Islamic Financial Institutions Awards 2008

By Platt, Gordon | Global Finance, June 2008 | Go to article overview

Islamic Financial Institutions Awards 2008

Platt, Gordon, Global Finance

Global Finance selects the winners in a fast-growing area of finance that combines investing according to the tenets of Islamic law with modern financial products and systems.

Islamic finance is a system of ethical investing that is becoming increasingly popular around the world in the wake of the US subprime mortgage crisis. Using the ancient guiding principles of Islamic law, of which the prohibition of interest is just one, shariah scholars oversee the entire process. The types of products offered by Islamic financial institutions are catching on, not only with Muslims but also with a broad range of customers and investors who see them as a fairer and safer way of doing business than is available in the conventional banking system.

The market for Islamic bonds, or sukuk, is growing at a rate of about 35% a year and will reach the $200 billion milestone by 2010, according to Moody's Investors Service. The New Yorkbased global ratings agency says Islamic finance is estimated to be worth about $700 billion globally, of which sukuk are the fastest growing segment of the market. Meanwhile, the profitable retail segment is expected to grow for demographic reasons alone.

In recognition of the fast growth of Islamic financing, Global Finance is introducing its first annual World's Best Islamic Financial Institutions Awards. After extensive consultations with bankers, corporate finance executives and analysts throughout the world, the editors of Global Finance selected the best institutions in 28 countries and regions, as well as in six overall categories. In choosing the winners, we considered factors that range from the quantitative objective to the informed subjective. Amid nominally objective criteria were growth in assets, profitability, geographic reach, strategic relationships, new business development and innovation in products. Subjective criteria included opinions of analysts, banking consultants and others involved in the industry.

Financial centers around the world are competing with those in the Middle East and Southeast Asia for a piece of this growing pie. While the Islamic financing industry remains largely intermediated by financial institutions, there are signs that the capital markets are getting ready to play a bigger role.



Kuwait Finance House

Kuwait Finance House, the leading Islamic financial lender in Kuwait, as well as the country's biggest bank by market value, formed a separately capitalized subsidiary this year to trade sukuk, the fastest-growing Islamic financial instrument. Sukuk are backed by real assets with low risks and appeal to a growing range of issuers and investors. With more than 30 years' experience in Islamic finance, KFH is promoting the globalization of the sukuk market. It arranges syndicated sukuk with international banks on behalf of companies and governments. Last year KFH was co-arranger and co-manager of a $1 billion sukuk for Dar Al-Arkan Real Estate Development, based in Saudi Arabia. Previously, KFH was co-manager of a $750 million global sukuk issue for the government of Qatar and counderwriter of a $400 million sukuk for the Islamic Development Bank. KFH is doing business in Southeast Asia through its KPH-Malaysia subsidiary. It also plans to expand in Africa and the Middle East. It already has subsidiaries in Turkey and Bahrain and has applied for a license to set up a Saudi bank with capital of $134 million.

* Mohammed Sulaiman Al-Omar, general manager


Dubai Islamic Bank

Dubai Islamic Bank (DIB) was formed in 1975 as the world's first full-fledged Islamic bank and now has 48 branches in the United Arab Emirates. The bank's first-quarter 2008 earnings rose 32% from the same period a year earlier to $151 million, thanks in part to a continuing boom in Dubai's real estate sector. DIB, a Dubai-government affiliate, offers a range of credit and debit cards, as well as profit-sharing savings accounts that consistently deliver higher returns than conventional savings accounts. …

The rest of this article is only available to active members of Questia

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items

Items saved from this article

This article has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this article

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Cite this article

Cited article

Citations are available only to our active members.
Buy instant access to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25,

Note: primary sources have slightly different requirements for citation. Please see these guidelines for more information.

Cited article

Islamic Financial Institutions Awards 2008


Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Full screen

matching results for page

    Questia reader help

    How to highlight and cite specific passages

    1. Click or tap the first word you want to select.
    2. Click or tap the last word you want to select, and you’ll see everything in between get selected.
    3. You’ll then get a menu of options like creating a highlight or a citation from that passage of text.

    OK, got it!

    Cited passage

    Citations are available only to our active members.
    Buy instant access to cite pages or passages in MLA, APA and Chicago citation styles.

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

    1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25,

    New feature

    It is estimated that 1 in 10 people have dyslexia, and in an effort to make Questia easier to use for those people, we have added a new choice of font to the Reader. That font is called OpenDyslexic, and has been designed to help with some of the symptoms of dyslexia. For more information on this font, please visit

    To use OpenDyslexic, choose it from the Typeface list in Font settings.

    OK, got it!

    Cited passage

    Thanks for trying Questia!

    Please continue trying out our research tools, but please note, full functionality is available only to our active members.

    Your work will be lost once you leave this Web page.

    Buy instant access to save your work.

    Already a member? Log in now.

    Author Advanced search


    An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.