| Home | GCC | World | Industries | Markets | Opinion | Interviews | Photos | Video | Lists | Lifestyle | Topics | Jobs | Property | UOL |
Help, I forgot my username and/or password
HSBC Amanah Securities Services, part of HSBC Holdings, will more than double the value of the Islamic funds it services to exceed $10bn after it helps to set up funds in the next 12 to 18 months.
Demand for Islamic funds has risen in the past three to six months as the global economic slowdown prompted investors to seek alternative investments to help manage risk, according to Germain Birgen, Luxembourg-based global head of HSBC Amanah Securities. The unit will help set up more than 30 Sharia-compliant funds globally.
About $10 trillion was wiped from the value of global equities in the third quarter amid concern a worsening European debt crisis will derail global growth. Sharia law forbids gambling, investments in alcohol and receipt of interest, so fund managers have to select investments deemed halal, or permissible.
“Islamic funds are not exposed to the same level of derivative techniques as conventional funds,” he said in a telephone interview from Luxembourg today. “Conventional institutional managers, targeting institutional investors such as pension funds or insurance companies, are investing in socially responsible investments, which in most markets, Islamic funds fall under that category,” he said.
HSBC Amanah Securities has received a growing number of queries for Islamic funds from clients in countries, such as Australia, South Africa and Brazil, he said. “One project coming from Brazil relates to a private equity fund investing into farming, Brazil being one of the world’s biggest exporter of halal meat,” Birgen said.
Wealth from investors in the Gulf Cooperation Council will add more than $70bn to the so-called addressable Islamic fund universe by 2013, Ernst & Young MENA said last month.
“Increasingly, people are seeing the value in attracting the world’s Muslim wealth with such funds,” Birgen said. “With the current size of the industry, there aren’t enough funds.”
HSBC Amanah Securities services 90 funds in 12 domiciles valued at about $5bn, a tenth of the Sharia-complaint fund industry, Birgen said. Mature fund markets, such as Malaysia and Saudi Arabia, target mainly local investors, he said. The new funds will help attract “large, conventional players” worldwide.
The unit will help establish some of the funds in Luxembourg, Ireland and Singapore, where regulations are more familiar to international investors, he said.
I just got a call from this number +971507896582 stating that I won 500000AED and that i should check the back of my sim card for some numbers and call... more
Friday, 25 May 2012 3:04 PM - hajaGiven that the start of the new month is determined by the moon sighting, isn't this going to make organising meetings for the following month a bit tricky... more
Thursday, 24 May 2012 1:24 PM - Mark RentonI am a UAE national married to an Iranian and her unwavering allegiance is toward Iran and she does not espouse any Arab cause, the same applies with my... more
Friday, 25 May 2012 11:54 PM - YasserTaking religion based decisions in such matters is wrong. It sends wrong signals and sets up bad precedence. What next? Will they stop serving beef in... more
Friday, 25 May 2012 12:15 PM - Skand BhargavaThere are so many promises with no substance out there that even none savvy buyers will think twice before taking risks on Dubai Real estate market. Too... more
Friday, 25 May 2012 9:19 PM - BobI just got a call from this number +971507896582 stating that I won 500000AED and that i should check the back of my sim card for some numbers and call... more
Friday, 25 May 2012 3:04 PM - hajaGiven that the start of the new month is determined by the moon sighting, isn't this going to make organising meetings for the following month a bit tricky... more
Thursday, 24 May 2012 1:24 PM - Mark RentonPalm Jumeirah = Disneyland. Is this the kind of community to invest in for a home ???? or a hotel ? It baffles me why people would invest in an apartment... more
Wednesday, 23 May 2012 4:13 PM - PaulI am a UAE national married to an Iranian and her unwavering allegiance is toward Iran and she does not espouse any Arab cause, the same applies with my... more
Friday, 25 May 2012 11:54 PM - YasserInstead of clinging to anything that reminisces you of your obliterated past, why don't you spend sometime fixing your disgraceful and humiliating present... more
Tuesday, 22 May 2012 9:30 PM - FahdI just got a call from this number +971507896582 stating that I won 500000AED and that i should check the back of my sim card for some numbers and call... more
Friday, 25 May 2012 3:04 PM - hajathe majority of expats (as most people here argue that its a majority painting an entire nation the villain)....why are the filipinos and indians not the... more
Sunday, 20 May 2012 9:17 AM - ArthurHOW CAN WE FORGET 2008, WHY DID YOU NOT FORGET TO PAY ALL YOUR STAFF BONUSES LIKE YOU HAVE DONE ON THE PAST TWO OCCASIONS , YET YOU CANT COMPENSATE OR... more
Wednesday, 16 May 2012 4:51 PM - MOOSAGiven that the start of the new month is determined by the moon sighting, isn't this going to make organising meetings for the following month a bit tricky... more
Thursday, 24 May 2012 1:24 PM - Mark RentonThe words one should read and think about are "it COULD make sense to sell Emirates in the future". Sir Flanagan does not say it does make sense at this... more
Thursday, 10 May 2012 11:16 AM - Paul dxb
Join the Discussion
Disclaimer:The view expressed here by our readers are not necessarily shared by Arabian Business, its employees, sponsors or its advertisers.
Please post responsibly. Commenter Rules