Islamic Fund Management

Analyse the historical development, theoretical nature, legal and regulatory aspects of

Islamic funds, along with the debates on and interpretation of various schools and

jurisdictions. We also discuss the differences and similarities between Islamic fund

management and its conventional counterpart.

Examine the structures and working mechanisms of various types of Islamic funds as

well as the specific issues and challenges encountered in the further development of this

sector.

Undertake country-specific case studies to present the current status of the Islamic fund

management industry in various countries, alongside the issues faced by each

jurisdiction and the best practices to be adopted to enhance the development prospects

of Islamic fund management.

This study provides policy recommendations to promote Islamic finance in the sub-sector of

establishing, structuring, managing and implementing Islamic funds at both the global and

national levels. It is prepared for the relevant policy makers of OIC member countries to

provide guidelines on the

building of a cohesive roadmap for Islamic fund development. The

study

can also be beneficial to other audiences such as non-OIC member countries,

international organisations and the overall international finance community. Its coverage

includes mostly OIC member countries; where specifically stated, some non-OIC member

countries have also been examined.

1.2

Methodology

The study employs the following research methodologies:

Literature Review

: It involves a review of secondary sources of literature, both written

and visual, and investigation of information, documents, publications and the experience

of the relevant countries (OIC member nations as well as countries from the rest of the

world), and national and international institutions. Specifically, the policies and

practices on fund management, both national and global, have been reviewed by

accessing specific countries’ reports and analyses, industry and economic reports, and

other research publications.

Desk-Based Research

: This comprises accessing primary data on the type of funds,

size, market share, asset class, investor type, domicile, and other information from data

providers such as Bloomberg and Eikon-Thomson Reuters, besides national regulators

such as securities commissions and central banks. Data published by international

institutions such as the World Bank, the Islamic Development Bank (IDB), the Islamic

Financial Services Board (IFSB) and others have been referred too.

Field-Visit Case Studies

: This comprises the analysis of OIC and non-OIC member

countries, as case studies, based on field visits. The cases specifically focus on analysing

national and international institutions in their capacity to promote Islamic fund

management. The field visits mainly involve the compilation of data and information

that are otherwise not accessible, and the appraisal of issues regarding Islamic fund

management policies and practices such as administrative and political challenges,

perception and awareness, market dynamics and other aspects. The method adopted

comprises face-to-face interviews and discussions with key informants (e.g. regulators,

policy makers, fund managers, investors, consultancy firms and others).