Financial planning 'key to Islamic banking growth'
Manama, April 20, 2011
The Islamic banking community needs to focus on financial planning, according a report launched by Bank Sarasin in Bahrain.
It also calls for the industry to move forward by developing the Sharia framework, diversifying products and differentiating its offerings.
Bank Sarasin's Islamic Wealth Report 2011 provides investors with an in-depth overview of developments in the Islamic wealth arena in 2010 and explains how best to manage assets according to religious requirements.
'This approach exemplifies Bank Sarasin's aim to minimise risk and maximise opportunities for its clients, a key objective in today's volatile markets,' a spokesman for the bank said.
'This year's report opens by explaining the required approach to Islamic financial planning before focusing on the key areas of philanthropy, the family office service, mutual funds and sukuk, before concluding with an insight into Bank Sarasin's current economic outlook for 2011.
'Islamic financial planning is largely neglected by the Islamic banking industry,' said head of Islamic finance Fares Mourad.
'It requires a detailed process, as well as structures and products to ensure Muslim investors are fully compliant with Sharia law.
'We are proud to have extended our holistic approach to offer a comprehensive Islamic wealth management service,' he said.
The key challenges and opportunities addressed in the report include managing the Islamic wealth cycle through the entire process of wealth acquisition, preservation and distribution and achieving the required balance between spiritual and worldly obligations.
It also addresses the challenges facing Islamic mutual funds to achieve growth and performance and recommends standardisation, education and diversification of sukuk in order to increase the supply of products and the liquidity of the market.-TradeArabia News Service