Growth of Islamic funds stalls but investable assets increase

Sharia-sensitive investable assets in 2008 in the GCC and Asia touched $736 billion (Dh2.7 trillion) compared to $267 billion (Dh980 billion) in 2007, said the latest report by Ernst & Young.

"This translates into a potential annual revenue pool of $3.86 billion (Dh14 billion) for the Islamic asset management industry. Fund sizes however remain small, with over 50 per cent having assets under management of $20 million (Dh73.4 million) or less," the report said.

The third annual Ernst & Young Islamic Funds and Investments Report, released yesterday at the World Islamic Funds and Capital Markets Conference, also says 25 Islamic funds were liquidated in 2008 and first quarter 2009 while 18 were liquidated in all of 2006 and 2007.