An investment appraisal of international maritime assets for Malaysian Islamic financial institutions - the case for equity finance

The purpose of this research is to investigate the overall investment performance of international maritime assets in order to facilitate Islamic equity finance and investment involving Malaysian Islamic finance institutions, retail and also institutional investors. Shipping is a strong growth indus...

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Main Authors:	Abdullah, Adam, Hassan, Rusni, Kassim, Salina
Format:	Article
Language:	English English
Published:	International Islamic University Malaysia 2017
Subjects:	HG3368 Islamic Banking and Finance
Online Access:	http://irep.iium.edu.my/59832/ http://irep.iium.edu.my/59832/ http://irep.iium.edu.my/59832/1/59832-an%20investment%20appraisal.pdf http://irep.iium.edu.my/59832/7/59832_An%20investment%20appraisal%20of%20international%20_scopus.pdf

id	iium-59832
recordtype	eprints
spelling	iium-598322018-04-02T07:57:48Z http://irep.iium.edu.my/59832/ An investment appraisal of international maritime assets for Malaysian Islamic financial institutions - the case for equity finance Abdullah, Adam Hassan, Rusni Kassim, Salina HG3368 Islamic Banking and Finance The purpose of this research is to investigate the overall investment performance of international maritime assets in order to facilitate Islamic equity finance and investment involving Malaysian Islamic finance institutions, retail and also institutional investors. Shipping is a strong growth industry with about 84% of global trade carried by the international shipping industry. The problem is that Malaysian Islamic financial institutions have essentially no exposure and thus understanding of 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. This research involves an investment analysis of a full population of historical data over a period of 20 years to evaluate maritime performance by adopting IRR, net yield and standard deviation measures of risk and return. We also develop a correlation matrix for maritime assets and compare returns to other real and financial investments. Our findings reveal that whilst earnings are volatile in comparison to capital market financial products, unlevered, tax-free returns on maritime assets are very attractive. The significance is that Islamic equity finance, rather than debt at the time-value-of-money should enable the development of international shipping in Malaysia. International Islamic University Malaysia 2017-11 Article PeerReviewed application/pdf en http://irep.iium.edu.my/59832/1/59832-an%20investment%20appraisal.pdf application/pdf en http://irep.iium.edu.my/59832/7/59832_An%20investment%20appraisal%20of%20international%20_scopus.pdf Abdullah, Adam and Hassan, Rusni and Kassim, Salina (2017) An investment appraisal of international maritime assets for Malaysian Islamic financial institutions - the case for equity finance. Al-Shajarah, Special Issue: Islamic Banking and Finance. pp. 27-59. ISSN 1394-6870 http://journals.iium.edu.my/shajarah/index.php/shaj/issue/view/46
repository_type	Digital Repository
institution_category	Local University
institution	International Islamic University Malaysia
building	IIUM Repository
collection	Online Access
language	English English
topic	HG3368 Islamic Banking and Finance
spellingShingle	HG3368 Islamic Banking and Finance Abdullah, Adam Hassan, Rusni Kassim, Salina An investment appraisal of international maritime assets for Malaysian Islamic financial institutions - the case for equity finance
description	The purpose of this research is to investigate the overall investment performance of international maritime assets in order to facilitate Islamic equity finance and investment involving Malaysian Islamic finance institutions, retail and also institutional investors. Shipping is a strong growth industry with about 84% of global trade carried by the international shipping industry. The problem is that Malaysian Islamic financial institutions have essentially no exposure and thus understanding of 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. This research involves an investment analysis of a full population of historical data over a period of 20 years to evaluate maritime performance by adopting IRR, net yield and standard deviation measures of risk and return. We also develop a correlation matrix for maritime assets and compare returns to other real and financial investments. Our findings reveal that whilst earnings are volatile in comparison to capital market financial products, unlevered, tax-free returns on maritime assets are very attractive. The significance is that Islamic equity finance, rather than debt at the time-value-of-money should enable the development of international shipping in Malaysia.
format	Article
author	Abdullah, Adam Hassan, Rusni Kassim, Salina
author_facet	Abdullah, Adam Hassan, Rusni Kassim, Salina
author_sort	Abdullah, Adam
title	An investment appraisal of international maritime assets for Malaysian Islamic financial institutions - the case for equity finance
title_short	An investment appraisal of international maritime assets for Malaysian Islamic financial institutions - the case for equity finance
title_full	An investment appraisal of international maritime assets for Malaysian Islamic financial institutions - the case for equity finance
title_fullStr	An investment appraisal of international maritime assets for Malaysian Islamic financial institutions - the case for equity finance
title_full_unstemmed	An investment appraisal of international maritime assets for Malaysian Islamic financial institutions - the case for equity finance
title_sort	investment appraisal of international maritime assets for malaysian islamic financial institutions - the case for equity finance
publisher	International Islamic University Malaysia
publishDate	2017
url	http://irep.iium.edu.my/59832/ http://irep.iium.edu.my/59832/ http://irep.iium.edu.my/59832/1/59832-an%20investment%20appraisal.pdf http://irep.iium.edu.my/59832/7/59832_An%20investment%20appraisal%20of%20international%20_scopus.pdf
first_indexed	2023-09-18T21:24:48Z
last_indexed	2023-09-18T21:24:48Z
_version_	1777412120181211136

An investment appraisal of international maritime assets for Malaysian Islamic financial institutions - the case for equity finance

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