Summary of Key Note Address entitle Islamic Finance and Opportunities at 3rd International Regional Development Conference at the University of Bingol, Turkey, October 15, 2015

1. ISLAMIC FINANCE
AND
OPPORTUNITIES
SHAYA’A OTHMAN
Senior Academic Fellow
International Institute of Islamic Thought [IIIT] Vienna USA
East & South East Asia Regional Office. Kuala Lumpur Malaysia
SUMMARY OF THE KEYNOTE ADDRESS
AT THE GENERAL SESSION OF THE CONFERENCE
ON THE OPENING DAY, OCTOBER 15, 2015

3. ISLAMIC FINANCE
[An Important Component of Shariah Commercial Laws]

4. Interest or 'riba' is one of the biggest sin and the only sin that
Allah declares war on those involve in taking or giving or
providing services in 'riba', as clearly stated in the Last Testament,
the Holy Quran in Surah 2:279.

5. Free of Interest
and
Free of Speculation

6. STRATEGIC CONSIDERATION
It is expected that ROI in Islamic Bank is slightly lower than the
Conventional Bank. This is because Islamic Bank has Social
Obligations to fulfil as mentioned in Maqasid Al Shariah

7. TOTAL ASSETS UNDER MANAGEMENT OF
ISLAMIC ISTITUTIONS WORLDWIDE [2014]
1%
Global
Asset
2014
Great Potential for Growth

10. MALAYSIA was the first to establish
Islamic Financial System by introducing
Islamic Financial Institutions known as:
as:
• Lembaga Tabung Haji [TH]. A
Haj Fund. in 1963,
• Bank Islam Malaysia in 1983.

11. Today TH has grown into an Islamic Financial Power
House in Malaysia with Group asset [2013]
RM 49.5 billion
or
USD 16.5 billion,
Lembaga Tabung Haji Malaysia
[Haj Fund Board] [TH]

13. USD
2. 4
trillion
USD
3.2
trillion
2014 2016 2020
USD
1.6
trillion
2012
TOTAL ASSETS UNDER MANAGEMENT
OF ISLAMIC INSTITUTIONS WORLDWIDE
[ Projected 2020]
1%
Global
Asset
SHAYA’A OTHMAN. Senior Academic Fellow
International Institute of Islamic Thought [IIIT].Vienna USA
Keynote address at 3Rd International Regional Development Conference [Oct 15, 2015] University of Bingol, Turkey

15. 80%
15%

16. Global issuance has grown significantly since 2006.
It reached US$120 billion in 2013, bringing the
outstanding Sukuk to US$270 billion by end-2013,
representing ¼ percent of global bond markets
SUKUK
0.25%
of Global
Bond Market

18. SUKUK ISSUSANCE BY REGION
[DEC 2014]
68%
Southeast Asia
29%
Middle East

19. 55%
Malaysian Ringgit
30%
USD
SUKUK ISSUSANCE BY CURRENCY
[DEC 2014]

20. SUKUK
DOMESTIC
INTERNATIONAL

22. MUSLIM
NATIONS
GREAT
POTENTIAL FOR
DEVELOPMENT

25. TAKAFUL
• 10%
• 320 billion
SUKUK
• 20%
• 640 billion
BANKING
• 65%
• 2.1 trillion
PROJECTED OUTLOOK OF ISLAMIC FINANCE IN 2020
BASED ON PAST GROWTH RATE
SHAYA’A OTHMAN. Senior Academic Fellow
International Institute of Islamic Thought [IIIT].Vienna USA
Keynote address at 3Rd International Regional Development Conference [Oct 15, 2015] University of Bingol, Turkey

26. TAKAFUL
• 10%
• 1 trillion
SUKUK
• 20%
• 2 trillion
BANKING
• 65%
• 6.5 trillion
PROJECTED OUTLOOK OF ISLAMIC FINANCE IN 2020
BASED ON
STRATEGIC OPTIONS
USD
10
trillion
2020
SHAYA’A OTHMAN. Senior Academic Fellow
International Institute of Islamic Thought [IIIT].Vienna USA
Keynote address at 3Rd International Regional Development Conference [Oct 15, 2015] University of Bingol, Turkey

27. ISLAMIC FINANCE CREATES OTHER
OPPORTUNITIES
ISLAMIC
FINANCIAL
INDUSTRIES
ISLAMIC
FINANCIAL
EDUCATION AT
UNIVERSITIES
ISLAMIC
FINANCIAL
EXECUTIVES
[ MANAGERS &
ADIVISORS]
MUSLIMS SME
AND
ENTERPRANUERS
SHAYA’A OTHMAN. Senior Academic Fellow
International Institute of Islamic Thought [IIIT].Vienna USA
Keynote address at 3Rd International Regional Development Conference [Oct 15, 2015] University of Bingol, Turkey

28. MUSLIM
NATIONS
GREAT
POTENTIAL FOR
DEVELOPMENT
TURKEY
IN THE WEST
AND
MALAYSIA
IN THE EAST

29. NON MUSLIM NATIONS ARE WORKING TOWARD MAKING THEIR CITIES
AS REGIONAL ISLAMIC FININCIAL CENTERS
ALTERNATIVE STRATEGIC OPTIONS
ISTANBUL AS ISLAMIC FINANCIAL CENTER IN THE WEST &
KUALA LUMPUR AS ISLAMIC FINANCIAL CENTER IN THE EAST

30. REFERENCES
Islamic Finance : Opportunities, Challenges and Policy Options [April 2015], International
Monetary Fund
Islamic Finance Outlook [January 2014]. Standard & Poor’s Rating Service, McGraw Hill Financial
Mahmoud Muhieldin [ MARCH 2012], Realizing The Potential of Islamic Finance. Economic
Premise. Poverty Reduction and Economic Management Network , The World Bank
World Islamic Banking Competitiveness Report 2013-14 [2013] Ernst & Young
Islamic Finance Bulletin [February 2013], Gulf One Lancaster Centre for Economic Research,
Lancaster University Management School
Laporan Tahunan 2013 embaga Tabung Haji Malaysia [2014], Lembaga Tabung Haji Malaysia
Shaya’a Othman [2011] Islamic Management: Maqasid Al Shariah in Islamic Finance. Published
by Insaniah University College Kedah, Malaysia
Shaya’a Othman [Dec 2014] Islamic Management in Finance
http://islamicstrategymanagement.blogspot.com.tr/ Retrieved November 8 , 2015

31. October 14, 2015 Arrival at University of Bingol, Turkey
At the office of Prof. Dr. Gryasettlin BAYDAS, Rector of University of Bingol
Present were Prof Dato Dr Abdul Halim TAMURI [Rector of KUIS], Prof Dr
Norain OTHMAN [UiTM], Dr. Imran [University of Bongol], and Mr
Muhammad Jinna [UWHL]from Singapore.

32. At the Guest House
of University of
Bingol, where we
were staying from 14
Oct till 17 Oct, 2015.

33. Informal Dinner Hosted By Rector of University of Bingol. 14 Oct 2015

34. 15 October 2015 after
the conference being
officiated by Deputy
Prime Minster of Turkey
Speakers consisting of Prof Eprahim NIMNI, Ali Recepi NAZLI . Nahit BINGOL, Prof
Wichael FULLEN and Prof Shaya’a OTHMAN. It was chaired by Prof Yilmaz BINGOL.

35. Receiving Certificates from Governor of Bingol
Region, Turkey . October 15, 2015

36. 16 October 2015, Closing Ceremony by
Chairman of Conference Prof Dr. Ibrahim
TURKGLU

37. PROFESSORS WITH
DIFFERENCES OF THINKING
BUT MOVING FORWARD TO
SHARE KNOWLEDGE AND
EXPERIENCES FOR
BETTEREMENT OF MANKIND
MEETING OF MINDS,
AGREED TO DISAGREED
BUT
MOVING FORWARD TO
DELIVER THE MESSAGE OF
ISLAM FOR PEACE AND
HARMONY FOR BETTEREMENT
OF MANKIND

38. October 17, 2015.
Before living for Istanbul at the Campus of University of Bingol, [Established in
2007]. Presently about 15,000 full time students [Bachelor to Master and PhD]