1 / 13

TheCityUK

TheCityUK is an independent, cross-sectoral promotional body that champions the international competitiveness of the UK-based financial and professional services industry. We work closely with government officials and have practitioner-led working groups covering domestic and international promotion, international regulatory strategy, and liberalisation of trade in services.

luann
Download Presentation

TheCityUK

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. TheCityUK • Independent, cross-sectoral, promotional body established to champion the international competiveness of UK-based financial and professional services industry • We work closely with members of Government and Officials including Treasury, Department for Business, Innovation & Skills, FCO, UKTI • Our practitioner led working groups cover: • Domestic Promotion: political engagement on key issues covering policy, tax, regulation, skills and immigration • International Promotion: Specific focus on BRIC, GCC, MENA, Central & South East Asia, South and Sub Saharan African regions • International Regulatory Strategy: A collective approach to shaping the international regulatory landscape (Europe/Brussels, G8 and G20) • Liberalisation of Trade in Services (LOTIS): A collective approach to removing barriers and encouraging more favourable trading environments for global financial services markets by co-ordinating of key political and regulatory decision makers.

  2. The UK Islamic Finance Secretariat (UKIFS) became a part of TheCityUK in May 2011 • UKIFS is the leading cross-sectoral body promoting Islamic finance in the UK • 2000 registered individuals across 450 corporates • International trade bodies and professional institutions • UKIFS brings together Government and industry leaders to through 5 practitioner-led working groups covering: • Islamic Financial Institutions / Wholesale Banking • Domestic / Retail Banking & Wealth Management • Accounting • Legal • Skills • Two new groups in 2011: Insurance and Commercial Real Estate.

  3. Islamic Finance is Growing as a Source of Finance Globally • Sharia compliant assets have exceeded $1trn ($1.041trn as at end 2009) • 10% increase on 2008 values • Islamic finance benefiting from recovery in global economy • Continued steady growth of 10%-15% expected for 2010 • Potential to sustain this rate of growth over coming years.

  4. The Geographical Customer Base is Broadening • The market is currently most developed in Malaysia, Iran and GCC region • Fertile ground for future growth although political upheaval may curtail growth in the Middle East • Developing Islamic finance markets include North Africa, Turkey, Sudan, Egypt, Jordan and Syria • Asian key markets centre on Hong Kong, Singapore, Pakistan, China and India • Western Europe and North America: France, Germany and Russia • London/UK is seeking to consolidate its position as the gateway to Islamic Finance in Western Europe.

  5. The UK is Consolidating its Position as Western Europe’s Premier Centre for Islamic Finance • Islamic Finance receiving greater profile • 22 banks (5 fully sharia compliant); more than any other Western country • 31 Sukuk issues raising $19bn listed on the London Stock Exchange • 34 Islamic Funds managed from the UK • Over 20 law firms supplying services in Islamic finance • Advisory services provided by the Big Four professional service firms • Institutions offering qualifications and training in Islamic finance • Off-exchange trading commodity based agreements linked to LME contracts.

  6. Banking – Continued Market Developments • Islamic banks are seeking to develop as economic growth becomes established • Balance Sheet assets of sharia compliant banks rose 8% from $800bn (2008) to $862bn (2009)* • $744 Commercial Banks • $118 Investment Banks • Revenues recovered in 2010 • Retail banking recognised as key driver for growth in the Middle East • Significant opportunity for Islamic banks in SME and mid-corporate market** • Innovation focus in Private Equity & Wealth Management sectors. * Banker Survey: Top 500 Islamic Financial Institutions, Nov 2010 ** McKinsey & Co: World Islamic Banking Competiveness Report 2010/11

  7. Sukuk – Issuance at Record High • Issuance in the Sukuk market has staged a recovery over last 2 years • 54% increase resulting in a record high of $50bn (2010) • Appetite for quality issuers of Sukuk from both Islamic and non Islamic investors • The UK has a strong interest in the development of the Sukuk market • Represents a key area of focus for UK Islamic Finance Secretariat.

  8. Sukuk Listings – The UKs Strong Experience and Attraction • The London Stock Exchange has proven to be an attractive draw for Sukuk issuance • 5 new listings in 2010 totalling $1.7bn • Total Sukuk listings now 31: $19bn • Elsewhere: • Nasdaq Dubai: 16 listings; $11bn (excludes 3 delistings valued at $5bn) • Luxembourg: 16 listings: $7bn (2009) • The development of corporate and infrastructure Sukuk’s high on UKIFS agenda.

  9. Islamic Funds – Scope for Innovation • Market has eased with only marginal increase in assets to $52.3bn (Q1 2010) • Reflects slowdown in new fund launches: 173 in 2007 to 29 in 2009 • Total number of funds stands at 760 (threefold increase since 2004; c250 funds) • Bulk of Islamic funds are small; • 69% fund managers <$100m AUM • 1/3 <$25m AUM • TheCityUK’s International Private Client & Wealth Management Working Group will be addressing fund innovation within this sector.

  10. Takaful – Early Stage Global Market but Strong Growth Opportunities through Product Innovation • Global market remains at early stage of development • Ernst & Young findings suggest $14bn premiums in 2010 • 80% of global market represented in Malaysia, Iran, Saudi Arabia and UAE • UK poised to take the lead in product innovation • UKIFS forming new Insurance Working Group to address the opportunity by engaging: • Global Insurers • Major broking firms.

  11. Legal, Professional Services and Skills • Law Firms • The UK is a major global provider of specialist legal expertise required for Islamic finance • Professional Services • The Big Four professional services firms each have established Islamic Finance teams in London • Education and Skills • Increasing global demand for Skills • UK at the forefront of providing qualifications for the Industry • UKIFS ETQ Working Group engaging academia, business schools, professional intuitions and trade associations.

  12. For more information on the UK Islamic Finance Secretariat, please contact: • Maxine Staunton: maxine.staunton@thecityuk.com • UKIFS Secretariat • Richard Adler: richard.adler@thecityuk.com • Relationship Director • Keith Phillips: keith.phillips@thecityuk.com • Executive Director, UK Islamic Finance Secretariat

More Related