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Investment opportunities in the Digital Islamic Economy Convergence with the Islamic Economy October 22, 2015
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Investment opportunities in the Digital Islamic Economy
Convergence with the Islamic EconomyOctober 22, 2015
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AgendaISLAMIC FINANCE CONFERENCE 2015
© DinarStandard 2005-2015
• Global Islamic Economy context• Malaysia Islamic Economy context• Convergence opportunities
Confidential
3© DinarStandard 2005-2015 Confidential
ISLAMIC FINANCE CONFERENCE 2015Muslims in 2014 spent $1.8 trillion across food and lifestyle sectors
Aggregate Muslim spend to reach $2.6
trillion by 2020
Muslim spend on food to reach $1.6
trillion by 2020
$2.6 trillion in Islamic
commercial banking assets
by 2020
4
AgendaISLAMIC FINANCE CONFERENCE 2015
© DinarStandard 2005-2015
• Global Islamic Economy context• Malaysia Islamic Economy context• Convergence opportunities
Confidential
5© DinarStandard 2005-2015 Confidential
ISLAMIC FINANCE CONFERENCE 2015Malaysia is the third largest market for Islamic commercial banking
Iran and Saudi Arabia are two largest markets
Malaysia accounts for
~13% of global assets
$1.3 trillion in global
commercial banking assets
6© DinarStandard 2005-2015 Confidential
ISLAMIC FINANCE CONFERENCE 2015Muslims in Malaysia spent $35b in 2014 on halal food and lifestyle products and services
Muslim spend on food and lifestyle to
reach $62b by 2020
Each sector growing 8%+ p.a. to 2020
$35b growing 10% p.a. to $62b by 2020
Series1 -
5.00
10.00
15.00
20.00
25.00
30.00
35.00
Malaysia Islamic Economy markets - 2014-20$ in billions
$17b,10% p.a.
$6b,8% p.a. $4b,
11% p.a. $4b,11% p.a. $3b,
10% p.a. $2b,13% p.a.
7© DinarStandard 2005-2015 Confidential
ISLAMIC FINANCE CONFERENCE 2015Malaysia is a leading example for developing the Islamic Economy (1 of 2)
Malaysia has the best
developed Islamic
Economy ecosystem
For three of the six pillars, Malaysia tops the Indicator
rankings
8© DinarStandard 2005-2015 Confidential
ISLAMIC FINANCE CONFERENCE 2015Malaysia is a leading example for developing the Islamic Economy (2 of 2)
Malaysia has a world-leading,
diversified Islamic banking
system
Leading Muslim-
friendly travel and halal food
ecosystems
WORLD-LEADING GOVERNANCE
WELL-DEVELOPED FINANCIAL INFRASTRUCTURESTRONG AWARENESS
MUSLIM FRIENDLY
WORLD-LEADING GOVERNANCE
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AgendaISLAMIC FINANCE CONFERENCE 2015
© DinarStandard 2005-2015
• Global Islamic Economy context• Malaysia Islamic Economy context• Convergence opportunities with Islamic Finance
Confidential
10© DinarStandard 2005-2015 Confidential
Islamic Finance Conference 2016Greater convergence needed between Islamic Finance and the Islamic Economy
$1.8 trillion $1.3 trillion $41b
Islamic finance market assets Islamic commercial banking
assets
$295b
Islamic private equity (2013)
Sukuks (bonds)Islamic private
equity is a very nascent industry
Emerging Islamic
Economy companies
need sharia-compliant funding to
scale
Risk aversion and asset allocation bias toward physical asset-based/ real estate investments
ISLAMIC FINANCE CONFERENCE 2015
Young, emerging industries; young companies
Highly fragmented, with no leading global brands
11© DinarStandard 2005-2015 Confidential
Islamic Finance Conference 2016However, notable recent success stories
However, there is significant room for Islamic Economy investments, to create leading global Islamic food and lifestyle products/ services brands
Acquisition by $400mSeed investment by $2.5m
Notable investments across pillars
However, very early stages of development
Investment by
ISLAMIC FINANCE CONFERENCE 2015
Investment by
In
12© DinarStandard 2005-2015 Confidential
Islamic Finance Conference 2016
Concluding Question:
Where next for Islamic Finance?
ConclusionISLAMIC FINANCE CONFERENCE 2015
