Intro to islamic_insurance__yavar_moini

• 1. 1st East and Central Africa Islamic Banking ConferenceIntroduction to Islamic Insurance (Takaful)29 April 2009

2. 1st East and Central AfricaIslamic Banking ConferenceTable of ContentsSection 1 Context of Islamic Insurance in KenyaSection 2 Islamic Insurance: An IntroductionSection 3 Global Takaful MarketsSection 4 Types of Islamic InsuranceSection 5 Key Regulatory and Legal IssuesSection 6 Morgan Stanley Islamic Finance Window2 3. 1st East and Central AfricaIslamic Banking ConferenceSection 1Context of Islamic Insurance in Kenya3 4. 1st East and Central Africa CONTEXT OF ISLAMIC INSURANCE IN KENYAIslamic Banking ConferenceInsurance Penetration and Density Comparison Low insurance penetration and Insurance Penetration in 2007Insurance Density in 2007density in Kenya suggeststrong growth potential %$South Africa15.3 North America 3,984 Japan9.6Japan 3,320North America8.7Europe 1,962 Namibia 8.1 South Africa879Europe 8.0Namibia 290India4.7 Botswana 222Botswana 3.9China70 Morocco 3.4Morocco69 China 2.9Tunisia67Kenya(1)2.6India 47Tunisia2.0 Kenya(1) 190.05.0 10.015.0 20.0 01,000 2,000 3,000 4,0005,000SourceSwiss ReWorld Insurance 2007, Islamic Capital Partners (ICP)SourceSwiss ReWorld Insurance 2007, Islamic Capital Partners (ICP)Notes1. Data from Kenya Insurance Regulatory Authority4 5. 1st East and Central Africa CONTEXT OF ISLAMIC INSURANCE IN KENYAIslamic Banking ConferenceInsurance Premiums and General Insurance Breakdown General insurance moreGross Insurance PremiumsGeneral Insurance Breakdown in 2007predominant in Kenya with amarket share of 64% in 2007 US$ MM7001% =16026000 07 % 2 1 903 = 2 0 007fe o nli 032520RN20C AG Life Marine Aviation and Others500 GR 2149% CA455 165Liabilities408 7%Motor400 43% 359142126300107200388 355 Property and Casualty31341%282 25210002003 20042005 2006 2007 Nonlife LifeSourceKenya Insurance Regulatory Authority, ICP AnalysisSource Kenya Insurance Regulatory Authority, ICP Analysis5 6. 1st East and Central Africa CONTEXT OF ISLAMIC INSURANCE IN KENYAIslamic Banking ConferenceInsurance CompaniesClassification and Competitive Landscape Large number of players withInsurance Industry Market Structure in 2007General Insurance Cos Market Share in 2007 (1)low capitalisation facing toughcompetition% 70.0TotalCompanies44 59.0 60.0NonlifeComposites Life31 177 50.0 40.038.0Brokers 190 Insurance Brokers 30.0and 3,085 Insurance AgentsAgents 24 Medical Insurance Providers 20.09.5 10.0 7.57.37.26.3Reinsurers Two locally incorporated Reinsurers 0.0 eseld iaesAia leelAPndncni ni bi iShpapa nivi Ju Ke oom omuePrBlCCAP 5 10 U p To p ToSource Kenyan Insurance Regulatory Authority, ICPSource Kenyan Insurance Regulatory Authority, ICPNotes1. Based on Gross Premiums6 7. 1st East and Central AfricaCONTEXT OF ISLAMIC INSURANCE IN KENYAIslamic Banking Conference Performance Analysis Fragmented market with tough RoE of Top 5 Kenyan Insurance Companies No. of Cos.Total No.ofMaking% of Cos.competition2007 General Insurance Cos. In the Underwriting Making %Companies SegmentProfits Profits40.0MotorCommercial36 2364 25.020.0 16.018.0MotorPrivate 357209.26.0 FireDomestic 35 27770.0 FireIndustrial 35 2366Engineering 35 2571(20.0)Personal Accident 37 2362Theft 35 2366(40.0)Workmens Comp. 35 1646(60.0)Other Liabilities 35 2366Marine35 2160(80.0)(79.0)Aviation 6467Miscellaneous 35 2571 (100.0)Kenindia APABlueJubilee UAPIndustryTotal 38 2258 ShieldRoE SourceKenya Insurance Regulatory Authority, ICP Analysis7 8. 1st East and Central AfricaCONTEXT OF ISLAMIC INSURANCE IN KENYAIslamic Banking Conference Projected Gross Insurance Premiums Gross premiums projected Forecasted Nominal GDPGross Premiums as a % of GDPGross Premiumsbetween US$1.3 BnUS$1.7 Bn in 2014 based on US$ Bn% US$ Bn 60.010.02.0GDP forecast of US$49.3 Bnand insurance penetration of 8.99.02.6% and 3.4%1.749.3 50.0 8.0 7.5 44.5 1.57.040.01.3 40.06.036.1 32.5 5.029.3 4.3 1.0 30.04.03.43.02.6 20.02.0 0.51.0 10.00.014 14 0707 07 2020 2020 20 0.0wh eS e igagag U Lo0.0H erer14 14 Av Av 20 20 09 10 11 12 13 14 aldw hric202020202020orig LoAf W H Source Global Insight, ICP Analysis Source Global Insight, ICP Analysis Source ICP Analysis 8 9. 1st East and Central Africa CONTEXT OF ISLAMIC INSURANCE IN KENYAIslamic Banking ConferencePotential Takaful Size by 2014 Takaful industry in Kenya could Projected Share of Takaful Premiums in 2014be potentially $250 MM in 2014US$ MM700602600500400300 251 19216820012810084640 Insurance Premiums 2007 Low PenetrationHigh Penetration 5%10%15%Source Kenya Insurance Regulatory Authority, ICP Analysis 9 10. 1st East and Central Africa CONTEXT OF ISLAMIC INSURANCE IN KENYAIslamic Banking ConferenceSummary Industry competitive with 44 insurance players, yet insurance penetrationand density very low at 2.6% and $19 respectively General insurance dominates the market with a market share of 64% Only a handful companies generating growth with profitability, mostoperators either dormant, generalists or serving captive markets Companies making significant underwriting losses in private motor andworkmens compensation Industry RoE averaging at 9.2% Low capitalisation of companies resulting in a lack of innovative productsand tough competition Islamic Insurance in Kenya could potentially be $250 MM by 2014 10 11. 1st East and Central AfricaIslamic Banking ConferenceSection 2Islamic Insurance: An Introduction 11 12. 1st East and Central Africa ISLAMIC INSURANCE: AN INTRODUCTIONIslamic Banking ConferenceOverview Takaful is a US$2 Bn industry (2006) growing by at least 20%30% p.a.(against global insurance premium of $3.7 Tn) These premiums are projected to increase to at least US$10 Bn by 2015 More than 250 takaful companies globally Takaful concept is similar to conventional cooperative insurance and involvesincreased emphasis on transparency and corporate governance Takaful model is double compliant: incorporates industry best practices inunderwriting, customer service, reserving, etc., while being in conformitywith Sharia principles Industry is emerging as an important source of attracting foreigndirect investment Existence of Islamic banking and takaful industry is an important catalyst forinfrastructure and developmental projects in many markets 12 13. 1st East and Central AfricaISLAMIC INSURANCE: AN INTRODUCTIONIslamic Banking Conference Current Industry Dynamics The Takaful industry is poisedfor significant growth as DemandSupplydemand increases and industryenablers are further aligned Economic growth Fragmented landscape Increase in GDP per capita Undercapitalised Youthful demography Limited retakaful capacity Increasing awareness of Islamic Problematic assetbanking and takafulmanagement Greater desire for ShariaGlobal Takaful Local solution offeringscompliant offeringsIndustry Local distribution channels Increase in Sharia compliantfinancing (Two Islamic banks inKenya) Compulsory protection Licensing and competition Better regulation Greater role for private sector Increased market-led initiatives Facilitation 13 14. 1st East and Central Africa ISLAMIC INSURANCE: AN INTRODUCTIONIslamic Banking ConferenceTakaful Concept ExplainedConventional Company accepts premiums from the insured at a level which it anticipates will coverInsuranceclaims and result in a profit(Nonmutual) This process of anticipation is akin to maysir (speculation) Insured pays premiums to the Company in exchange for indemnity against risks that may not occur This process of ambiguity is akin to gharar (uncertainty) Company engages in investments that derive their income from interest and/or prohibited industries This process is akin to riba (usury) and/or relates to haram (prohibited) activitiesTakaful Based on principal of Taawun (mutual assistance) that is Tabarru (voluntarily) provided Similar to conventional cooperative insurance whereby participants pool their funds together to insure one another14 15. 1st East and Central Africa ISLAMIC INSURANCE: AN INTRODUCTIONIslamic Banking ConferenceTakaful Concept Explained (contd)Five Key Mutual GuaranteeBasic objective of Takaful is to pay a defined loss from a definedElementsfund. Loss is borne by a fund created by the donations of policyholders. Liability is spreadamongst the policyholders and all losses divided between them Ownership of FundDonating their contributions to the Takaful fund, policyholders areowners of the fund and entitled to its profits Elimination of UncertaintyDonations, causing transfer of ownership to the fund, arevoluntary to mutually help in the case of a policyholders loss without any predeterminedmonetary benefit Management of Takaful FundManagement is by operator who, depending on theadopted model, utilises either (or a combination) of two Sharia compliant contracts Investment ConditionAll investments must be Sharia compliant, which prohibitsinvestment in haram industries and requires use of instruments that are free of riba15 16. 1st East and Central Africa ISLAMIC INSURANCE: AN INTRODUCTIONIslamic Banking ConferenceComparison of Takaful and Conventional Insurance Takaful can be considered aSharia compliant form of Takaful Cooperative InsuranceProprietary Insuranceconventional cooperativeinsuranceContractsUtilised Donation and mutual Mutual contractExchange contract contractCompany Pay claims withResponsibility Pay claims from underwriting fund andPay claims withunderwriting funds and interest free loan in caseunderwriting fundsshareholder equityof shortfallParticipantsResponsibilityPay contributions Pay contributions Pay premiumsCapitalUtilisedParticipants fundsParticipating capital Share capitalInvestmentConsiderationsNo restrictions except No restrictions exceptSharia compliant prudential prudential16 17. 1st East and Central AfricaISLAMIC INSURANCE: AN INTRODUCTIONIslamic Banking Conference Timeline in Perspective Contemporary execution of Worlds first fullTakaful has existed for less First Takaful companyfledged Islamic bankis established inthan three decadesis established MalaysiaTakafulDubai Islamic Bank WorldwideMalaysiareinsurance Charter of Sudanese Islamic operators enter Medina Insurance Company is the ReTakaful Al-diyah/ established as the worlds ASEAN ReTakafulmarket: Hannover Al-aqila1st Takaful company byInternational LimitedReTakaful, Faisal Islamic Bank of(ARIL) the first Bahrain; Munich Fidyah Sudan active Islamic insurer Re, Malaysia Cooperatives 622 1963 1975197719791984 19972006 First Islamic Arab Islamic Malaysian Takaful Fiqh Council of the bankInsuranceAct comes into effect OIC (1) approves the established inCompany (AIIC) Takaful system in Egypt is established in1985 as the correct Dubai by the Dubai alternative to National Company for Islamic Bank conventional Fatwa issued by the Fiqh Cooperative Insurance isinsurance in full council of Muslim Worldestablished in Saudi Arabiacompliance with League in favor of by royal decree and isSharia Islamic insurance100% owned by thegovernment SourceFactiva, Company Websites, IICP Notes 1. The Organisation for the Islamic Conference17 18. 1st East and Central AfricaISLAMIC INSURANCE: AN INTRODUCTIONIslamic Banking Conference Takaful Business ModelMore Transparency 1. Wakala Model2. Mudaraba Model A principal-agent relationship is used between the A principal-manager relationship is used between the policyholders and the Takaful operator for both underwriting policyholders (capital providers) and the Takaful operator and investment activities(entrepreneur) for both underwriting and investment activities PolicyholdersContributions Underwriting Policyholders Contributions Policyholders (Participants) Surplus(Participants) FundUnderwriting fee and investment fee are Wakala fee Policyholders Fundspecified percentages of underwritingsurplus and investment profits,respectively Takaful Operator Investment Takaful OperatorUnderwriting Surplus (Company)Income (Company) and Investment InvestmentIncome fee ReTakaful ReTakaful Operator Operator 3. Combined Model The combined model utilises both contracts. The Wakala contract is used for underwriting activities, while the Mudaraba contract is used for investment activities. This model is recommended by certain financial services regulators (including the Central Bank of Bahrain) and international organisations18 19. 1st East and Central AfricaIslamic Banking ConferenceSection 3Global Takaful Markets 19 20. 1st East and Central AfricaGLOBAL TAKAFUL MARKETSIslamic Banking Conference Low Insurance Penetration in Important Growth Regions Insurance penetration is visibly Premiums as % of Nominal GDP in 2006 Premiums per Capita in 2006lower in developing countriesand those with sizeable Muslim US$ MM US$ Tomorrow Todaypopulation Possible future Growth marketsNorth WesternJapan and NI growth markets forfor TakafulAmericaEuropeAsia (1) 12 Takaful 11 1,486 1,746 3,033 10 98 World = 7.52%86South andMiddle EastAfrica5East Asiaand Central Asia4 34163542)(110 North WesternJapan SouthMiddle AfricaAmerica Europeand NI and East East and AsiaAsiaCentralAsia Source Swiss Re Sigma No. 4 (2007), E&Y Analysis, ICPSource Swiss Re Sigma No. 4 (2007), E&Y Analysis, ICP Notes 1. Newly industrialised Asian economies 20 21. 1st East and Central Africa GLOBAL TAKAFUL MARKETSIslamic Banking ConferenceLow Insurance Penetration Can Be Attributed to a Number of FactorsTakafulA Viable Alternative Religious Sharia sensitivities led to injunctions against conventional insurance. Severely restricting demand, particularly for personal and life products Cultural Extended family system historically acted as the primary source of financial support to the dependent population, particularly the elderly Regulatory and Insurance sector historically lacked regulation (and in some instances been closed) Fiscal discouraging insurance operators from writing business and subsequently leading toreduced customer awareness Lack of fiscal incentives aimed at encouraging savings, together with a high level of state support, have annulled the creation of corporate pension plans and reduced the demand for private sector annuity and savings products Demographic Legislation aimed at increasing private sector savings is a response to ageing populations where retirement is outpacing taxable workforce expansion. Countries with a youthful population and rapidly expanding workforce do not yet face these problems 21 22. 1st East and Central Africa GLOBAL TAKAFUL MARKETSIslamic Banking ConferenceUS$2 Bn Global Takaful Industry And Growing by 20%30% p.a. Global Gross Takaful Contributions by Year [(2)] US$ MM5,000CAGR = 17.9%CAGR 20042006 (%)4,50070 484,000 676Indian 44.03,500 Subcontinent3,000 Levant 31.2 1,4462,50020.4%Africa 33.3= CAGR2,000 24 11 215 20Far East 20.481811,500145688 121552GCC17.91,000474 2,065 500 1,070929 7700(1)2004 200520062010Source Takaful Re Limited and Middle East Insurance Review (2008), E&Y Analysis, ICPNotes1. Estimated2. [Forecasted]22 23. 1st East and Central Africa GLOBAL TAKAFUL MARKETSIslamic Banking ConferenceGlobal Takaful Markets The takaful industry is rapidly UK facilitative regulatoryIndian subcontinent region Malaysiaan establishedexpanding beyond its home initiatives and mature characterised by large Muslim Islamic financial servicesmarkets insurance market,populations and low insurance density.industry with a highconsidered a gateway toIndia will become attractive once the density of life business.Muslim populations inIslamic finance framework is defined.continental Europe. Indonesialarge Muslim population with very low insurance density. North Africa future growthSudan facilitativeMiddle East majority Muslim market with majority Muslimregulatory environment thatpopulation with rapid economic populations; however, lackshas allowed the Takafulgrowth. KSA and Kuwait the facilitative regulatory framework. industry to flourish.two largest GCC markets interms of Takaful premiums. Current Growth MarketsFuture Growth MarketsSource Takaful Re Limited and Middle East Insurance Review (2008), Factiva, E&Y Analysis, ICP23 24. 1st East and Central AfricaGLOBAL TAKAFUL MARKETSIslamic Banking Conference Some 250 Takaful Operators Already Operational (133 in 2006) Tremendous growth in numberof takaful operators with globalIndiannames like Swiss Re, AIG, etc., subcontinent Levant 9 Takafulentering the market Other regions 21 Takaful 4 Takaful operators. operators;operators.however, noneyet exist in India.Far East 22 Takafuloperators.Africa 21 Takaful The GCC 59 Takafuloperators, the majorityoperators, the majority ofof which are found inwhich are found in Iran 17 Takaful operators.Sudan. Saudi Arabia. Source Takaful Re Limited and Middle East Insurance Review (2008), E&Y Analysis, ICP 24 25. 1st East and Central Africa GLOBAL TAKAFUL MARKETSIslamic Banking ConferenceGrowth in Takaful Far Outpaces Conventional SegmentGrowth of the Insurance Sector and Takaful Sector by CountryCAGR 20042006% 6970605150454240 3630 31302722 22 21 19192020 17161613141311 8107 6 33 0 ) (1n an and han taar tAE A aiypnosisiaiesk KS atw an rdla ne ayEg hr Uad baQKuai Jo iL Ba aldo ThlLe ng M SrIn Ba Conventional Insurance TakafulSource Swiss ReSigma No. 4 (2007) and Business Monitor for International Insurance, Takaful Re Limited and Middle East Insurance Review (2008) for Takaful, E&Y Analysis, ICPNotes1. Bahrains insurance sector growth and Lebanons Takaful sector growth are both for 20052006 only 25 26. 1st East and Central Africa GLOBAL TAKAFUL MARKETSIslamic Banking ConferenceCapital Surplus GCC Region Is Leading This Growth Momentum GCC is the single largest Global Gross Takaful Contributions in the GCCtakaful market with $1 Bn inpremiums (2006);US$ MM1,200CAGR = 17.9% CAGR 20042006 (%) GCC is also an active takafulinvestor in other regions 17.9%34 R= CAG5065 15 900 34 42 90 Bahrain52.5 83 15 25 31 54Qatar42.3 600 UAE45.7831756 647 Kuwait 29.6 300 Saudi Arabia 13.40200420052006 (Estimated)Source Takaful Re Limited and Middle East Insurance Review (2008), E&Y Analysis, ICP 26 27. 1st East and Central AfricaIslamic Banking ConferenceSection 4Types of Islamic Insurance 27 28. 1st East and Central Africa TYPES OF ISLAMIC INSURANCEIslamic Banking ConferenceTakaful Business Broadly Categorised as General and FamilyGeneral Protection against specific contingencies, e.g., fire, theft andaccidentFamily and Long- Insurance contract for payment of a stated amount of money toTermthe beneficiary on the death or total or partial disability of theinsured Long-term savings plans to take care of investment needs of theclientHealth Protection against loss by illness or bodily injury,providing coverage for medical treatment Various practices are followed in the market for classification ofhealth takaful, i.e., under general or family or independently28 29. 1st East and Central Africa TYPES OF ISLAMIC INSURANCEIslamic Banking ConferenceGeneral Takaful General TakafulMotorProperty and CasualtyMarine, Aviation andTransit Comprehensive Property All Risks Marine CargoMotor Fire and Allied Perils Inland Transit Third-Party Liability Homeowners and Marine Hull Fleet TakafulHouseholds Business Interruption Deterioration of Stock Engineering General Accident Liability 29 30. 1st East and Central Africa TYPES OF ISLAMIC INSURANCEIslamic Banking ConferenceMotor TakafulKey Considerations Visibility arm in the retail sector Risk assessment is relatively ComprehensiveCoverage against losses due to accident, fire, theft andsimplerpolicyholders liability for personal injury or property damage to Higher retention ratio third parties arising from the use of the insured vehicleThird-PartyIndemnity against legal liability to third parties arising from the useLiabilityof the insured vehicle in respect of death or bodily injury to third- party and damages to materials and property owned by third-partyFleet TakafulCovers all the vehicles belonging to an organisation in a single takaful certificate 30 31. 1st East and Central Africa TYPES OF ISLAMIC INSURANCEIslamic Banking ConferenceProperty and Casualty TakafulKey Considerations Higher uncertainty incatastrophe risk profiles Property Coverage against losses and damages due to a wide range of Higher exposures causes such as fire, lightning, explosions, riots and burglary. Protection against damage to stock and business interruptionsGeneral Accident Coverage against risks inherent in human society including plans such as money protection, fidelity guarantee, travel plan, burglary effects, event cancellation and personal accident (individual and group)Liability Coverage against third-party liabilities including those towardsemployees including plans like general third-party liability, productliability, employers liability, workmens compensation, professionalliability, ship repairers liability, airport operators and haulersliability31 32. 1st East and Central Africa TYPES OF ISLAMIC INSURANCEIslamic Banking ConferenceMarine, Aviation and Transit TakafulKey Considerations Trade sensitive CargoCoverage for goods whilst in transit by sea or airIndividual plans Complex risk assessmentprovide coverage for a single shipment while open cover/annualprocessplans cover all shipments during the takaful periodInland Transit Coverage for goods whilst in transit by road or railIndividual plans provide coverage for a single transit while open cover/annual plans provide coverage for all transits during the takaful periodMarine HullCoverage for ship owners/ship managers against various maritime perils 32 33. 1st East and Central Africa TYPES OF ISLAMIC INSURANCEIslamic Banking ConferenceFamily and Long-Term Takaful Family and Long-Term Takaful Protection Plans Savings Plans Family Protection Plans Children Education Plans Mortgage Shield Retirement Plans Credit Shield Investment Plans Group Plans Health Plans 33 34. 1st East and Central Africa TYPES OF ISLAMIC INSURANCEIslamic Banking ConferenceProtection PlansIndividual Plans Products offering protection against death and disability. Priced and underwritten generally in the name of a single person, although may have more than one life assuredMortgage ShieldProduct generally designed for financial institutions providing mortgageoutstanding loan balance paid from the plan in case of customers death during term of the loanCredit ShieldCover to credit card holders by protecting the outstanding credit card balance in the event of an untimely death of a card holderGroup PlansSingle insurance policy that protects a specific group of people e.g., employees of a company, members of a professional organisation, or alumni of a collegeHealth Plans Coverage for medicine, visits to clinics or emergency room, hospitalisation and other medical expensesmany options are offered with varied coverage 34 35. 1st East and Central Africa TYPES OF ISLAMIC INSURANCEIslamic Banking ConferenceSavings PlansChildren Education Ensures that the childs education continues unhampered, in casePlan of the unfortunate event of the death of a parent (life insured)Retirement PlanEnsures regular payments to the policyholder from retirement till deathInvestment PlanGenerally a flexible policy that combines savings with life cover 35 36. 1st East and Central Africa TYPES OF ISLAMIC INSURANCEIslamic Banking ConferenceComparison of General and Family TakafulComparison of General and Family TakafulCriteria GeneralFamilyTechnical KnowledgeHigher LowerHR Intensive LowerHigherInfrastructure LowerHigher (Health)Regulatory Jurisdiction Dependent Jurisdiction DependentCompetitionJurisdiction Dependent Jurisdiction DependentGestation Period LowerHigherCapital IntensiveHigher Lower 36 37. 1st East and Central AfricaIslamic Banking ConferenceSection 5Key Regulatory and Legal Issues37 38. 1st East and Central Africa KEY REGULATORY AND LEGAL ISSUESIslamic Banking ConferenceKey Regulatory and Legal Issues New concept for regulators Financial reporting different from conventional insurance Separate disclosure for policyholders funds and shareholders funds Family takaful has no guarantees with no defined benefit whereasconventional insurance has defined benefits, thus requiring more regulatorysupervision Different companies are following different policies in respect of distributionof surplus Asset profile of takaful companies will be different from conventionalinsurance companies due to prohibition of investing in interest-bearinginstruments and certain types of equities38 39. 1st East and Central AfricaIslamic Banking ConferenceSection 6Morgan Stanley Islamic Finance Window39 40. 1st East and Central AfricaMORGAN STANLEY ISLAMIC FINANCE WINDOWIslamic Banking Conference Morgan Stanley Islamic Finance Islamic Financing Transactions Full Service Offering The Morgan Stanley Islamic Capital Market & Bank Financing Transactions (as Bookrunner/MLA)Finance Window provides a full First international Islamic mandatory convertible for Tabreedservice offering The team has Sukuk Upsized from initial AED1.1 Bn to AED1.7 Bn (AED1.5 Bn plus AED200 MM increase option)structuring, and execution First true-sale securitization in the GCC region creating Islamic RMBScapabilities, as well as asset Tamweel $220 MM mortgage backed security offeringmanagement and structuredproduct structuring expertise First time tranching in a Sukuk product was allowed Also a member of the Islamic Awarded Best Structured Deal 2007 by Islamic Finance NewsFinancial Experts Group First real estate project financing in the MENA regionadvising the UK Governmenton their inaugural Sukuk issue Aldar $2.1 Bn syndicated credit facilityand Islamic Finance strategy Fund Related Products Al-Futtaim MENA Real Estate Sharia Development Fund. $500MM first closing in May 08. Sole Sharia Structuring Advisor and Placement Agent $300MM Pearl Qatar Real Estate Development Fund. Closed in Jan 08 and was over subscribed. Sole Sharia Structuring Advisor and Placement Agent Saudi Spanish Infrastructure Fund. $680MM first closing in December 2007. Sole Sharia Structuring Advisor and Placement Agent Structured Products A US$10 Bn structured notes programme has been established to issue a broad range of Islamic structured products Developed innovative Islamic short-medium term products for financial institutions that improve upon traditional commodity murabaha related instruments 40 41. 1st East and Central Africa MORGAN STANLEY ISLAMIC FINANCE WINDOWIslamic Banking ConferenceSharia Supervisory Board The Morgan Stanley ShariaSheikh Nizam Yaquby, BahrainSupervisory Board consists ofworld renowned scholars toConsidered one of the worlds leading experts in the field. He is a member of the Sharia supervisory boards forensure authenticity and Sharia several Islamic financial institutions, including Credit Suisse, Citi Islamic Investment Bank, Amanah Financecompliance of MorganHSBC, Dow Jones Islamic Index, Abu Dhabi Islamic Bank, ABC Islamic Bank, Royal Bank of Canada, ShamilStanleys Islamic Finance Bank and others.businessSheikh Yaquby was educated in the classical Sharia sciences in his native Bahrain and in Makkah. He is agraduate in Economics and Comparative Religion from McGill University.Dr Mohamed Elgari, Saudi ArabiaFormer director of the Center for Research in Islamic Economics at King Abdulaziz University in Saudi Arabia,where he also serves as an Associate Professor of Islamic Economics. He is an expert at the Islamic JurisprudenceAcademy, Jeddah. As well as a member of the Academic Committee at the Islamic Development Bank (IDB) andthe Islamic Fiqh Academy in Jeddah. Dr. Elgari is a member of the Sharia Boards of International IslamicFinancial Market, Dow Jones Islamic Index, National Commercial Bank, Credit Suisse, Amanah Finance HSBCamong others.Dr Elgari holds a Ph.D. in economics from the University of California.Dr Mohd Daud Bakar, MalaysiaDr. Bakar is currently the President/CEO of the International Institute of Islamic Finance and Amanie BusinessSolutions Sdn. Bhd. He was an associate professor at the International Islamic University Malaysia. He is alsoChairman of the Sharia Advisory Council at the Central Bank of Malaysia, member of the Sharia AdvisoryCouncil at the Securities Commission of Malaysia, Accounting and Auditing Organization for Islamic FinancialInstitutions and International Islamic Financial Market in Bahrain, Dow Jones Islamic Market Index as well as forvarious financial institutions. He is a licensed Sharia advisor for Islamic Securities in Malaysia. In 2005 he wasawarded the Islamic Banker Award by the Association of Islamic Banking Institutions Malaysia.He received his first degree in Sharia from University of Kuwait and PhD from the University of St. Andrews. In2002, he completed his external Bachelor of Jurisprudence at University of Malaya.41 42. 1st East and Central Africa MORGAN STANLEY ISLAMIC FINANCE WINDOWIslamic Banking ConferenceContact DetailsYavar MoiniTel: + 9714 363 4829Email: [email protected] RazaTel: + 9714 363 4836Email: [email protected]