Archipelago International to manage two Makkah hotels targeted at SEA guests

Source: Archipelago International. Byrne (left) with Al-Amoudi (right).

Archipelago International, Southeast Asia's largest privately owned and independent hotel management group, has signed hotel management agreements with Jabal Omar Development Company (JODC), a real estate development provider in KSA, for two hotels in their Jabal Omar project.

The hotels concerned are the five-star Luxury Jabal Omar The Royal Alana Makkah, which has 581 rooms, and the five-star Jabal Omar The Alana Makkah which has 560 rooms. The hotels, which are in Phase 4 of the Jabal Omar project, are currently under construction and are situated adjacent to each other in a prime location overlooking the Holy Mosque.

"We are fortunate to work with a partner like JODC who understands the value and importance of superior hospitality experiences that are specifically customised to the needs of guests from Southeast Asia and in particular Malaysia, Indonesia and Brunei. Southeast Asia is one of the fastest growing and strategically important source markets for the kingdom and its Vision 2030 programme. 

"Our positioning, brand equity and infrastructure in these markets means we can deliver for our partners and add significant value to projects, not only in the holy cities, but throughout the kingdom and the region," said Gerard Byrne, MD, Archipelago Overseas.

Khaled Al-Amoudi, CEO, JODC confirmed that "the company is striving throughout its journey of accomplishments to keep up with the ambitious vision of Saudi Arabia 2030 in supporting the hospitality sector and enhancing the spiritual experience of pilgrims, by expanding our partnerships with a group of international hotel brands at the Jabal Omar destination."

"Therefore, Archipelago, a global company with a proven track record in Southeast Asia, has been attracted with the aim of joining the Jabal Omar Royal Alana Hotel and the Jabal Omar Alana Hotel within Jabal Omar's distinguished hotel group," he said.

"Through this partnership, Jabal Omar and Archipelago are keen to enrich the experience of our guests by providing the highest standards of quality and performance throughout their religious and cultural journey in Makkah and to help them perform their rituals and return home with the most beautiful and unforgettable spiritual memories."

Bank Islam Malaysia to build integrated risk framework on Kamakura risk management platform

Kamakura Corporation has completed an agreement to implement the Kamakura Corporation suite of solutions for Bank Islam Malaysia for its balance sheet management, funds transfer pricing, and liquidity management processes.

The project will involve the complete implementation of the balance sheet management and funds transfer pricing solutions and followed a comprehensive evaluation exercise involving a complete proof of concept. Dr Clement Ooi, EVP and Managing Director, Asia-Pacific Operations, Kamakura Corporation stated, "Bank Islam had a very clear understanding of its risk management and liquidity compliance needs. The vendor selection process had an extensive testing routine, and the Kamakura suite of solutions was an apt fit.

"Bank Islam not only has a range of intriguing products, but also a transaction volume that necessitated in them seeking a modular and integrated solution. The project will provide the bank with accurate assessment of transaction cashflows that can then be used for gap, duration, and mismatch management, as well as an accurate assessment of the margins associated with the transaction. All of these can be modelled based on different market conditions implying that the bank is prepared for any adverse movements in market conditions."

Dr Ooi said the Kamakura platform will be the basis for the bank's integrated risk framework. "The bank will be one of the first to be able to generate both historical and forward-looking views of the balance sheet, a transaction-level understanding of the profit margins and a good appreciation of customer, product, business unit, and organisational profit and value dynamics," he said.

Martin Zorn, President and COO for Kamakura Corporation said, "The successful implementation of the balance sheet management, funds transfer pricing, and liquidity compliance project in Bank Islam is a clear indicator that banks are no longer looking for fragmented solutions for risk and compliance, but seek to adopt a customised framework that allows for the repeated use of data loaded once for various aspects of risk and compliance. It is a testimony to the credentials of Kamakura's subject matter experts.

"Kamakura is well-positioned to meet the burgeoning regulatory demands imposed on financial institutions in the region and has the wherewithal to keep pace with regulation; as a matter of fact, what is currently being introduced as risk regulation has been available in Kamakura Risk Manager for the past 10 years."

Bank Islam, the first shari'ah-based banking institution in Southeast Asia, was established primarily to assist the financial needs of Malaysia's Muslim population, and has since extended its services to the broader non-Muslim population fulfilling its Banking-for-All principle. It provided technical assistance in the setting up of several Islamic institutions in the Asian region such as Indonesia, Thailand and Sri Lanka.

The bank offers 70 Islamic banking products and services to more than 5 million customers. Bank Islam's network in Malaysia consists of 147 branches and more than 1,200 self-service terminals. Primarily a retail bank with consumer banking constituting more than 70% of total financing, Bank Islam's list of products ranges from the traditional financing, savings and investment solutions for individual customers, to banking and financial solutions designed to fulfil the fast-changing financial needs of customers from all categories including those related to micro financing, wealth management, capital market, and treasury.

Emirates Islamic presents 2017 investment outlook

Source: Emirates Islamic. Jamal (left) and Dugan (right).

Emirates Islamic, a UAE-based Islamic financial institution has shared the investment outlook for 2017 with its wealth management clients in Abu Dhabi and Dubai.

Presented by Gary Dugan, Chief Investment Officer (CIO) for Emirates NBD, Dealing with Global Disruptors - Investment Outlook for 2017 detailed disruptions to the global economy in the last year which have created challenges to conventional wisdom. Citing events such as Brexit, US President Donald Trump’s victory, the rise of Indian Prime Minister Narendra Modi and the launch of the Tesla car as global disruptors, Dugan said: “These political and technological events were major surprises to global financial markets, and have triggered significant shifts in the valuations of currencies and asset classes. More importantly, they have forced investors around the globe to rethink their long-term investment strategies.”

Explaining that the disruptions to conventional wisdom would most likely continue through 2017, Dugan advised, "Given the ongoing volatile global economic and political environment, it is important to invest in countries and sectors that offer long term growth and value. We believe for example, that sectors like technology and healthcare and countries like India offer relative value in current environment. As a general principle, investments should focus on preserving capital, while at the same time achieving reasonable profit levels.”

“Gold continues to play an important role for us. The yellow metal price has continued to deliver returns and remains a key diversification component for investment portfolios,” he added.

The investment outlook event was in keeping with Emirates Islamic’s vision to be a leading Islamic bank in the region. The bank has continued to build on its long-term relationship with customers, through a ‘customer first’ approach, which focuses on personalised financial services.

Jamal Bin Ghalaita, CEO, Emirates Islamic said: “Wealth management is one of the key pillars of the banking proposition at Emirates Islamic, and we aim to provide personalised wealth advisory services to our clients through a comprehensive platform, backed by in-depth knowledge in Islamic finance and extensive expertise in local and regional investments. The continued collaboration with global Islamic finance solutions providers also empowers Emirates Islamic to provide additional value to clients, and enables us to move closer to our goal of becoming the preferred provider of shari’ah-compliant wealth management solutions in the region.”

Interested?

Read the Suroor Asia blog post about the shari'ah standard for gold

Alizz Islamic Bank launches Tharwa Wealth Management

Source: Alizz Islamic Bank. The launch ceremony for Tharwa Wealth Management Segment was held under the patronage of HE Yahya bin Said Al Jabri, Chairman of the Special Economic Zone Authority Duqm, in the presence of HH Sayyid Taimur bin As'ad Al Said, Chairman of the Board of Directors of Alizz Islamic Bank, The Honorable Salaam bin Said Al Shaksy, CEO of the bank, and Moosa Al Jadidi COO of the bank.

Alizz Islamic Bank has launched the Tharwa Wealth Management Segment as a significant pillar for the bank.

Tharwa offers services led by a team of seasoned relationship managers that will be available at all branches. The managers can be assigned to meet any customer at a location convenient to the customer. The team ensures that customer requirements are always met and provide special advisory about products and services most suitable to customers’ needs.

Tharwa customers have exclusive privileges, including access to special discounts on travel, accommodation, restaurants, entertainment and various VIP services. They have access to exclusive Tharwa lounges across the sultanate, which are designed to ensure privacy in conducting their banking transactions and round-the-clock access to online and mobile banking services.

In addition, Tharwa customers can manage their money through the Izdihar sweep savings account, which adheres to the Islamic principle of unrestricted mudarabah. Amongst the many advantages of the Izdihar savings account are attractive expected profit rates, immediate access to funds and linkage to a current account that offers flexible withdrawals through a cheque book, while the customer earns generated profit on a monthly basis.

Alizz Islamic Bank also launched the MasterCard World Credit Card for Tharwa customers at the same time. The card offers customers complete flexibility to explore international destinations and access to several hospitality services in more than 400 cities around the world. The cardholder is also entitled to a free night 's stay and an immediate upgrade at all Starwood Hotels & Resorts, as well as an insurance cover for travel, accident, and medical services of up to US$2,000,000.

Moosa Al Jadidi, COO, Alizz Islamic Bank said: "This segment has been designed to provide world-class banking services to high net worth individuals in the country. The launch of Tharwa also marks Alizz Islamic Bank’s launch of the MasterCard World card for these exclusive customers. Alizz is proud to provide premium services catering to the needs of our customers. We adopt a comprehensive approach centered around customers and have assigned a dedicated team of experts to provide world class services.

"We are committed to provide our customers with unparalleled banking services to guarantee the quality of service and peace of mind through a wide range of shari’ah-compliant products and services. All our banking solutions are designed to guarantee our customers have the flexibility to complete their banking transactions with ease.”

Alizz Islamic Bank was established to strengthen the Islamic banking services in the Sultanate through its innovative banking solutions. It is the only bank in Oman that offers 35 products that meet the needs of both individual and corporate clients. All products and services provided by Alizz Islamic Bank have been approved by the Fatwa and Shari'a Supervisory Board. In the last few months, the bank has also introduced dedicated services to the small and medium enterprises as part of its efforts to offer diverse banking solutions to all segments of  society.

Pergas uses mobile app for recycling, fund-raising

Pergas, the Singapore Islamic scholars and religious teachers association,  is helping waste management efforts in Singapore with the Recycle@PERGAS app, which allows consumers to have their recyclables collected on demand.

Provided by the Sapphiro Group, the app supports the four official languages and allows home owners to book a collection time for recyclables within working hours, which are Monday to Saturday, between 9am and 5pm, islandwide.

Pergas is also using the app for the collection of used items for fund-raising. These will be collected by volunteers from Buana Trading wearing white Pergas t-shirts carrying the logo on the left part of the chest, and the word 'VOLUNTEER' at the back.

Interested?

Download the app from the App store or Google Play

Call +65 8262 3555 with enquiries about the volunteer initiative.

Labuan IBFC begins ASEAN roadshows with session on shari'ah-compliant solutions

Labuan International Business and Financial Centre (Labuan IBFC), Asia Pacific’s midshore international business and financial centre, has launched a series of roadshows across ASEAN.

The Labuan IBFC ASEAN Roadshow 2016 will visit key countries in ASEAN and, for the first time will include events as well as closed door briefings in the emerging economies of Cambodia, Laos, Vietnam and Myanmar. The roadshows have kicked off in Jakarta, Indonesia, will continue through till end-July.

“Our approach to the roadshow this year is distinct as we are targeting business owners in the region looking to internationalise or even regionalise their businesses. We believe that with as businesses embrace higher tax transparency requirements, it would be natural for them to consider to establishing substance in a well-regulated jurisdiction facilitate cross border transactions and investments.” said Danial Mah Abdullah, Chief Executive Officer, Labuan IBFC.

He went on to state that the roadshow will also focus in meeting the wealth management needs in the region, adding that as ASEAN has a large Muslim population, the Jakarta chapter of the roadshow focuses on shari'ah-compliant wealth management solutions.

Themed Innovative Solutions towards Islamic Wealth Management the kickoff masterclass was aimed at Indonesian service providers, intermediaries and high net worth individuals who are looking to better understand shari'ah-compliant wealth management offerings, wealth preservation and succession planning solutions.

Mah, who is also the Deputy Director General of Labuan FSA, said, “What makes Labuan IBFC different is that it was established with the main aim of intermediating crossborder trade and investments in the region. The expectations are that intra-Asia and ASEAN trade and investments will grow, and there is a need for a well-regulated jurisdiction in the region able to facilitate these trades and investments. ”

The masterclass included a presentation on the Labuan International Waqf Foundation, a shari'ah-compliant wealth management tool, which incorporates the element of waqf* (وقف‎) in its structure.

Labuan IBFC is the only jurisdiction in the region offering foundation structures including Islamic foundations with waqf elements built in.

The event also included a panel session titled Opportunity and Challenges: Islamic Wealth Management in Asia with Dr Aida Othman, Director at ZICO Law Shariah Advisory Services, Maikel Sajangbati, CEO and Founder of MaeSa Consulting Indonesia as well as Aderi Adnan, Business Development Director of Labuan IBFC.

The panel focused on the new Islamic wealth management environment in light of more stringent global regulatory requirements, evolving Islamic wealth management strategies amidst changing family legacy mindsets, experiences and cultural differences in Asia.

Interested?

View event details


*Waqf refers to a donation made for a religious, educational or charitable cause.

posted from Bloggeroid

KFH Bahrain launches Wealth Management Department

KFH-Bahrain’s Wealth Management Department has been officially launched. 

Abdul Razak Jawahery, Executive Manager at KFH-Bahrain; Head of Wealth Management commented, “Upon the successful soft launch of the Wealth Management department, we were able to evaluate and identify a good appetite towards our products and offerings which enabled us to accelerate our strategies for those clients who were sitting on significant capital value within their own business models.”

Jawahery explained that the department can invest in large institutional strategies. "Our clients benefit from various depositor accounts having a number of privileges and features from international murabahah and mudarabah. As their personalised investment command centre, we provide a number of investment products in both discretionary and non-discretionary methods for equities and sukuk. For investments in real estate there are a number of opportunities in the Kingdom of Bahrain and the UK to select from, and, as part of our expansion plans, the department is developing key strategies to launch commodities and real estate opportunities in other geographic areas.”

Interested?

The Wealth Management Department at KFH-Bahrain offers a range of Islamic wealth management products and services. Contact the team at 77 000 500 in Bahrain.

BNP Paribas-INCEIF CIWM co-launch booklet on socially responsible investing

Source: INCEIF. From left: INCEIF Deputy President (Academic), Professor Datuk Syed Othman Alhabshi, BNP Paribas Malaysia chairman Dato’ Abdullah Mat Noh and Director of the MIFC Promotion Unit Nik Mohd Din at the launch of the SRI booklet during the Managing Risks in Islamic Finance Industry symposium organised by CIWM.

The BNP Paribas – INCEIF Centre for Islamic Wealth Management (CIWM) has launched a booklet about socially responsible investing (SRI) titled SRI (Sustainable Responsible and Impactful) & the Case for Islamic Funds. The SRI booklet is a joint effort between CIWM and the Malaysian International Islamic Financial Centre (MIFC) to raise awareness on the inextricable link between sustainable and shari'ah compliant investments. 

The booklet has three sections: 

Foundation and growth of investing through principles
Investors' increasing attraction for the SRIs
The case of emerging markets, Islamic investments and the Malaysian option

The key objective of this publication is to create awareness on shared SRI and Islamic finance value propositions and develop a global interest for SRI sukuk. It also seeks to support business engagements in securing SRI mandates and environmental, social and governance-based business. 

Labuan IBFC reports strong performance for Islamic finance in 2014

Labuan International Business and Financial Centre (Labuan IBFC), Asia Pacific’s midshore international business and financial centre, reported strong performance across all financial sectors in 2014, including banking, insurance, leasing, wealth management and Islamic finance, with 12.3% increase in new company registrations compared to the previous year.

The organisation notes that 70% of companies registered in Labuan IBFC originate from Asia, with 57% from Southeast Asia, mainly Indonesia, Malaysia, Singapore and Thailand.

“Labuan IBFC has its strengths in terms of its proximity to strategic Asian markets and sound regulatory framework, with simple as well as competitive tax system. With our balanced supervisory and regulatory framework coupled with our strategic location in the heart of Asia Pacific, we believe Labuan IBFC stands out as the ideal ‘midshore’ jurisdiction from which to base regional business operations for both trading and investment purposes,” said Danial Mah Abdullah, Chief Executive Officer at Labuan IBFC.

In the wealth management sector, Labuan IBFC foundations are increasingly used as wealth preservation solutions. There was an almost 40% increase in the number of Labuan IBFC foundations established in 2014 compared to the previous year, with 73% of them originating from Asia.

While wealth management is one of the core offerings of Labuan IBFC, the business and financial centre also carries out all aspects of business and financial activity ranging from banking and insurance to Islamic financial services.

IILM reissues US$860 million sukuk, adds two partners

The International Islamic Liquidity Management Corporation (IILM) has reissued US$860 million worth of sukūk. The three-month tenor sukūk, priced at 0.63960% profit, marks the 20th series of short-term IILM sukūk.

The IILM has also disclosed that Qatar Islamic Bank and Boubyan Bank are now in the list of its primary dealers, extending IILM's distribution network to 11 primary dealers. The reissuance was fully subscribed by the following primary dealers, in alphabetical order:

Abu Dhabi Islamic Bank
Al Baraka Turk
Barwa Bank
Boubyan Bank
CIMB Islamic Bank
Kuwait Finance House
Maybank Islamic
National Bank of Abu Dhabi
Qatar Islamic Bank
Qatar National Bank; and
Standard Chartered Bank.

As at October 2015, the IILM sukūk that have been issued and reissued were worth US$12.69 billion.

Arab Monetary Fund and International Islamic Liquidit Management Corp to promote financial inclusion in the Arab world

The Arab Monetary Fund and International Islamic Liquidity Management Corporation (IILM) have agreed to cooperate with an MoU that will allow the two parties to launch joint activities and programmes that help support economic development, opportunities, as well as to promote financial inclusion in the Arab region.

The two institutions will work together to provide technical support services and to build capabilities to develop the Islamic finance industry. The Arab Monetary Fund will contribute its expertise on the region, while the IILM will facilitate liquidity management for institutions that offer Islamic financial services.

Professor Datuk Rifaat Ahmed Abdel Karim, Chief Executive Officer of the IILM said, “This collaboration is in line with the objectives of the IILM to facilitate liquidity management for Islamic financial services in the Arab region thereby enhancing their resilience and ability to meet future economic challenges. The development of a systemic shari’ah-compliant liquidity management infrastructure, accepted across multi - jurisdictions in which Islamic financial services operate, is instrumental towards ensuring sustainable financial stability.”

HE Dr Abdulrahman Al Hamidy, Director General Chairman of the Board, Arab Monetary Fund, said that that the signing of this memorandum is within the framework of the Fund's interest to develop its activities and programmes in the field of Islamic finance and financial inclusion. Furthermore the MoU attempts to consolidate relations with institutions and related bodies especially with the IILM and its role in supporting the opportunities of the development of Islamic industry.

The Arab Monetary Fund works to strengthen the foundations of monetary integration of the Arab economies, and provides financial and technical support for economic and financial reforms undertaken by the Arab countries to support the development and improvement of growth opportunities. On the other hand, the IILM aims to assist in the development of the Islamic finance industry by facilitating liquidity management for institutions that offer Islamic financial services.

Incident management goes smoothly at the Makkah and Madinah mosques over Ramadhan

The Saudi Director General of Civil Defense General Sulaiman bin Abdullah Al-Amro has announced that the third phase of the crisis plan for caring of worshippers at the two main mosques during the fasting month of Ramadhan went smoothly, the Saudi Press Agency has reported.

General Sulaiman said the civil defence forces are ready to resolve any emergencies during the last night of Quran recitation over the month, and throughout the Eid Al-Fitr holidays.

He reported minor cases inside the Makkah-based Grand Mosque and Madinah-based Prophet's Mosque, including fatigue experienced by some of the elders and the chronically ill among the pilgrims. 

IILM reissues US$490 million sukuk tranche

The International Islamic Liquidity Management Corporation (IILM) has successfully reissued a US$490 million tranche of sukuk with a three-month tenor priced at a 0.58100% profit rate. This marks the 16th tranche in a series of short-term sukuk issued and reissued by the IILM, rated A -1 by Standard and Poor’s Rating Services. The following primary dealers participated in the reissue, which was oversubscribed :

1. Abu Dhabi Islamic Bank
2. Al Baraka Turk
3. Barwa Bank
4. CIMB Islamic Bank
5. KBL Private Bankers
6. Kuwait Finance House
7. Maybank Islamic
8. National Bank of Abu Dhabi
9. Qatar National Bank and
10. Standard Chartered Bank.

As at May 2015, the IILM has issued and reissued US$9.98 billion of sukuk.

Hospitality Management Holdings lands operations contracts for hotels in Al Madina Al Munawarrah

Source: HMH - Hospitality Management Holdings. Laurent Voivenel, CEO, HMH – Hospitality Management Holdings and Al Sheikh Mohamed Ebrahim Abdulrahim, Owner, Mobarak Hotels Group.

HMH – Hospitality Management Holdings has entered into a management agreement with Mobarak Hotels Group for the operation of Coral Al Madina Hotel in Al Madina Al Munawarrah in Saudi Arabia.

Al Sheikh Mohamed Ebrahim Abdulrahim, Chairman of Mobarak Hotels Group said, “Our business vision is in line with the Saudi authorities’ plans for expanding the Holy Mosque of Prophet Mohammad and development of adjoining area. Therefore, Mobarak Hotels Group has appointed Designs Company that is specialised in providing integrated hotel solutions to oversee our growth and expansion. As part of this strategic agreement Designs Company will be responsible for developing world-class hospitality products and facilities around the Holy Mosque to meet the needs of growing Hajj and Umrah pilgrims. With an initial investment of SR1 billion, Designs Company and Mobarak Hotels Groups have entered into a management contract with HMH – Hospitality Management Holdings for operating Coral Al Madina Hotel. As part of this strategic understanding, we will hand over the management of four other 4-star hotels under development in the same area to HMH.”

Laurent Voivenel, CEO of HMH said, “Saudi Arabia is a key development market for HMH. We are very proud to debut in the Holy City of Madina and to enter into this very important partnership with Mobarak Hotels Group. We are truly grateful to them for having given us this opportunity. The hospitality industry in Madina is witnessing remarkable growth at the moment and we are very excited to be part of it. HMH is well-positioned in the Kingdom as one of the leading regional hotel groups equipped with the most advanced technology. We are confident Coral Al Madina Hotel will add tremendous value to our growing presence in Saudi Arabia and further strengthen our portfolio”.

Al Sheikh Mohamed stressed, “Coral Al Madina Hotel has been conceived to be a prestigious address for discerning travellers to Madina and is superbly located just across the road overlooking the Holy Mosque. It is a very significant project for us and we are pleased to appoint HMH as the operator who are well-equipped to meet the needs of the Saudi hotel sector in accordance with the best international standards.”

Featuring 400 plus rooms and suites, Coral Al Madina Hotel is spread over 10 floors and five basements. It has three restaurants, lobby lounge, luggage room, shopping arcade, gym and spa, two meeting rooms, business centre and parking space as well as helicopter landing site. The 5-star hotel is expected to welcome its first guests by Ramadhan 2015.

Hajj and umrah tourism are the mainstay of the Saudi economy. The number of pilgrims, which stood at 2 million in 2013, is expected to increase to 5.2 million by 2025. Aviation and hospitality infrastructure are, therefore, being rapidly developed to boost opportunities in Haj and Umrah.

The expansion of the airport in Jeddah is expected to accommodate 80 million people by 2035. At the same time Prince Muhammad bin Abdulaziz International Airport in Madina is undergoing expansion with 83% of the project already complete. Madinah Airport is considered the third-most important gateway to Saudi Arabia and the second-most important airport during the Hajj and umrah pilgrimage seasons.

Madina receives an estimated 11 million visitors per year. Aviation traffic is slated to increase by 27% with the new expansion. The first phase of the project will be ready by early January 2015. The airport will accommodate nearly 8 million travellers annually once it starts operating. Upcoming phases include increasing airport capacity to 14 million passengers a year, while the third phase will see the premises accommodate almost 27 million people.

HMH – Hospitality Management Holdings is a fully-integrated hotel management company that prides itself on being the first hotel chain in the Middle East to offer an alcohol-free environment. It provides hotel owners and developers a broad spectrum of comprehensive management solutions with five distinct hotel brands, including The Ajman Palace Hotel, Coral Hotels & Resorts, Corp Hotels, EWA Hotel Apartments and ECOS Hotels. 

OIC benchmarking study identifies areas that could improve economies

The fifty-seven countries that form the Organization for Islamic Cooperation (OIC) account for 23% of the world's population, but under 11% of the world's GDP. These results, part of a benchmarking study from the University of Toronto's Rotman School of Management and the Saudi Arabia-based Madinah Institute for Leadership and Entrepreneurship (MILE), were revealed on June 24. 

The study aims to better understand the factors which underlie the economic performance of the world's Muslim economies. Working with a group of Rotman MBA students including Abhishek Chaudhary, MBA'14; Omer Saleem Morning MBA'15; and Ash Zare, Evening MBA'15, Professor Walid Hejazi from the Rotman School and Imran Zawwar from MILE benchmarked the fifty-seven OIC countries on over 100 indicators, finding that countries such as the UAE, Bahrain, and Qatar rank among the world's best economies on many dimensions, and Malaysia and Turkey on others. In countries with significant poverty, there are also significantly higher probabilities of self-employment.

Researchers also found that the OIC countries:

• have average incomes which are less than half the world average;
• rank below global averages on institutional development, including voice and accountability, political stability, government effectiveness, regulatory quality, rule of law and control of corruption (World Bank Governance Indicators);
• rank unfavourably on the ease of doing business;
• lag world averages on literacy and education, particularly among females;
• while not lagging world averages on labour market participation rates for males, there is a significant gap for females; and,
• lag other developing nations on R&D efforts.

"Together these factors are capable of explaining a large part of the gap between incomes in the Muslim world and the developed world. The implications of these analyses underscore the need for efforts to improve these indicators across the Muslim world," says Prof. Hejazi. 

"We hope our systematic and comprehensive analysis will allow for the creation of well-informed and feasible policies to enhance the economic performance of the world's Muslim countries. As is well known, as incomes rise and countries develop, institutions tend to improve, resulting in improvements in political stability, human rights and a whole host of other indicators."

The study is the first from a collaboration between MILE and Rotman. More reports are planned for release over the next year.