This compares with global Islamic funds’ assets of $53.9 billion in 2009 and $51.4 billion in 2008.
But this rate of growth may be difficult to repeat this year as global uncertainties including the sovereign debt crisis in Europe and the likelihood of a double-dip recession in the United States weigh on asset managers into 2012, according to Ernst & Young’s latest report on the industry, published annually.
“The global economic scenario, investors’ risk aversion and the aftermath of the Arab Spring are the top three risks for Islamic fund managers,” Ashar Nazim, Middle East and North Africa head of Islamic Finance Services at Ernst & Young, said in a statement.
There are 800 global Islamic funds, making up 5.6 percent of the $1 trillion Islamic finance industry. But 70 percent of funds continue to struggle to reach the estimated break-even mark of $100 million, based on average management fees.
Consolidation in the industry continues, with 23 new Islamic funds launched in 2010, offset by 46 liquidated funds. Twenty-three funds were liquidated in 2009.
“The big will get bigger as the going gets tougher to win investors’ trust,” Nazim said.
Funds continue to struggle with a lack of quality sharia-compliant assets and products to invest in as well as an over-dependence on institutional funds, rather than retail funds that could draw affluent consumers.
Retail funds currently make up only 33 percent of global Islamic funds. But liquid wealth among sharia-sensitive investors in the Gulf is expected to add more than $70 billion to Islamic funds by 2013.
American rockers The Offspring will add to the experience in January 2025
entertainment1 hour ago
The jewellery brand is offering exciting offers to ensure patrons gain maximum benefits on their jewellery purchases
kt network1 hour ago
The allocation by the Sharjah Ruler will be used to stock the library with titles from publishers at the ongoing Sharjah Children’s Reading Festival
uae2 hours ago
While everything about the city may scream opulence, residents aren't just blindly spending their hard-earned money
uae2 hours ago
Work is underway for packages to serve entire region and alignment of large events and e-service is a vital part of it
gulf2 hours ago
Starting from May 6 until July 31, the newly formed committee will accept requests at the ISKAN Abu Dhabi Centre
uae2 hours ago
The 61-year-old's symptoms were concerning, especially considering her highly active lifestyle, said doctors
uae3 hours ago