islamic capital markets 2
TRANSCRIPT
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Islamic Capital Markets
Salman Syed Ali
Distance Learning Course No. 8
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OUTLINE
1. Purpose of CMs and ICMs Salient Features
Nature of IF2. Present State of ICMs
3. Current Issues
4. Performance During Crisis
5. Future of ICMs
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1. Purpose
What is the purpose of CapitalMarkets and Islamic Capital Mkts?
Are capital mkts complement orsubstitute to banking sector?
Why some countries have strongcapital mkts than banks?
Factors responsible for growth of
capital mkts?
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Purpose of CMs and ICMs
Salient Features
Nature of IF
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What do Cap Mkts do
Conventional Islamic
Price setting
Asset Valuation
Erase arbitrage
Raising of capital
Facilitate commercial
transactions
Financial investing
Risk management
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2. Present State of ICMs
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Size of Capital MarketsHow to measure?
By:
New capital raised
Total value (market capitalization) Cross border transactions
Type of instruments
Accuracy of price setting
Stability afforded (risk)
Number of listings
Number of transactions
Value of transactions Number of participants
All of the above in absolute levels as well as
in relative terms.
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Present State (contd)
Funds
Equity
Sukuk
Range and Mix of P roducts
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Number of New Funds
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Funds by Type and Size
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Sukuk Issuance by Year
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Corporate Sukuk: by Type andCumulative Issuance (2000-2007)
Corporate Sukuk by Type and Cumulative Issuance from 2000 to 2007
0
5000
10000
15000
20000
25000
30000
USD
Millions
USD millions 19025.35 19891.66 4080.29 504.5 5018.79 25269.84 9932.93
Shariah Non-Compliant
BBA, Inah, or
UnspecifiedSukuk
Istisna TotalIstisna andIjarah total
Ijarah TotalMusharakah
TotalAll Others
Fixed Return
Tradable
Variable Return
Non-Tradable
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3. Issues in ICMs
Related to Products
Related to Regulation
Related to Microstructrue
Related to Infrastructure
4 P f D i Gl b l
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4. Performance During GlobalFinancial Crisis
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Total Sukuk Issued (USD millions)
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Total Sukuk Issued (USD millions)Comparison of First-Half Years 2006, 2007, 2008
[A possible impact of sub-prime crisis]
Source: Beard, Charles. Sukuk in H1-2008 Key Trends and Market Highlights, Sukuk Research, IFIS.
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5. Future of ICMs
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Thank You