6.3.1 Legal ............................................................................................................................................................................................................125 6.3.2 Accounting and Auditing...................................................................................................................................................................126 6.3.3 Rating Agencies......................................................................................................................................................................................127 6.3.4 Talent Development ............................................................................................................................................................................127 6.4 INTERNATIONALIZATION OF ISLAMIC FINANCE .................................................................................................127 6.5 GOVERNANCE AND CONTROL OF ISLAMIC FINANCE ..........................................................................................128 6.6 CAPITAL MOBILIZATION AMONG MUSLIM COUNTRIES ....................................................................................129 6.7 FINANCIAL INCLUSION AND ISLAMIC MICROFINANCE AMONG MUSLIM COUNTRIES............................129 6.8. RECOMMENDATIONS AND RISK MANAGEMENT IMPLEMENTATION..........................................................131 6.8.1 Recommendations from the Risk Management Survey .....................................................................................................131 6.8.2. IFSB Risk Management Implementation ..................................................................................................................................133 6.9. RECOMMENDATION, PERFORMANCE INDICATOR AND FUTURE INITIATIVES FOR THE DEVELOPENT AND RISK MANAGEMENT IN THE ISLAMIC FINANCIAL SERVICES INDUSTRY ..................................................134 6.9.1. Key Performance Indicators for Measuring Progress ........................................................................................................137 6.9.2 Key Initiatives for Implementation of the Goals ....................................................................................................................140 6.9.3 Support the Growth and Stability of the Islamic Finance Industry ..............................................................................140 6.9.4 Encourage Efficiency and Innovation in the Islamic Finance Industry ......................................................................141 6.9.5. Promote the International Growth of the Islamic Finance Industry...........................................................................142 6.9.6 Promote the Integration of Islamic Finance Across Borders...........................................................................................143 6.9.7 Enhance the Role of Islamic Finance in Promoting Economic Growth.......................................................................144 REFERENCES..............................................................................................................................................................................146 APPENDIX A: CASE STUDIES OF ISLAMIC FINANCIAL INSTRUMENTS .................................................................161 A.1. PERFORMANCE OF ISLAMIC MUTUAL FUNDS VERSUS CONVENTIONAL MUTUAL FUNDS ......................... ......................................................................................................................................................................................161 A.1.1 Present Status of Islamic Mutual Funds ....................................................................................................................................161 A.1.2 Emergence of Islamic Indexes ........................................................................................................................................................161 A.1.3 Findings from the Recent Literature...........................................................................................................................................162 A.1.3.1 Comparison Between Performance of Islamic and Conventional Mutual Fund.................................................162 A.1.3.2 Riskiness Of Islamic Portfolio And Conventional Portfolio ..........................................................................................162 A.1.3.3 Comparison of Performances Between Islamic Indexes and Conventional Indexes .......................................163 A.1.3.4 Investment Styles and Fund Performance............................................................................................................................163 A.2. SUKUK FAILURE AND LESSONS LEARNED .............................................................................................................164 A.2.1 The Concept of Sukuk .........................................................................................................................................................................164 A.2.2 Trends in Sukuk Industry .................................................................................................................................................................164