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IABS -International Arab Banking Summit
"Euro-Arab Economic Dialogue"
23.- 24. Juni 2005, Frankfurt am Main - Marriott Hotel
WorkshopIslamic Banking and Europe:
Exploring Future Trends
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Current Market
Statistical data about the market size and growth very
limited
General Council for Islamic Banks and Financial Institutions
(CIBAFI):
2004: market size ca. USD 270 bn
Noriba: similar size estimated for Islamic windows Totalling
around USD 500 bn in 2004
Growth rates estimatedwith 15 % p.a.; any proof unknown
New Islamic banks worldwide either as fully licensed banks or
windows
Europe:
September 2004: Islamic Bank of Britain licensed
April 2005: European Islamic Investment Bank funded
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InsuranceMoney lending
Asset Finance Equity Services
Non profit area Profit area
Takafulnext to enter
Europe
Interest-freelending:
niche inSweden
Dominatingthe Islamic
financeindustry
Private Equitygrowth sector
in the Gulfcountries
Consultingand services
not yet
significantbusiness trend
Overview
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Insurance - Takaful
Solidarity Bahrain plans expansion to Europe
Islamic Bank of Britain wants to establish Takaful
Other market players going to enter the takaful market
Currently integration Banking Takaful weak, cross selling very
low Funds under management will be attractive for asset
managers:
Friends Provident will manage Assets in Europe for
Solidarity...
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Asset Finance: Sukuk a megatrend
Annual volume 2004 below USD 7 bn an extreme niche market
Drivers: Islamic banks and private client portfolios
Capital adequacy and liquidity rules for Islamic banks resulting
in need
for Sukuk Private clients dominated by real estate and stock
market investments
fixed income products like Sukuk desperately needed
Sukuk market will grow: 5 years from now potential USD 150
bn
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Megatrends in Islamic Banking
"The Islamic banking industry still needs some big institution
to cater tothe needs of primary and secondary markets. Over 82 per
cent of theIslamic banks have $25 million or less assets, which
really narrows their
scope to participate in any kind of activity," Dr Al Khoja
said.
Bahrain Tribune - 17/05/2005
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Megatrends in Islamic Banking
Capital increase and potential mergers to enable larger deal
sizes
Creation of one or more high capitalised Islamic banks
European Islamic Investment Bank:
paid up capital: GBP 110 mn (later GBP 300 mn) GCC: USD 1 bn
initial paid up capital in formation (later USD 2 bn)
Starting to integrate Takaful and Islamic Banking
Globalisation: Sudan gains Momentum, Nigeria next Singapore
committed
More sophiscated product range
Higher standardisation
Professionalization: Corporate Governance standards (IFSB, Kuala
Lumpur)
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Megatrends leads to an industry ...
2010: Sukuk market USD 150 bn ?
Total size of Islamic banking niche: USD 1000 bn ?
... w e w o r k o n it !
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Contact Details
Michael Gassner Phone: +49 7000 42 77 637Consultancy Fax: +49
7000 42 77 637Kyffhuserstr. 8 [email protected]
Cologne www.IslamicFinance.deGermany
What we do as consultant:
Structuring: Coordination of Shariah, tax, legal and market
issues Marketing: Direct investments, roadshows, market strategy
Training: Introduction, Sukuk, Wealth Management, Private Equity
... Publications: IslamicFinance.de Executive News - monthly free
ofcharge newsletter based on ongoing research
Independent consultancy firm with international network, e.g.
ShapeTM
