Abdel-Maoula Chaar

1. Sharia’, Finance and Strategy Abdel-Maoula Chaar

2. Strategic Management for IFIs Porter five forces AM Chaar – Introduction – 5th Islamic banks and financial institutions conference – Damascus 2010.

3. Strategic Management for IFIs Porter five forces AM Chaar – Introduction – 5th Islamic banks and financial institutions conference – Damascus 2010.

4. Strategic Management for IFIs Rivalry Among firms AM Chaar – Introduction – 5th Islamic banks and financial institutions conference – Damascus 2010.

5. Strategic Management for IFIs Rivalry among firms Porter five forces AM Chaar– Introduction – 5th Islamic banks and financial institutions conference – Damascus 2010.

6. Islamic finance facts The distribution of IFIs AM Chaar – Introduction – 5th Islamic banks and financial institutions conference – Damascus 2010.

7. Islamic finance facts Islamic markets characteristics • 951 billions Sharia compliant assets • 799 billions banking assets • 152 billions under management • 1 trillion target expected in 2010 • 20-30% annual growth rate AM Chaar – Introduction – 5th Islamic banks and financial institutions conference – Damascus 2010.

8. Islamic finance facts The distribution of Islamic assets AM Chaar – Introduction – 5th Islamic banks and financial institutions conference – Damascus 2010.

9. Islamic finance facts Islamic markets characteristics • 951 billions Sharia compliant assets • 799 billions banking assets • 152 billions under management • 1 trillion target expected in 2010 • 20-30% annual growth rate AM Chaar – Introduction – 5th Islamic banks and financial institutions conference – Damascus 2010.

10. Islamic finance facts Islamic markets characteristics • 951 billions Sharia compliant assets • 799 billions banking assets • 152 billions under management • 1 trillion target expected in 2010 • 20-30% annual growth rate AM Chaar – Introduction – 5th Islamic banks and financial institutions conference – Damascus 2010.

11. Islamic finance facts Growth of Islamic banking assets AM Chaar – Introduction – 5th Islamic banks and financial institutions conference – Damascus 2010.

12. Strategic Management for IFIs Porter five forces AM Chaar – Introduction – 5th Islamic banks and financial institutions conference – Damascus 2010.

13. Islamic finance facts Islamic markets characteristics • HNWI and UHNWI on the rise AM Chaar – Introduction – 5th Islamic banks and financial institutions conference – Damascus 2010.

14. Islamic finance facts Islamic markets characteristics HNWI expected annual growth (2006-2011) AM Chaar – Introduction – 5th Islamic banks and financial institutions conference – Damascus 2010.

15. Islamic finance facts Islamic markets characteristics • HNWI and UHNWI on the rise • Affluent Segment: • Young, active, optimistic • Financial markets and financial services underdeveloped AM Chaar – Introduction – 5th Islamic banks and financial institutions conference – Damascus 2010.

16. 2003 4 2004 2002 1998 1996 5 3 1 2 0 5 5 0 0 9 0 0 9 2 2 1 Islamic finance facts Conventional banks’ Islamic vehicles 1. Citi-Islamic - 2. HSBC Amanah - 3. Noriba (UBS) 4. BNP Paribas Najmah - 5. Calyon Islamic Window AM Chaar – Introduction – 5th Islamic banks and financial institutions conference – Damascus 2010.

17. Islamic finance facts Conventional banks’ Islamic vehicles • Window Models • Used by banks to carry out altogether Islamic and conventional financial operations • Branches • Dedicated delivery channels for Islamic finance products • Subsidiaries • Separate legal entities used to offer Islamic finance products

18. Strategic Management for IFIs The dynamic of Islamic and western financial fields AM Chaar – Introduction – 5th Islamic banks and financial institutions conference – Damascus 2010.

19. Strategic Management for IFIs The dynamic of Islamic and western financial fields AM Chaar – Introduction – 5th Islamic banks and financial institutions conference – Damascus 2010.

20. Strategic Management for IFIs Porter five forces AM Chaar – Introduction – 5th Islamic banks and financial institutions conference – Damascus 2010.

21. Strategic Management for IFIs Difference in Islamic sensitivity • Only Islamic – 20% • Sacrifice returns/service for full Sharia’ compliance • Looks for pure Islamic players • Islamic if equal performance – 40% • Will not sacrifice returns/service for Sharia’ compliance • Sharia’ compliance is a bonus • Value-Seekers – 30% • Looks for the best performance regardless the bank identity • Only conventional – 10% Ernst & Young (2008). The Islamic funds and investments report.

22. Strategic Management for IFIs The dynamic of Islamic and western financial fields AM Chaar – Introduction – 5th Islamic banks and financial institutions conference – Damascus 2010.

23. TAWHID Quran s e (Quran / Sunna) Sunna c r u o S STEWARDSHIP Sharia (Sharia) n o i Fiqh al t MASLAHA a t Mouamalat e (Fiqh et Ijtihad) r p r Ijtihad e t n I Operations Organization Mindset (Techniques) (Sharia Boards) The Islamic Finance Paradigm The specificities of the Sharia’ Applications

24. The Islamic Finance Paradigm The Paradigm

25. The Islamic Finance Paradigm The specificities of the Sharia’ Letter of the Sharia’ Spirit of the Sharia’

26. The Islamic Finance Paradigm The specificities of the Sharia’

27. Strategic Management for IFIs The dynamic of Islamic and western financial fields AM Chaar – Introduction – 5th Islamic banks and financial institutions conference – Damascus 2010.

28. Strategic Management for IFIs Porter five forces AM Chaar – Introduction – 5th Islamic banks and financial institutions conference – Damascus 2010.

29. Strategic Management for IFIs The dynamic of Islamic and western financial fields AM Chaar – Introduction – 5th Islamic banks and financial institutions conference – Damascus 2010.

30. Strategic Management for IFIs Porter five forces AM Chaar – Introduction – 5th Islamic banks and financial institutions conference – Damascus 2010.

31. Strategic Management for IFIs Education in Islamic Finance

32. Strategic Management for IFIs Education in Islamic Finance

33. Thank you Abdel-Maoula Chaar