Islamic Fund Management
62
Figure 3.13: Geographical Distribution of Islamic AuM against Muslim Population
Source: RAM
Note: Figures sourced from ICD-Thomson Reuters Report (2017)
3.3 Key Factors Underpinning the Development of Islamic Fund
Management
As described earlier under item 3.1, the five core pillars set the basic critical success factors
required for the development of an Islamic fund management industry. Other important
factors are listed below while the findings are summarised i
Table 3.8: Stage of Country’s Islamic Funds Development and Macroeconomic Factors
Country
and Credit
Ratings
Stage of
Market
Development
% of Shariah-
Compliant
Stocks Against
Total Market
Macroeconomic Brief
Malaysia
A- (S&P),
A3
(Moody’s),
A- (Fitch),
A2 (RAM)
Matured  Shariah-
compliant
stocks
represent
76.2% (688
stocks vs 903
listed stocks)
According to RAM, Malaysia’s credit ratings reflect the
country’s resilient economic growth, the government’s
fiscal consolidation efforts and stable GDP growth (i.e.
estimated at 5.8% in 2017). These positive conditions
have significantly supported the growth of the country’s
capital markets. The Malaysian capital markets expanded
12.6% to RM3.2 trillion as at end-2017, making it the fifth
largest in Asia.
Pakistan
B (S&P),
B3
(Moody’s),
B (Fitch)
Developing
(Advanced)
 Shariah-
compliant
stocks
represent
44.7% (250
stocks vs 559
total stocks)
According to S&P, Pakistan’s GDP is expected to grow at
an average rate of 5.7% in 2017-2020. This stronger
growth projection reflects the large-scale investments
under CPEC in the energy and infrastructure sectors of
the economy. Nonetheless, the rating remains
constrained by a narrow tax base and domestic as well as
external security risks.
South
Africa
Developing
(Intermediate)
 Shariah-
compliant
According to Moody’s, the earlier weakening of South
Africa’s institutional framework will gradually reverse