oil dive drags shariacompliant funds down
Saturday 15 February 2025
Last Updated : GMT 05:17:37
Emiratesvoice, emirates voice

Oil dive drags sharia-compliant funds down

Emiratesvoice, emirates voice

Emiratesvoice, emirates voice Oil dive drags sharia-compliant funds down

Oil dive drags sharia-compliant funds down
London - MENA

The fall in the oil price has claimed another victim. Sharia-compliant funds have suffered their worst sales in four years as the price of oil plummets and tensions in the Middle East spook investors.

Sales of the products, which avoid companies that make money from the sale of alcohol, pork and pornography, as well as meeting other principles of Islamic finance, fell more than 75 per cent last year compared with 2014, The Financial Times reported on Sunday.

The slowdown is a big setback for the fledgling $60bn Islamic fund industry, which only began finding its feet in recent years, and raises questions about the products’ prospects.

“The money is not flowing into Islamic fund managers,” says Mustafa Adil, head of Islamic finance at Thomson Reuters, the data provider. “People are not as bullish as they were in previous years. And that will have an impact on growth.”

As recently as 2013, the Islamic fund industry was growing at a rate of 10 per cent a year.

However, because a large number of investors in Islamic funds are based in countries dependent on oil or commodities for their wealth, the fall in the price of oil has had a large impact on sales, says Tariq Al Rifai, executive director of Failaka Advisors, a consultancy that specialises in Islamic finance.

The price of oil has more than halved since the middle of 2014, dropping to under $30 a barrel last week.

“This has caused investor confidence to go down and resulted in them pulling their money out of Islamic funds,” says Al Rifai.

Just $584m was invested in sharia-compliant funds globally last year, compared with almost $2.4bn in 2014, according to Morningstar, the data provider.

Adil says the challenging political situation in the Middle East and north Africa, where the regions are grappling with the rise of Daesh, the terrorist group, and tensions between Saudi Arabia and Iran, has dented sales of sharia-compliant funds further.

 

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

oil dive drags shariacompliant funds down oil dive drags shariacompliant funds down

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

oil dive drags shariacompliant funds down oil dive drags shariacompliant funds down

 



GMT 06:32 2017 Thursday ,23 March

Morocco Fassi’s

GMT 10:31 2014 Tuesday ,23 December

Mirages of failure: Lebanon cannot wait

GMT 05:06 2024 Tuesday ,06 February

New hunt for flight MH370 gets under way

GMT 05:04 2024 Tuesday ,06 February

Skincare PR Performance Full Year 2017

GMT 17:05 2016 Wednesday ,21 September

Top steelmakers to merge as market struggles with glut

GMT 12:58 2017 Sunday ,13 August

'Locked and loaded' if N. Korea acts 'unwisely'

GMT 21:02 2017 Tuesday ,03 October

Yemen condemns terrorist blast in Bahrain

GMT 00:34 2017 Thursday ,23 March

Expect unstable weather in UAE from Thursday

GMT 13:36 2017 Wednesday ,13 September

Apple lays claim to smartphone future

GMT 23:31 2017 Wednesday ,26 July

Trump set to unveil $10 bn Foxconn deal

GMT 20:17 2013 Thursday ,02 May

Nancy Ajram records new songs while in Egypt

GMT 18:34 2011 Sunday ,17 July

UK media ignores Murdoch role in Iraq war

GMT 15:22 2012 Saturday ,13 October

White table in a curved design

GMT 19:20 2013 Sunday ,10 February

World\'s largest crocodile dies in Philippines
 
 Emirates Voice Facebook,emirates voice facebook  Emirates Voice Twitter,emirates voice twitter Emirates Voice Rss,emirates voice rss  Emirates Voice Youtube,emirates voice youtube  Emirates Voice Youtube,emirates voice youtube

Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2021 ©

Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2021 ©

emiratesvoieen emiratesvoiceen emiratesvoiceen emiratesvoiceen
emiratesvoice emiratesvoice emiratesvoice
emiratesvoice
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
emiratesvoice, Emiratesvoice, Emiratesvoice