Islamic Fund Management
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4. CASE STUDIES
4.1 Introduction: Methodology and Selection Criteria
The stage of development of selected countries’ Islamic fund management industries has been
analysed and these countries have accordingly been classified as matured, developing and in
their infancy. To illustrate the factors considered in the analysis, a development-stage matrix
(shown in Table 4.1) has been developed to facilitate the categorisation process; further
details are provided in Table 4.2.
Indicators: High Moderate Low
Table 4.1: Development-Stage Matrix for Islamic Fund Industry
Matured Developing
(Advanced)
Developing
(Intermediate)
Infancy
Malaysia Pakistan South Africa Morocco
Macroeconomic
factors:
- Level of
macroeconomic stability
(ratings of the country
based on various factors
such as geopolitical
tensions, volatility of
local currency, inflation
rate)
A- (S&P)
A3(Moody’s)
A- (Fitch)
A2 (RAM)
B (S&P)
B3(Moody’s)
B (Fitch)
BB (S&P)
Baa3(Moody’s)
BB+ (Fitch)3
BBB- (S&P)
Ba1(Moody’s)
BBB- (Fitch)
- Percentage of Muslim
population to total
population
61.3% 96.4% 1.5%4 99%
- Percentage of Islamic
banking assets to total
banking assets
25.8% 12.4%5 1-2% 3-5%6
- Market share of Islamic
finance assets vs global
Islamic finance assets
18.5% 1.2% 0.41% 0%
Legal framework:
- Common law or civil
law
- Amendments to local
law
- Clarity of dispute
resolution,
bankruptcy act,
arbitration
3 Trading Economics’ website
4 Live World Population Clock’s website
5 Islamic Banking Bulletin, Pakistan, December 2017
6 Expected for 2018, based on Thomson Reuters Report 2014