Wealth Management

Wealth creation is faster in Middle East: HNWIs

A majority of high net worth individuals (HNWIs) in the Middle East believe wealth creation is faster today than in the past, according to the latest report of Barclays Wealth Insights. Over half (60%) of respondents in the Middle East agreed that wealth can be created faster today than in the past, in comparison to 43 per cent in Europe and 31 per cent in North America. Interestingly, more than half (54%) of Middle Eastern respondents stated that personal investments have contributed largely to their overall wealth portfolio, compared to other sources of income such as inheritance at 49 per cent. In terms of how this wealth is used, HNWIs in the Middle East have a tendency to allocate more of their resources to personal property than to tangible assets and collectibles. Many HNWIs around the world now prefer to give their money to family and friends and charitable causes in their lifetime rather than as inheritance, the report revealed.

Wealth management firm Crescent Wealth has launched a new ultra-ethical, Shariah-compliant superannuation fund.

Crescent Wealth has developed its own platform for its four investment options and has appointed Corporate Combined Superannuation (CCSL) as trustee. The Shariah-compliant funds - Australian equities, international equities, income fund and Australian infrastructure and property - were previously only available on the Association of Independently Owned Financial Planners Personal Choice Private e-wrap platform, after they were launched late last year. The company is also in talks with industry super funds to white-label the product as an ultra-ethical investment option. Although the product follows Islamic finance principles, the company expects the majority of its clients to be attracted to its ultra-ethical investing philosophy

Malaysia: Wealth Management In Southeast Asia: Trends And Growth

Malaysia Minister of Finance II Y.B. Dato' Seri Ahmad Husni Mohamad Hanadzlah launched "Labuan IBFC Wealth Management Year 2013". He said Labuan IBFC has grown in the last two years, from 2010 to 2012. The total value of assets for banking and leasing sectors, as well as insurance premiums collected by Labuan IBFC licensed institutions, in aggregate grew to USD76.2 billion or RM236.3 billion. This represents an average annual growth of 13.5%. Moreover, the Asian Development Bank recommended LIBFC Foundation as the holding entity to domicile the USD485 million ASEAN Infrastructure Fund in Labuan last year. For the future, the introduction of a broad range of capital market products needs to be facilitated. Furthermore, a competitive investment management industry has to be established.

Maximize your cash savings

Faced with lean pickings, savers are advised to review their options wisely. One way to make cash generate the best return is exploring the available accounts and the interests paid, including e-saver accounts and certificates of deposits. Moreover, debts should be paid off in order not to spend on high interests. Some banks also offer special savings schemes or award prizes, that can help to increase the wealth. Last but not least, looking overseas for high interest rates can be a good option, but currency risk and conversion charges need to be considered here.

Gassner's picture

Outlook & Review 2012/2013

Dear Reader,

Islamic finance had another great year. Many of its market segments progressed, like for example the Sukuk market gaining more maturity. Despite the ongoing debt crisis a good sign of hope and happiness.

Nevertheless we are - as an industry - still not satisfied with the achievements. Islamic finance shall grow stronger in terms of social impact and in terms of substance:

Hence, please allow me to re-iterate my call for participating in international initiatives beyond just our own industry to learn and spread knowledge and experience:

Calling Islamic financial institutions to become member of the United Nations Finance Initiative

Inshallah we see more Islamic financial institutions taking a lead in SRI, Social Impact Investing and other approaches while contributing with Islamic finance knowdledge to the conventional industry. The time is now; and there are signs that Malaysia aims for a lead:

National Bonds GCC Savings Index highlights evolving savings behavior across the Gulf

According to the 2012 National Bonds GCC Savings Index, Bahrain nationals has experienced the biggest increase of savings sentiment while Qatari nationals savings sentiment has darken. E.g Kuwait interviewees had admitted that their savings are less than they had originally planned at 78%. You can find more statistics here.

Banks 'need to attract GCC wealth'

The next area Islamic finance sets as a goal to develop is wealth management. So far, Muslim high net worth individuals have very limited possibilities in terms of availability of suitable products and services. According to consumer banking global head of Standard Chartered Saadiq, Wasim Saifi, the Gulf region in particular has accumulated a lot of wealth in the conventional space. Provided that customers are offered a Sharia-compliant option that can provide them with a diversity of risk and manage it properly, their wealth would be able to move into the Islamic space.

1 million rich Gulf families own wealth worth $1.2 trillion: Report

According to a recent report by KFH-Research, one million wealthy families in the Gulf region are in possession of investment assets worth about USD 1.2 trillion. The report further informs that the world's population of high net worth individuals (HNWIs) grew by a marginal 0.8% year on year to 11 million in 2011. In comparison to growth rates of 17.1% in 2009 and 8.3% in 2010, last year's growth is considered rather sluggish. There is also a decline in the aggregate financial wealth of these HNWIs as high as 1.7% to USD 42 trillion in 2011. The main reason for this is believed to be the challenging global macroeconomic conditions and volatile global financial markets.

Gassner's picture

Islamic finance title from German translated to Chinese

Dear Reader,

The German language book on Islamic finance by the Editor of IslamicFinance.de and Dr Wackerbeck from Booz Consultants is now translated to Chinese.

Please find the biographical information below:

Authors: Michael Gassner / Philipp Wackerbeck
Title: Islamic Finance – Islam-gerechte Finanzanlagen und
ISBN number: 978-7-5139-0217-5
PUBLISHER: Beijing - Democracy and Construction Press
Pre-Publication Date: 2012.7

Full biographical details: http://db.lib.bua.edu.cn/asord/asorditem.php?asord_marc_no=0001344540

Orders: http://www.amazon.cn/%E4%BC%8A%E6%96%AF%E5%85%B0%E9%87%91%E8%9E%8D-%E7%B...

Book review about the German language original: http://www.rpi-virtuell.net/workspace/24686AD5-936C-476D-9EA0-65E2968590...

Best regards,

Michael Gassner

Islamic finance job openings October 2012

IslamicFinance.de offers an overview about new job openings of October 2012 herewith - firms aiming to be included please send a job profile/hyperlink to newsdesk@islamicfinance.de - the full details of the advert has to be accessed by the hyperlink below the brief description:

Product Manager, Islamic Banking

Standard Chartered Bank - United Arab Emirates-SCB (United Arab Emirates)
Job Description
?Development of Islamic wealth products across CBMS, insurance and investment streams to create customer value proposition.
?Ensure successful implementation of the Islamic banking strategy across high value segment.
?Concentrated responsibility to work with the Priority/Wealth/Private/SME product/frontline teams and support functions to build on the current Islamic banking capabilities and to create seamless customer experience
?Act as a product specialist for RMs on client meetings to introduce and explain the Saadiq solutions to meet their needs
?Financial budgeting and business forecast. Evaluation of financial performance.

Middle East millionaires get wealthier: $1 trillion and counting

The home to most millionaires in the world changes from the US to the Asia-Pacific region. Already the millionaire population in the Middle East is 2.7% higher with 450,000. Wealth rose 0.7%, thus reaching $1.7 trillion. This information given by Capgemini and RBC Wealth Management is an indication of growth of the investable wealth of the region's high net worth individuals independent from the Middle East's vulnerability to protests and demonstrations.

More on: http://www.zawya.com/story/Middle_East_millionaires_get_wealthier_USD1tr...

Arab family-owned businesses redefining roles through effective succession planning and wealth management, finds CTPartners stud

According to CTPartners, a huge number of family-owned businesses, which now have expanded into regional and global conglomerates, are concerned with succession planning to manage and preserve their wealth for future generations. Family-owned businesses should ensure sustainability beyond the founding fathers and their immediate offspring. Since these businesses constitute 75% of the private sector economy, their sustainability is essential for their contries as well.

Gassner's picture

IslamicFinance.de aims to raise USD 2'500 for quarterly running costs

Dear Reader,

IslamicFinance.de is privately funded for many years. Now, for the first time, you have the possibility to make a contribution, from one Dollar upwards!

The technical details, and the money transfer via paypal is organised by Kapipal a new online fundraising tool:


On the blog I gave some more thoughts about Islamic finance media for those interested: http://www.islamicfinance.de/?q=node/3454

Please also note: The fundraising action has a deadline, so act today, not tomorrow and tell your friends about it!

All donors who will leave a message will be listed in the article, which follows after closure of the fundraising period.

I am happy to meet you in person either on 19th March in Milano (http://www.islamicfinance.de/?q=node/3396) or on 10th May in Frankfurt (http://www.islamicfinance.de/?q=BAFINII) at the respective Islamic finance conference.

Wa at Taufiq min Allah, all the best,

Michael Saleh Gassner

Gassner's picture

Islamic finance media - a challenge, and what one could do

Dear Readers,

Islamic finance media are a tricky service. This is true for various reasons: The Internet eats up the revenues, because everything ought to be free. Islamic banks are still a niche phenomena, and international banks like UBS or Deutsche are almost as large as the entire global Islamic finance industry. Consequently the marketing budgets are much lower, too.

Last not least, who should advertise? The banks among themselves or to the clients? Advertising from bank to bank, does usually not make much sense, but real client oriented formats are hard to find, too. May be this is a niche. Others, who could finance Islamic finance media are basically the service providers to the banks, but due to the limited number of Islamic financial insitutions, direct marketing, e.g. face to face meetings will be preferred.

This in short is the background why Islamic finance media are not so well established in terms of journalism and research, but mostly reflecting the press release as criticised by the makers of the Islamic Globe. See: http://www.theislamicglobe.com/index.php?option=com_content&view=article...

Report for free download: Sarasin releases Islamic Wealth Management Report 2012

In its 2012 Islamic Wealth Management Report illustrated by masterpieces of Islamic calligraphy, by the Chinese Muslim master Hajji Noordeen, deals with the theme “The path to corporate transformation – converting a company to Islam”.

Bank Sarasin reviews the complexities of converting a business to Islam, a topic which is rarely discussed or written about. Conversion is complicated by the need to address every aspect of a business, the lack of broadly accepted standards and regulations, and differences in the Muslim world itself. The Report, released today, is the Bank’s third on Islamic Wealth Management.

Converting a business to Islam can increase the value of a company by 18-25% due to the scarcity of genuine Islamic investments. But the conversion process is arduous, extending from the design to distribution and beyond, to how the company spends its profits. As Sarasin notes, the market potential is massive, with the global Muslim population expected to increase by 26% to 2030, to 2.2 billion, rivalling China and India in terms of market size.


Abstract academic paper:

Using a large international sample of 35 developed and emerging markets, we analyze
whether Islamic indices exhibit a different performance to conventional benchmarks. While there is no compelling evidence of performance differences in robust Sharpe ratio tests and after controlling for market risk, we find a significantly positive four-factor alpha for the aggregate developed markets region. This outperformance stems, however, mainly from the U.S. and is largely attributable to the exclusion of financial stocks in Sharia-screened portfolios. As the extensive downturn of financials is related to the recent financial crisis, we do not argue that this outperformance will continue over time. The style analysis reveals that

Islamic indices invest mainly in growth stocks and positive momentum stocks. This, for a passive portfolio intriguing result can, however, be explained by the strong sector allocation towards energy firms and their strong momentum characteristic during the sample period.

Islamic Investor for iPhone

IdealRatings® Islamic Investor™ is the only iPhone application that tells you if a stock is Shariah compliant or not, gives you a detailed report explaining why, and alerts you if it changes status, it is designed for personal use by individual investors.

IdealRatings® is the most trusted provider of accurate, and timely, Islamic Finance information. Most Islamic index providers, and financial institutions in 18 countries rely on IdealRatings to create and manage their Islamic,Shariah compliant, products. Our data is available directly, or on Thomson Reuters and Bloomberg terminals.


-Find out, instantly, if a stock in your local market is Shariah compliant or not.
-Learn why by reading a detailed report.
-Explore Shariah compliant stocks from the Top Stocks and Featured sections.
-Track the compliance of your favorite stocks.
-Receive an alert if a stock changes compliance status.
-Share your findings with your friends and colleagues.

Bank Sarasin urges a stronger focus on Islamic Financial Planning

The key challenges and opportunities addressed in the Islamic Wealth Management Report are:

•Managing the Islamic wealth cycle through the entire process of wealth acquisition, preservation and distribution and achieving the required balance between spiritual and worldly obligations.
•Understanding the primary issues facing Waqf donors despite the strong growth drivers in this market: poor performance is due in part to the shortage of professionals leading to low quality asset management and lack of transparency.
•Considering the suitability of the Swiss private banking family office structure as a wealth management tool to ensure effective Islamic governance.
•Addressing the challenges facing Islamic mutual funds to achieve growth and performance.
•Recommending standardisation, education and diversification of Sukuk in order to increase the supply of products and the liquidity of the market.
•Analysing Islamic equity and indices performance over the last year to illustrate that diversification remains key for investment without compromising Islamic principles.

ADIB Wealth Management Launched

Abu Dhabi Islamic Bank, a top-tier Islamic financial services group, today announced the launch of its Wealth Management service that will cater to the increasingly discerning needs of mass, affluent and high net worth customers. The service will offer an innovative range of investment solutions that are tailor-made to meet the financial needs of their customers through dedicated and certified relationship managers who are supported by a team of investment professionals. ADIB Relationship Managers combine their industry expertise with technical and investment expertise to deliver innovative investment solutions and to support their brand promise of 'Trusted Advice by Trusted Advisor.'

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