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TABLE OF CONTENTS
LIST OF FIGURES.................................................................................................................................................... iv LIST OF TABLES .......................................................................................................................................................v ABBREVIATIONS...................................................................................................................................................vii EXECUTIVE SUMMARY ......................................................................................................................................... 1 INTRODUCTION ...................................................................................................................................................... 4 1 GLOBAL OVERVIEW OF THE ISLAMIC FINANCIAL SYSTEM ................................................................. 6 2 EVALUATION OF THE ISLAMIC FINANCIAL INDUSTRY BY SEGMENTS ..........................................12 2.1 INTRODUCTION: THE STATE OF ISLAMIC FINANCE .................................................................... 12 2.2 GEOGRAPHICAL DISTRIBUTION OF ISLAMIC FINANCE .............................................................. 12 2.3 STATE OF ISLAMIC BANKING ............................................................................................................... 13 2.3.1 ISLAMIC BANKING DRIVERS IN KEY MARKETS.................................................................................. 22 2.3.2 FUTURE CHALLENGES TO ISLAMIC BANKING .................................................................................... 24 2.4.1 SUKUK MARKET................................................................................................................................................. 26 2.4.2 ISLAMIC EQUITIES AND FUNDS.................................................................................................................. 33 2.4.3 TAKAFUL (ISLAMIC INSURANCE).............................................................................................................. 34 3 CASE STUDIES IN DIVERSIFICATION OF ISLAMIC FINANCIAL INSTRUMENTS............................40 3.1 CASE STUDY: NIGERIA ............................................................................................................................ 40 3.1.1 SUMMARY ............................................................................................................................................................. 40 3.1.2 INTRODUCTION ................................................................................................................................................. 41 3.1.3 ISLAMIC BANKING IN NIGERIA................................................................................................................... 42 3.1.4 ISLAMIC CAPITAL MARKETS IN NIGERIA .............................................................................................. 46 3.1.5 TAKAFUL (ISLAMIC INSURANCE) IN NIGERIA .................................................................................... 47 3.1.6 POLICY RECOMMENDATIONS ..................................................................................................................... 51 3.2. CASE STUDY: INDONESIA...................................................................................................................... 53 3.2.1 SUMMARY ............................................................................................................................................................. 53 3.2.2. INTRODUCTION ................................................................................................................................................ 54 3.2.3. ISLAMIC BANKING IN INDONESIA............................................................................................................ 55 3.2.4. ISLAMIC CAPITAL MARKETS IN INDONESIA....................................................................................... 57 3.2.5. TAKAFUL (ISLAMIC INSURANCE) IN INDONESIA ............................................................................. 61 3.2.6. BEST PRACTICE AND CHALLENGES ........................................................................................................ 63 3.2.7. POLICY RECOMMENDATIONS .................................................................................................................... 65 3.3. CASE STUDY: PAKISTAN ....................................................................................................................... 68 3.3.1 SUMMARY ............................................................................................................................................................. 68 3.3.2 INTRODUCTION ................................................................................................................................................. 68