The 12th International Islamic Finance Forum (IIFF), which is due to take place at the Jumeirah Beach Hotel, Dubai on 2-5 April 2007, will explore potential strategies for growth and diversification, by focusing on a recent research study conducted by international consultancy firm KPMG. According to the report a number of key issues were highlighted such as acquisitions in the conventional banking sector, to broaden its access to the estimated 1.5 billion people globally with unprecedented levels of liquidity.
Swati Taneja, Conference Manager, IIFF, said, “Given the liquidity generated by the energy wealth in the Middle East, we could soon see an Islamic financial institution seek to acquire a major global player in the conventional financial markets to generate critical mass and acquire market share.”
To put those hydrocarbon riches into perspective, the combined wealth alone of the 300,000 millionaires in the Middle East is estimated to be US$ 1.4 trillion. Indeed with Kuwaiti investors currently bidding for Malaysian banks, the creation of an Islamic ‘mega-bank’ is a distinct possibility and underlines the industry’s aspirations to develop a truly global aspect.
“Competition is heating up as large global financial players take on local institutions. That competition is evidence of the worldwide interest the industry has generated,” added Taneja.
Internationally, the sector is enjoying double-digit growth and capturing the attention of non-Muslims, the KPMG report claims. In terms of volume as opposed to value, London has become a major trading centre for Islamic funds and a quarter of all Islamic banking business in Malaysia is conducted by non-Muslims. The Central Bank of Malaysia sees non-Muslim investment as the key to future market growth.
Andrew Jackson, Chief Executive Officer, KPMG, Saudi Arabia, who will be presenting a research study at the forum, ‘Growth And Diversification In Islamic Finance’ commented, “To illustrate the rapid growth of the Islamic finance industry, the Bahrain-based Liquidity Management Centre, had estimated the size of the Sukuk market alone to be worth US$ 18 billion by the first quarter of 2006.”
Featuring on the IIFF agenda are a number of case studies on recent Sukuk issues, including the Saudi Basic Industries Corporation Sukuk. This was a first in Saudi Arabia, a SAR 3 billion domestic issue exclusively for Saudi investors. Another high profile Sukuk was issued by Nakheel, a member of Dubai World. At US$3.5 billion, this became the world's largest Sukuk, listing on the Dubai International Financial Exchange (DIFX). It also confirmed DIFX as the largest exchange in the world for Sukuks by listed value.
IIFF Dubai has an unrivalled line-up of over 50 regional and international expert speakers, plus 20 hours of networking for Islamic finance professionals, scholars and academics from both private and public sectors.
Delivering the keynote address at the forum is Anwar Ibrahim, Former Deputy Prime Minister and Minister of Finance of Malaysia and President of Accountability, Malaysia. Ibrahim will set the tone for the conference by sharing his thoughts and experiences in the opening session entitled, ‘Facing A New Synthesis In Islamic Financial Markets’.
Other key speakers include amongst others, Michael Ainley, Head of Wholesale Banks and Investment Firms Department, Financial Services Authority, UK; Faten Hani, Head of Education Centre, Dubai International Financial Centre, UAE; K. Salman Younis, Managing Director, Kuwait Finance House (Malaysia) Berhad; Hussein A. Hassan, Vice President – Global Market, Deutsche Bank, UAE.
The International Islamic Finance Forum has also attracted solid industry backing. Apart from the forum’s strategic partner, Tejoori, Dubai Bank (diamond),
Nur Advisors (platinum), Path Solutions (gold) and EIIB & Oracle (silver) are sponsoring the event.
