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Sharia’, Finance and Strategy
Abdel-Maoula Chaar
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Strategic Management for IFIs
Porter five forces AM Chaar – Introduction – 5th Islamic banks and financial institutions conference – Damascus 2010.
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Strategic Management for IFIs
Porter five forces AM Chaar – Introduction – 5th Islamic banks and financial institutions conference – Damascus 2010.
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Strategic Management for IFIs
Rivalry Among firms AM Chaar – Introduction – 5th Islamic banks and financial institutions conference – Damascus 2010.
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Strategic Management for IFIs
Porter five forces Rivalry among firms AM Chaar– Introduction – 5th Islamic banks and financial institutions conference – Damascus 2010.
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The distribution of IFIs
Islamic finance facts The distribution of IFIs AM Chaar – Introduction – 5th Islamic banks and financial institutions conference – Damascus 2010.
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Islamic markets characteristics
Islamic finance facts Islamic markets characteristics 951 billions Sharia compliant assets 799 billions banking assets 152 billions under management 1 trillion target expected in 2010 20-30% annual growth rate AM Chaar – Introduction – 5th Islamic banks and financial institutions conference – Damascus 2010.
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The distribution of Islamic assets
Islamic finance facts The distribution of Islamic assets AM Chaar – Introduction – 5th Islamic banks and financial institutions conference – Damascus 2010.
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Islamic markets characteristics
Islamic finance facts Islamic markets characteristics 951 billions Sharia compliant assets 799 billions banking assets 152 billions under management 1 trillion target expected in 2010 20-30% annual growth rate AM Chaar – Introduction – 5th Islamic banks and financial institutions conference – Damascus 2010.
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Islamic markets characteristics
Islamic finance facts Islamic markets characteristics 951 billions Sharia compliant assets 799 billions banking assets 152 billions under management 1 trillion target expected in 2010 20-30% annual growth rate AM Chaar – Introduction – 5th Islamic banks and financial institutions conference – Damascus 2010.
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Growth of Islamic banking assets
Islamic finance facts Growth of Islamic banking assets AM Chaar – Introduction – 5th Islamic banks and financial institutions conference – Damascus 2010.
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Strategic Management for IFIs
Porter five forces AM Chaar – Introduction – 5th Islamic banks and financial institutions conference – Damascus 2010.
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Islamic markets characteristics
Islamic finance facts Islamic markets characteristics HNWI and UHNWI on the rise AM Chaar – Introduction – 5th Islamic banks and financial institutions conference – Damascus 2010.
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Islamic finance facts Islamic markets characteristics
HNWI expected annual growth ( ) AM Chaar – Introduction – 5th Islamic banks and financial institutions conference – Damascus 2010.
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Islamic markets characteristics
Islamic finance facts Islamic markets characteristics HNWI and UHNWI on the rise Affluent Segment: Young, active, optimistic Financial markets and financial services underdeveloped AM Chaar – Introduction – 5th Islamic banks and financial institutions conference – Damascus 2010.
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Conventional banks’ Islamic vehicles
Islamic finance facts Conventional banks’ Islamic vehicles 2003 4 2004 5 1998 2 2002 3 1996 1 1 9 5 2 1. Citi-Islamic - 2. HSBC Amanah - 3. Noriba (UBS) 4. BNP Paribas Najmah - 5. Calyon Islamic Window AM Chaar – Introduction – 5th Islamic banks and financial institutions conference – Damascus 2010.
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Conventional banks’ Islamic vehicles
Islamic finance facts Conventional banks’ Islamic vehicles Window Models Used by banks to carry out altogether Islamic and conventional financial operations Branches Dedicated delivery channels for Islamic finance products Subsidiaries Separate legal entities used to offer Islamic finance products
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Strategic Management for IFIs
The dynamic of Islamic and western financial fields AM Chaar – Introduction – 5th Islamic banks and financial institutions conference – Damascus 2010.
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Strategic Management for IFIs
The dynamic of Islamic and western financial fields AM Chaar – Introduction – 5th Islamic banks and financial institutions conference – Damascus 2010.
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Strategic Management for IFIs
Porter five forces AM Chaar – Introduction – 5th Islamic banks and financial institutions conference – Damascus 2010.
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Strategic Management for IFIs Difference in Islamic sensitivity
Only Islamic – 20% Sacrifice returns/service for full Sharia’ compliance Looks for pure Islamic players Islamic if equal performance – 40% Will not sacrifice returns/service for Sharia’ compliance Sharia’ compliance is a bonus Value-Seekers – 30% Looks for the best performance regardless the bank identity Only conventional – 10% Ernst & Young (2008). The Islamic funds and investments report.
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Strategic Management for IFIs
The dynamic of Islamic and western financial fields AM Chaar – Introduction – 5th Islamic banks and financial institutions conference – Damascus 2010.
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The Islamic Finance Paradigm The specificities of the Sharia’
Quran Sunna S o u r c e s TAWHID (Quran / Sunna) STEWARDSHIP (Sharia) Sharia Fiqh al Mouamalat Ijtihad I n t e r p a i o MASLAHA (Fiqh et Ijtihad) Operations (Techniques) Organization (Sharia Boards) Mindset Applications
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The Islamic Finance Paradigm
The Paradigm
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The Islamic Finance Paradigm The specificities of the Sharia’
Letter of the Sharia’ Spirit of the Sharia’
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The Islamic Finance Paradigm The specificities of the Sharia’
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Strategic Management for IFIs
The dynamic of Islamic and western financial fields AM Chaar – Introduction – 5th Islamic banks and financial institutions conference – Damascus 2010.
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Strategic Management for IFIs
Porter five forces AM Chaar – Introduction – 5th Islamic banks and financial institutions conference – Damascus 2010.
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Strategic Management for IFIs
The dynamic of Islamic and western financial fields AM Chaar – Introduction – 5th Islamic banks and financial institutions conference – Damascus 2010.
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Strategic Management for IFIs
Porter five forces AM Chaar – Introduction – 5th Islamic banks and financial institutions conference – Damascus 2010.
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Strategic Management for IFIs Education in Islamic Finance
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Strategic Management for IFIs Education in Islamic Finance
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Thank you Abdel-Maoula Chaar
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