An Islamic wealth management investment appraisal of oil tankers

The purpose of this research is to develop an Islamic wealth management investment appraisal of the performance of tankers as a primary segment within international shipping and an important component of the oil and energy markets. Shipping is a strong growth industry with about 84% of global trade...

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Main Authors:	Abdullah, Adam, Hassan, Rusni, Kassim, Salina
Format:	Article
Language:	English
Published:	EconJournals 2017
Subjects:	HE199 Freight (General) HG3368 Islamic Banking and Finance HG4001 Financial management. Business finance. Corporation finance. HG4501 Stocks, investment, speculation
Online Access:	http://irep.iium.edu.my/59103/ http://irep.iium.edu.my/59103/ http://irep.iium.edu.my/59103/1/5253-13857-1-PB.pdf

id	iium-59103
recordtype	eprints
spelling	iium-591032018-01-12T07:02:51Z http://irep.iium.edu.my/59103/ An Islamic wealth management investment appraisal of oil tankers Abdullah, Adam Hassan, Rusni Kassim, Salina HE199 Freight (General) HG3368 Islamic Banking and Finance HG4001 Financial management. Business finance. Corporation finance. HG4501 Stocks, investment, speculation The purpose of this research is to develop an Islamic wealth management investment appraisal of the performance of tankers as a primary segment within international shipping and an important component of the oil and energy markets. Shipping is a strong growth industry with about 84% of global trade carried by the international shipping industry. The problem is that many Islamic wealth management institutions and investors have minimal exposure to investment in international shipping. However, shipping is a highly capital intensive industry and currently 75% of ship lending has been conducted by European banks and financed on a conventional basis. Post financial crisis, ship owners, ship lenders and shipyards have all been exposed to the impact of over-levered balance sheets and debt finance. Our objectives are to evaluate the risks and returns of shipping under the framework of Islamic equity finance, and to analyze the performance of investing in tankers over the long term, in order to appeal to private and institutional clients. Accordingly, our methodology adopts an investment analysis of a full population of historical data over a period of 20 years, to evaluate performance involving a maritime return on investment, internal rate of return, net yield and standard deviation measures of risk and return. Our findings reveal that whilst earnings are volatile in comparison to capital market financial products, unlevered, tax-free returns on tanker investments out-perform financial and other real assets. The significance is that Islamic equity finance, rather than debt at the time-value-of-money, should enhance investment in the tanker sector. EconJournals 2017 Article PeerReviewed application/pdf en http://irep.iium.edu.my/59103/1/5253-13857-1-PB.pdf Abdullah, Adam and Hassan, Rusni and Kassim, Salina (2017) An Islamic wealth management investment appraisal of oil tankers. International Journal of Economics and Financial Issues, 7 (5). pp. 59-70. ISSN 2146-4138 http://econjournals.com/index.php/ijefi/article/view/5253/pdf
repository_type	Digital Repository
institution_category	Local University
institution	International Islamic University Malaysia
building	IIUM Repository
collection	Online Access
language	English
topic	HE199 Freight (General) HG3368 Islamic Banking and Finance HG4001 Financial management. Business finance. Corporation finance. HG4501 Stocks, investment, speculation
spellingShingle	HE199 Freight (General) HG3368 Islamic Banking and Finance HG4001 Financial management. Business finance. Corporation finance. HG4501 Stocks, investment, speculation Abdullah, Adam Hassan, Rusni Kassim, Salina An Islamic wealth management investment appraisal of oil tankers
description	The purpose of this research is to develop an Islamic wealth management investment appraisal of the performance of tankers as a primary segment within international shipping and an important component of the oil and energy markets. Shipping is a strong growth industry with about 84% of global trade carried by the international shipping industry. The problem is that many Islamic wealth management institutions and investors have minimal exposure to investment in international shipping. However, shipping is a highly capital intensive industry and currently 75% of ship lending has been conducted by European banks and financed on a conventional basis. Post financial crisis, ship owners, ship lenders and shipyards have all been exposed to the impact of over-levered balance sheets and debt finance. Our objectives are to evaluate the risks and returns of shipping under the framework of Islamic equity finance, and to analyze the performance of investing in tankers over the long term, in order to appeal to private and institutional clients. Accordingly, our methodology adopts an investment analysis of a full population of historical data over a period of 20 years, to evaluate performance involving a maritime return on investment, internal rate of return, net yield and standard deviation measures of risk and return. Our findings reveal that whilst earnings are volatile in comparison to capital market financial products, unlevered, tax-free returns on tanker investments out-perform financial and other real assets. The significance is that Islamic equity finance, rather than debt at the time-value-of-money, should enhance investment in the tanker sector.
format	Article
author	Abdullah, Adam Hassan, Rusni Kassim, Salina
author_facet	Abdullah, Adam Hassan, Rusni Kassim, Salina
author_sort	Abdullah, Adam
title	An Islamic wealth management investment appraisal of oil tankers
title_short	An Islamic wealth management investment appraisal of oil tankers
title_full	An Islamic wealth management investment appraisal of oil tankers
title_fullStr	An Islamic wealth management investment appraisal of oil tankers
title_full_unstemmed	An Islamic wealth management investment appraisal of oil tankers
title_sort	islamic wealth management investment appraisal of oil tankers
publisher	EconJournals
publishDate	2017
url	http://irep.iium.edu.my/59103/ http://irep.iium.edu.my/59103/ http://irep.iium.edu.my/59103/1/5253-13857-1-PB.pdf
first_indexed	2023-09-18T21:23:40Z
last_indexed	2023-09-18T21:23:40Z
_version_	1777412048544595968

An Islamic wealth management investment appraisal of oil tankers

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