The Islamic Private Equity market is set to boom and with Islamic Alternative Investments attracting increasing interest the stage is set for the launch of the 1st Annual Ernst & Young Islamic Funds & Investments Report (IFIR) to address this exciting and dynamic landscape.
Ernst & Young will launch the report at the Pre-Conference Executive Briefing at The World Islamic Funds & Capital Markets Conference on 26th May at the Gulf Hotel in the Kingdom of Bahrain.
The Executive briefing will be led by Sameer Abdi, Group Head – Islamic Financial Services Group & Ali Arsalan Tariq, Senior Consultant, Ernst & Young Bahrain, where the Key Developments & Trends in the Islamic Funds Industry that will Shape the Market will be discussed.
Reflecting these challenges and opportunities, the inaugural Islamic Funds & Investments Report will focus on the spectrum of asset classes and drivers that will have the most significant impact on the industry.
The objective of the IFIR is not to analyse the performance of investment funds, but rather to provide new insights into the market, pinpoint critical success factors and identify key trends that will shape the immediate future of the industry.
Sameer Abdi, Group Head of the Islamic Financial Services Group for Ernst & Young said, “The Islamic funds industry has grown tremendously in size and product depth in the last five years. With ever increasing investor demand to satisfy, there remains immense potential for the future growth of this sector.
The Key Insights that will emerge from the report are:- Macro-economic growth in the region has been robust on the back of strong oil prices and diversification- Regional equity capital markets are slowly on the path to recovery after corrections in 2006- Average fund size has increased to USD 284 million from USD 230 million in 2005- Approximately 50% of the total number of funds have less than USD 50 million of assets under management each- The Islamic wealth management industry needs to develop holistic business models that leverage intricate client relationships and implement efficient operational frameworks- The critical success factors for a new entrant include product development expertise to fill the perceived supply gaps, client relationship management, operational efficiency, competitiveness with established and multinational players, effective marketing and distribution networks, acquisition of high quality human resources- What deal flow can we expect to see emerging in the Islamic Private Equity space?- How sustainable is the current appetite for Islamic Real Estate investments?- Where will the next Sukuk Mega Deals come from?- What are the key institutional shifts in asset allocation, and implications for Funds players?- How can Islamic funds more pro-actively target the “value-seekers”?- How can structural challenges be overcome that will enable Shari’ah-compliant Hedge Funds to grow from current market levels of less than $1 billion to more than $50 billion by 2010?