Global Report on Islamic Finance 2016

A Catalyst for Shared Prosperity?

World Bank, Islamic Development Bank

• Publisher: World Bank Publications
• Year: 2017
• Topic: Business
• eBook ISBN:
  9781464809279
• Subtopic: Finance
• Index: Business

Income inequality has increased considerably in the aftermath of the financial crisis of 2007–08 to the extent that one percent of global population possess almost half of the global assets. Whereas the development community is unanimous to tackle growing inequality and imbalance in the distribution of wealth, there is a difference of opinion as to the approaches to achieve this goal. This report presents a perspective from Islamic finance on how shared prosperity can be enhanced. The theoretical framework for economic development by Islamic economics and finance is based on four fundamental pillars: (i) an institutional framework and public policy oriented to the development objectives of Islam; (ii) prudent governance and accountable leadership; (iii) promotion of the economic and financial system based on risk sharing; and (iv) financial and social inclusion for all, promoting development, growth, and shared prosperity. There is evidence that Islamic finance is experiencing high growth with the banking sector leading the way. Several countries are working seriously towards developing standards, regulation and legal frameworks for the development of Islamic finance. However, there are a number of aspects where policy interventions or improvements in policy effectiveness are needed to develop Islamic finance to promote shared prosperity. Without the enabling environment, Islamic finance may not be able to attain the potential expected of it. With adequate policy interventions and enabling financial infrastructure, Islamic finance could become a catalyst for alleviating poverty and inclusive prosperity.

Table of contents

• Cover
• Title Page
• Copyright Page
• Contents
• Foreword
• Acknowledgments
• Glossary
• Abbreviations
• Overview
• 1 Islamic Finance and Shared Prosperity
• 2 The State of Development and Shared Prosperity in OIC Countries
• 3 The Islamic Banking Sector
• 4 Islamic Capital Markets
• 5 Takāful (Islamic Insurance), Retakāful, and Microtakāful
• 6 Nonbank Financial Institutions
• 7 Alternative Asset Classes
• 8 Islamic Social Finance
• 9 Public Policy Measures to Enhance Shared Prosperity
• Chapter Attributions
• 1.1 The World Bank Group Approach to Enhancing Shared Prosperity
• 3.1 Abu Halima Muḍārabah Greenhouse Project in Sudan
• 4.1 Issuances in IDB’s Medium-Term Note Program
• 5.1 Similarities and Differences between Conventional Mutuals/Cooperatives and Takāful
• 6.1 Case 1. Green Sukūk and the Rising Trend in Responsible Investment
• 8.1 Case 1. Revolving Credit out of Pooled Sadaqāt and Zakāt Proceeds: Akhuwat, Pakistan
• 9.1 Indonesia’s Initiative to Take Islamic Finance to the Next Level of Development
• 1.1 GDP Growth Reduces Poverty
• 2.1 Progress in Meeting Millennium Development Goals 1–5
• B3.2.1 Channels of Financial Inclusion
• 4.1 The Values-Driven Structure of the Islamic Capital Market
• 5.1 Total Amounts of Global Gross Takāful Contributions by Region, 2009–2014f
• 6.1 Global Islamic Asset Management Industry, 2008–14
• 9.1 Distinctive Features of the Mid-Term Review
• O.1 Recommendations and Policy Interventions by Sector
• 1.1 Percentage of Population Living below $1.25 a Day, 1981–2011
• 2.1 Factors to Measure Core Development Components
• 3.1 Islamic Financial Institutions and Financial Inclusion by Country
• 4.1 Measures of Selected Shari‘ah-Compliant Indexes and Benchmark Indexes for Various Holding Periods
• 5.1 Takāful Models
• 6.1 Classification of Nonbank Islamic Finance Institutions
• 7.1 Alkhabeer Financial Highlights
• 8.1 Gap in Resources Needed to Alleviate Poverty
• 9.1 Potential of Various Channels of Islamic Finance to Meet the SDGs and Enhance Shared Prosperity
• Index
• ECO-AUDIT
• Backcover