The October issue of The Banker presents its second Top 500 Islamic financial institutions (TIFI) listing. This 2008 report shows that the Sharia-compliant assets of the Top 500 have grown by 27.6% since November last year to reach $639.1bn, continuing the healthy expansion of Islamic institutions of recent years. The 2007 report showed 29.7% annual growth in SCAs, reaching $500.5bn.
This second listing reflects not only critical growth in assets but also important improvement in the level of disclosure. While disclosure still has a long way to go across all types of Islamic financial institutions, the number of firms reporting Sharia-compliant assets rose by 57 to 280 this year. The key developments in Islamic finance over the past year have been the growth in new institutions, especially Islamic investment banks, in the Gulf and also in London. Institutions such as Noor Islamic Bank in Dubai and Al Hilal Bank in Abu Dhabi, both opening with large capital bases, are providing the new face of Islamic finance. But the influence of this new financial form is spreading well beyond the Middle East and Muslim countries. Not only are there new institutions, such as European Finance House and Gatehouse Bank, setting up in London but HSBC Amanah, the Islamic subsidiary of global giant HSBC, has jumped to 10th place in The Banker's table, from 14th last year, after a significant 56.2% rise in SCAs.
The leading countries remain broadly the same as last year: Kuwait, UAE, Bahrain, Qatar and the UK are the next five in the listing. Iranian banks dominate the leading positions, accounting for 10 out of the leading 25 institutions, which are led again by Bank Melli Iran, with SCAs of $48.5bn. The big mover among the top players in the report is Kuwait Finance House, which increased its SCAs by a huge 70.3% to $37.2bn to move into second position. Saudi Arabia's Al Rajhi Bank moves up into third place with growth of 18.7% to $33.3bn.
This supplement can be found in the journals collection located in the library basement
Alternatively, current London Business School students, faculty, staff and alumni can access the supplement online using Factiva (via the A-Z list of library databases on Portal)
Picture from Creative Commons: Flickr: Sacred Destinations
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