An assessment of Islamic financial institution and investor exposure to maritime assets

The aim of this paper is to investigate the overall exposure of Islamic Financial Institutions involving retail and institutional investors to international maritime assets in order to facilitate Islamic equity finance and investment by Islamic finance institutions involving retail and institutional...

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Main Authors:	Abdullah, Adam, Hassan, Rusni, Kassim, Salina
Format:	Article
Language:	English English
Published:	International Economic Society 2017
Subjects:	HE199 Freight (General) HG3368 Islamic Banking and Finance
Online Access:	http://irep.iium.edu.my/59887/ http://irep.iium.edu.my/59887/ http://irep.iium.edu.my/59887/1/Accepted%20Artilce%20%28IJEP%29.pdf http://irep.iium.edu.my/59887/2/IJEP%20acceptance%20letter%20%2821Sept17%29.pdf

id	iium-59887
recordtype	eprints
spelling	iium-598872017-12-04T03:11:50Z http://irep.iium.edu.my/59887/ An assessment of Islamic financial institution and investor exposure to maritime assets Abdullah, Adam Hassan, Rusni Kassim, Salina HE199 Freight (General) HG3368 Islamic Banking and Finance The aim of this paper is to investigate the overall exposure of Islamic Financial Institutions involving retail and institutional investors to international maritime assets in order to facilitate Islamic equity finance and investment by Islamic finance institutions involving retail and institutional investors. Shipping is a strong growth industry with about 84% of global trade carried by the international shipping industry. 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 study analyses the extent of Islamic investment and finance in international shipping. Our findings reveal that whilst Middle Eastern Islamic financial institutions have embraced financing of maritime assets, Malaysian institution have little or no exposure to international shipping. However, in terms of substance over form, Middle Eastern investors have structured debt ship-finance transactions to ensure fixed-income, rather than fully accept equity risk and returns. The significance is that Islamic equity finance, rather than structure debt finance, should increase the development of international shipping by Islamic financial institutions and investors. International Economic Society 2017-12 Article PeerReviewed application/pdf en http://irep.iium.edu.my/59887/1/Accepted%20Artilce%20%28IJEP%29.pdf application/pdf en http://irep.iium.edu.my/59887/2/IJEP%20acceptance%20letter%20%2821Sept17%29.pdf Abdullah, Adam and Hassan, Rusni and Kassim, Salina (2017) An assessment of Islamic financial institution and investor exposure to maritime assets. International Journal of Economic Perspectives, 11 (4). ISSN 1307-1637 (In Press) http://www.econ-society.org/ijep_home.php
repository_type	Digital Repository
institution_category	Local University
institution	International Islamic University Malaysia
building	IIUM Repository
collection	Online Access
language	English English
topic	HE199 Freight (General) HG3368 Islamic Banking and Finance
spellingShingle	HE199 Freight (General) HG3368 Islamic Banking and Finance Abdullah, Adam Hassan, Rusni Kassim, Salina An assessment of Islamic financial institution and investor exposure to maritime assets
description	The aim of this paper is to investigate the overall exposure of Islamic Financial Institutions involving retail and institutional investors to international maritime assets in order to facilitate Islamic equity finance and investment by Islamic finance institutions involving retail and institutional investors. Shipping is a strong growth industry with about 84% of global trade carried by the international shipping industry. 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 study analyses the extent of Islamic investment and finance in international shipping. Our findings reveal that whilst Middle Eastern Islamic financial institutions have embraced financing of maritime assets, Malaysian institution have little or no exposure to international shipping. However, in terms of substance over form, Middle Eastern investors have structured debt ship-finance transactions to ensure fixed-income, rather than fully accept equity risk and returns. The significance is that Islamic equity finance, rather than structure debt finance, should increase the development of international shipping by Islamic financial institutions and investors.
format	Article
author	Abdullah, Adam Hassan, Rusni Kassim, Salina
author_facet	Abdullah, Adam Hassan, Rusni Kassim, Salina
author_sort	Abdullah, Adam
title	An assessment of Islamic financial institution and investor exposure to maritime assets
title_short	An assessment of Islamic financial institution and investor exposure to maritime assets
title_full	An assessment of Islamic financial institution and investor exposure to maritime assets
title_fullStr	An assessment of Islamic financial institution and investor exposure to maritime assets
title_full_unstemmed	An assessment of Islamic financial institution and investor exposure to maritime assets
title_sort	assessment of islamic financial institution and investor exposure to maritime assets
publisher	International Economic Society
publishDate	2017
url	http://irep.iium.edu.my/59887/ http://irep.iium.edu.my/59887/ http://irep.iium.edu.my/59887/1/Accepted%20Artilce%20%28IJEP%29.pdf http://irep.iium.edu.my/59887/2/IJEP%20acceptance%20letter%20%2821Sept17%29.pdf
first_indexed	2023-09-18T21:24:54Z
last_indexed	2023-09-18T21:24:54Z
_version_	1777412125829890048

An assessment of Islamic financial institution and investor exposure to maritime assets

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