Bank Sarasin also called for the industry to move forward by developing the Sharia framework, diversifying products and differentiating its offerings.
Islamic Financial Planning, a religious obligation requested in the Qu’ran, involves the acquisition, preservation and philanthropic distribution of wealth.
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The key challenges and opportunities addressed in the report are:
- 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.
- Understanding the primary issues facing Waqf donors despite the strong growth drivers in this market: poor performance is due in part to the shortage of professionals leading to low quality asset management and lack of transparency.
- Considering the suitability of the Swiss private banking family office structure as a wealth management tool to ensure effective Islamic governance.
- Addressing the challenges facing Islamic mutual funds to achieve growth and performance.
- Recommending standardization, education and diversification of Sukuk in order to increase the supply of products and the liquidity of the market.
- Analyzing Islamic equity and indices performance over the last year to illustrate that diversification remains key for investment without compromising Islamic principles.
Bank Sarasin & Co head of Islamic Finance Fares Mourad said Islamic Financial Planning is largely neglected by the Islamic banking industry. 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," Mourad said.
In November 2009, the Sarasin Group introduced a comprehensive Islamic wealth management service.
