offer comprehensive insights on the seven core pillars of the Islamic economy: Islamic finance, halal Industry, Family tourism, Islamic Knowledge, Islamic Arts and design, Islamic digital Economy, and Islamic standards.

One of the morning sessions at GIES 2015 will discuss the importance and relevance of the Islamic economy to Islamic finance, featuring a debate by Tirad Al Mahmoud, Jamal Bin Ghalaita and Dr Adnan Chilwan, the respective CEOs of the Islamic banks ADIB, Emirates Islamic and Dubai Islamic Bank. 

The CEO debate will be followed by a session covering how Islamic financial institutions have moved from niche to mainstream. The session will also discuss whether Islamic financial institutions can meet the needs of people who are financially excluded solely for religious reasons, and whether Islamic finance can act as a financial inclusion mechanism for non-Muslims.

Interested?

The GIES 2015 summit, organised by the Dubai Chamber of Commerce & Industry, the DIEDC and Thomson Reuters, gathers over 2,000 policymakers, thinkers and business leaders on 5 and 6 October 2015 at Madinat Jumeirah, Dubai, UAE. Register here

Read the Suroor Asia blog post on GIES 2015 

Read the Suroor Asia blog post on trends identified to date by the State of the Global Islamic Economy Report 2015-2016

Read the Suroor Asia blog post on Islamic finance trends from the State of the Global Islamic Economy Report

Hashtag: #2015GIES

Islamic finance assets to appreciate by 80% over the next five years

The value of assets in the Islamic finance sector is expected to increase by 80% over the next five years, reaching US$3.24 trillion in value by 2020, according to initial findings from the upcoming State of the Global Islamic Economy report. 

The report, which is commissioned and supported by the Dubai Islamic Economy Development Centre (DIEDC) in partnership with Thomson Reuters, and in collaboration with DinarStandard, will be published ahead of the second Global Islamic Economy Summit 2015 (GIES 2015) in Dubai this October.

Islamic finance is considered the most developed sector within the various pillars of the Islamic economy. The growth in the global shari'ah-compliant economy is broadly measured by the value of Islamic finance assets. In 2014, Islamic finance assets had an estimated value of US$1.8 trillion, with Islamic banking representing 74% of total shari'ah-compliant assets, followed by 16% in outstanding sukuk based on ICD Thomson Reuters' Islamic Finance Development Indicator (IFDI 2015). According to Thomson Reuters' projections, Islamic finance is expected to grow to reach US$3.2 trillion by 2020, with Islamic banking constituting US$2.6 trillion of this figure.

There are now 1,143 Islamic financial institutions operating globally, including 436 Islamic banks/windows, 308 takaful institutions and 399 other Islamic financial institutions, such as financing and investment companies. Most of these Islamic finance institutions are located in the GCC countries and Southeast Asia, while the others are distributed between other MENA countries, South Asia and other regions. Most Islamic finance assets are held by Saudi Arabia, Iran, Malaysia and UAE.

As global acceptance of Islamic finance continues to grow, more corporates and non-Muslim sovereigns are announcing Islamic finance initiatives such as ethical or shari'ah-compliant regulations, as well as products such as sukuk issuances. This increased appetite demonstrates that the market is attracted to the benefits surrounding the ethical principles of Islamic finance, linking finance to physical assets, productive fiscal activities and real economic growth.

GIES 2015, which is taking place under the patronage of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, will discuss Islamic finance as part of its remit. Featuring more than 60 international speakers across 15 sessions, the summit will offer comprehensive insights on the seven core pillars of the Islamic economy: Islamic finance, Halal Industry, Family tourism, Islamic Knowledge, Islamic Arts and design, Islamic Digital Economy, and Islamic standards.

One of the morning sessions at GIES 2015 will discuss the importance and relevance of the Islamic economy to Islamic finance, featuring a debate by Tirad Al Mahmoud, Jamal Bin Ghalaita and Dr Adnan Chilwan, the respective CEOs of the Islamic banks ADIB, Emirates Islamic and Dubai Islamic Bank. 

The CEO debate will be followed by a session covering how Islamic financial institutions have moved from niche to mainstream. The session will also discuss whether Islamic financial institutions can meet the needs of people who are financially excluded solely for religious reasons, and whether Islamic finance can act as a financial inclusion mechanism for non-Muslims.

Interested?

The GIES 2015 summit, organised by the Dubai Chamber of Commerce & Industry, the DIEDC and Thomson Reuters, gathers over 2,000 policymakers, thinkers and business leaders on 5 and 6 October 2015 at Madinat Jumeirah, Dubai, UAE. Register here

Read the Suroor Asia blog post on GIES 2015 

Read the Suroor Asia blog post on trends identified to date by the State of the Global Islamic Economy Report 2015-2016

Hashtag: #2015GIES

Global Islamic Economy Summit to take place this October

The 2015 Global Islamic Economy Summit (GIES 2015) follows on from the inaugural event in 2013, which introduced the concept of a cohesive global Islamic economy. This year's event will discuss benefits of such an economy, say organisers the Dubai Chamber of Commerce & Industry and Thomson Reuters.

The event website explains that the Islamic economy is a way of life, through products, experiences, services, processes and relationships, that is halal, ethical, wholesome and family-friendly.

HE Majid Saif Al Ghurair, Chairman of Dubai Chamber of Commerce & Industry, said: "Dubai has played a central role in the growth story of the global Islamic economy and we are convening top business minds and enterprising young individuals to hear from them new ideas and insights that can positively shape the industry further."

Abdulla Mohammed Al Awar, CEO of the Dubai Islamic Economy Development Centre (DIEDC), added: "The summit is designed to give a full picture of the Islamic Economy with a focus on the breadth of sectors underpinning the phenomenal growth and highlight the impact of trends that we all contribute towards in our everyday lives."

Nadim Najjar, Managing Director of Thomson Reuters, Middle East and North Africa, commented: "We have assembled two days of programming for delegates attending GIES 2015 which will explore how the Islamic economy is having an increasing effect at the global level, and how it presents viable solutions well beyond the typical sectors of banking and finance."

This year’s Summit will host over 2,000 policymakers and business leaders, and cover issues affecting the Islamic economy, including business and investment opportunities in Islamic finance and insurance; the halal food value chain, from manufacturing to logistics; halal product manufacturing; tourism; and small- to medium-sized enterprises (SMEs).

Interested?

Held under the patronage of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the United Arab Emirates and Ruler of Dubai, the Global Islamic Economy Summit 2015 will be held at Madinat Jumeirah, Dubai, UAE on October 5 and 6 2015.

Read the Suroor Asia blog post on the State of the Global Islamic Economy Report 2015-2016

Hashtag: #2015GIES