Economy
Islamic Finance Vital to Nation’s Economic Growth—Report
By Dipo Olowookere
A report jointly released by Thomson Reuters and the Islamic Corporation for the Development of the Private Sector (ICD) has stressed the role Islamic finance plays in the sustaining the growth of economy of a country.
Thomson Reuters is the world’s leading provider of intelligent information for businesses and professionals, while ICD is the private sector development arm of the Islamic Development Bank (IDB).
The key findings of the fifth edition of the Islamic Finance Development Report and Indicator (IFDI) were released at the World Islamic Banking conference (WIBC) 2017 held in Bahrain.
The report studied key trends across five indicators used to measure the development of the $2.2 trillion Islamic finance industry which are: Quantitative Development, Knowledge, Governance, Corporate Social Responsibility and Awareness. It also compiled extensive statistics on the industry from 131 countries and highlighted the best-performing countries within each key area of performance.
The IFDI global average value, which acts as a barometer of the overall industry’s development, recovered to 9.9 in 2017 from 8.8 in 2016. This reflected improved performances in each of the five indicators. Malaysia, Bahrain and the UAE lead the IFDI country rankings for the fifth consecutive year, while the GCC remains the leading regional hub for the industry.
Countries in the Commonwealth of Independent States (CIS), Europe, East and West Africa saw notable improvements in their IFDI values, demonstrating the continued growth of Islamic finance in non-core markets.
The report also highlights how Islamic finance can help countries adapt to difficult economic conditions.
Nadim Najjar, Managing Director of Thomson Reuters in the Middle East and North Africa, said: “We have seen that the Islamic finance industry can serve as a strategic tool for policymakers for sustainable growth in order to cope with the aftermath of the economic slowdown that impacted markets such as the Middle East.
“Some markets had noteworthy improvements in their IFDI values when they have improved or introduced Islamic finance to fit their economic needs and attract investments like Morocco, Tunisia and Iraq.”
Khaled Al Aboodi, CEO of ICD, said: “Incorporating Islamic finance in different strategies can be seen in the many steps taken by governments across different IFDI indicators. This was noticed when some authorities intervened in Islamic social funds management, raised literacy in the industry among potential market players through formal education systems, organized roadshows targeting potential market players, or built a roadmap to plot development of the overall industry.”
Islamic finance sector recovers strength and assets continue to grow
Quantitative Development, which measures the performance of Islamic financial institutions and capital markets, advanced the most of the five indicators as a partial recovery in oil prices helped Islamic financial institutions and mutual funds regain strength.
Sukuk grew least of the Islamic finance sectors as some large sovereign issuers resorted to conventional bonds to ease the issuance process and lower costs.
Yet even here, sukuk showed signs of promise as new players came to market and Saudi Arabia emerged as a new sovereign sukuk giant.
There was also an increase in consolidation within the industry. Mergers were agreed between Islamic financial institutions in the GCC, Pakistan, Indonesia and Malaysia that are likely to strengthen their competitive edge.
The reversion to strength after last year’s oil price-led downturn saw total Islamic finance industry assets rise 7 percent to $2.2 trillion in 2016 and it is expected that assets will continue to rise, to $3.8 trillion by 2022.
Governments looking to improve Islamic finance education and literacy
The Knowledge indicator, which encompasses education and research, also edged higher in the latest report.
There were 677 Islamic finance education providers in 2016, of which 191 provided a total of 322 Islamic finance degrees. Governments in Bahrain, Malaysia and Indonesia made particular efforts to push Islamic finance education and literacy.
Governments improving regulatory regimes to encourage industry
As governments sought to push Islamic finance to help revive economies hit by the fall in oil prices, Governance gained the most of the five indicators. Each of its Regulation, Shariah Governance and Corporate Governance sub-indicators showed improvement.
The number of Shariah scholars increased, and several countries began to push for external Shariah scholars and centralized Shariah boards. There were 44 countries in 2016 with specific Islamic finance regulations. Many of these pushed for takaful regulations or tax concessions for sukuk.
Corporate social responsibility another strong gainer, though disclosure still too low
The indicator for Corporate Social Responsibility (CSR) was another strong gainer, with improvements in both performance and disclosure by Islamic financial institutions.
The total CSR funds disbursed by different Islamic financial intuitions increased 18 percent over the year, to $683 million.
The number of institutions reporting CSR activities also increased, but the global average for reporting disclosure remains low. Despite this, there are developments that will contribute to a stronger CSR in the future including interventions in managing zakat, waqf and charity by the governments of the UAE, Malaysia and Indonesia.
Conferences and seminars exploring mutual values of Islamic and ethical finance
As governments turned their attention towards Islamic social financing, a growing number of conferences and seminars explored the common ground between Islamic and ethical finance, particularly in Europe. This helped the Awareness indicator to edge higher, despite a slowdown in growth of news articles on the industry.
Other popular themes of conferences and seminars included socially responsible investing, sukuk, and microfinance. The rise in number of Islamic microfinance events was particularly noticeable in Africa.
By Adedapo Adesanya
Securities of four companies on the NASD Over-the-Counter (OTC) Securities Exchange lifted the platform by 0.41 per cent on Monday, April 28.
FrieslandCampina Wamco Nigeria Plc increased its price by N2.78 during the trading day to N38.15 per share from N35.37 per share, Lagos Building Investment Company (LBIC) Plc added 28 Kobo to its previous value of N2.80 per unit to close at N3.08 per unit, Geo-Fluids Plc gained 18 Kobo to settle at N1.98 per share versus N1.80 per share, and UBN Property Plc rose by 10 Kobo to N2.20 per unit compared with last Friday’s N2.10 per unit.
However, the price of Mass Telecom Innovation Plc was marginally down yesterday by 1 Kobo to 40 Kobo per share from 41 Kobo per share.
At the close of trades, the market capitalisation of the platform increased by N7.83 billion to N1.922 trillion from N1.914 trillion and the NASD Unlisted Security Index (NSI) grew by 13.36 points o 3,282.42 points from 3,269.06 points.
There was a 99.9 per cent slump in the volume of securities traded during the session to 692,885 units from 3.7 billion units, there was also a decline of 99.98 per cent in the value of transactions to N22.6 million from N9.5 billion, and but the number of deals went up by 90 per cent to 38 deals from 20 deals.
When the market closed for the trading session, Impresit Bakolori Plc remained the most traded stock by volume on a year-to-date basis with 533.9 million units worth N520.9 million, Geo-Fluids Plc occupied the second spot with 259.3 million units valued at N440.9 million, and the third spot was taken by Okitipupa Plc with 153.6 million units sold for N4.9 billion.
Okitipupa Plc remained the most traded stock by value on a year-to-date basis with 153.6 million valued at N4.9 billion, followed by FrieslandCampina Wamco Nigeria Plc with 16.2 million units sold for N620.6 million, and Impresit Bakolori Plc with 533.9 million units worth N520.9 million.
In online trading, speed is king. Below, the experts at Octa, a regulated and trusted broker since 2011, break down the aspects of trading where speed matters most and offer an accessible way to accelerate your trading progress.
The modern world revolves around speed and solutions that solve problems faster than their predecessors. Speed advantage determines success in many industries and areas of life: information delivery, financial transactions, manufacturing, sports, and many more. This is especially true about all things digital, particularly online trading, where delays are considered a serious red flag by the modern consumer.
Why modern trading is all about speed
For modern traders, the broker’s ability to provide efficient order execution, fast withdrawals, and timely customer service are the key requirements for building trust. Without speed, a broker can hardly expect to establish long-term client relationships. Moreover, in the financial sector, speed comes in many forms.
The e-brokerage industry entirely depends on high-speed data feeds and information transfers executed with millisecond precision. Retail traders who operate from their desktops or mobile devices find navigating the markets proportionately easier if they are fast enough where and when it counts.
In online trading, especially in scalping or intraday trading with lesser timeframes, a breakout, reversal, or reaction to a news release can happen in seconds. Delayed order execution, a stuttering trading platform, or suspended reaction due to incomplete information can easily turn a low-risk, high-probability trade into a risky venture with an uncertain outcome.
Where in trading speed makes the most difference
Traders emphasise the importance of strategy, but it is the execution that often separates a positive outcome from a negative one. Choosing the right price movement direction is useless unless you do it on time. Fast execution means less slippage, better prices, tighter spreads, and more control over your risks.
Another speed-related factor that determines a positive trading experience and is, therefore, highly valued by traders is withdrawal speed. Octa broker’s recent survey shows that the ability to withdraw their funds without hiccups is one of the main reasons traders choose one broker over another.
Octa broker uses its global reach to establish close cooperation with various payment providers and systems. This way, Octa offers some of the fastest withdrawals on the market while avoiding any hidden charges. All the broker’s fees are reflected in its terms and conditions and can be reviewed in advance.
CFDs: a perfect instrument for modern-day trading
Contracts for difference, or CFDs, are well-known for speed and flexibility. With CFDs, you’re not buying an asset or a futures contract with delivery obligations—you’re trading price movement, and that makes the entire transaction faster and more direct.
CFDs allow you to profit from upward and downward market movements without restrictions. You don’t have to waste time waiting for a market surge or borrowing from an exchange if you are going short, as is often the case with crypto trading. This flexibility is especially advantageous in fast-moving markets, where direction can reverse in seconds.
Another advantage of CFDs is tight spreads and direct market access, which means the prices you see are among the best available in the market. On top of that, your trades are executed without interference. This eliminates delays and improves your chances of getting filled at or near your intended price.
Last but not least, CFDs provide multiple leverage options, which, if used wisely, can significantly increase your potential, albeit at the cost of increased exposure. Leverage allows traders to capitalise on short bursts of volatility instead of waiting for a major directional move to turn a profit.
Conclusion
Modern trading is driven by speed, efficiency, and transparency. Brokers build trust by allowing traders to operate efficiently in a high-frequency environment and act on volatility without delay. By ensuring fast withdrawals and a transparent, clearly communicated fee structure, brokers facilitate a seamless trading journey for their clients, contributing to their success in a vibrant environment where speed reigns supreme.
Trading involves risks and may not be suitable for all investors. Use your expertise wisely and evaluate all associated risks before making an investment decision.
Octa is an international broker that has been providing online trading services worldwide since 2011. It offers commission-free access to financial markets and various services used by clients from 180 countries who have opened more than 52 million trading accounts. To help its clients reach their investment goals, Octa offers free educational webinars, articles, and analytical tools.
The company is involved in a comprehensive network of charitable and humanitarian initiatives, including the improvement of educational infrastructure and short-notice relief projects supporting local communities.
Since its foundation, Octa has won more than 100 awards, including the ‘Most Reliable Broker Global 2024’ award from Global Forex Awards and the ‘Best Mobile Trading Platform 2024’ award from Global Brand Magazine.
By Adedapo Adesanya
The Naira witnessed a 0.12 per cent or N1.96 depreciation against the US Dollar at the Nigerian Autonomous Foreign Exchange Market (NAFEX) on Monday, April 28, trading at N1,601.38/$1 compared with the N1,599.42/$1 it was transacted at the previous session, last Friday.
Similarly, the local currency depreciated against the Pound Sterling in the official market during the session by N56.21 to close at N2,186.65/£1, in contrast to the preceding session’s rate of N2,130.44/£1 and lost N29 Kobo on the Euro to sell for N1,818.82/€1 versus the previous trading day’s rate of N1,818.53/€1.
In the same vein, the domestic currency weakened against the Dollar in the black market yesterday by N5 to quote at N1,610/$1 compared with the preceding session’s value of N1,605/$1.
Market analysts have raise worries about the continued secondary effect of a trade war between the US and China on Nigeria and other nations’ economies.
For Nigeria, which is heavily dependent on crude oil for FX earnings, the impact of the beef between the two biggest economies is affecting prices, leading to weaker forex.
This is happening despite constant promise by the Central Bank of Nigeria (CBN) to continue propping up the local currency.
As for the cryptocurrency market, it was mixed on Monday amid signals from weak economic data just as rising tensions between India and Pakistan added to worries.
Amid macroeconomic uncertainty caused by the US-China trade tensions, the Dallas Fed Manufacturing Index, a typically little-noticed economic data point, plunged to -35.8 from -16.3 last month — making it the worst performance since COVID upended the world economy.
Hostilities between India and Pakistan might also have added to market jitters, with Pakistani Defense Minister Khawaja Muhammad Asif claiming that an Indian military incursion into Pakistan was imminent.
According to reports, last week 26 people were killed in a terrorist attack in Pahalgam, a popular tourist destination in Indian-controlled Kashmir. The two countries have exchanged fire since.
Ethereum (ETH) gained 0.6 per cent to settle at $1,815.97, Binance Coin (BNB) improved by 0.5 per cent to $609.82, and Bitcoin (BTC) rose by 0.1 per cent to end at $94,626.01, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) closed flat at $1.00 apiece.
However, Solana (SOL) dipped by 0.9 per cent to trade at $147.90, Cardano (ADA) slumped by 1.0 per cent to $0.7102, Dogecoin (DOGE) depreciated by 0.9 per cent to $0.1792, Litecoin (LTC) shrank by 0.5 per cent to $86.55, and Ripple (XRP) went down by 0.3 per cent to $2.28.
-
Feature/OPED5 years agoDavos was Different this year
-
Travel/Tourism9 years ago
Lagos Seals Western Lodge Hotel In Ikorodu
-
Showbiz2 years agoEstranged Lover Releases Videos of Empress Njamah Bathing
-
Banking7 years agoSort Codes of GTBank Branches in Nigeria
-
Economy2 years agoSubsidy Removal: CNG at N130 Per Litre Cheaper Than Petrol—IPMAN
-
Banking2 years agoFirst Bank Announces Planned Downtime
-
Sports2 years agoHighest Paid Nigerian Footballer – How Much Do Nigerian Footballers Earn
-
Technology4 years agoHow To Link Your MTN, Airtel, Glo, 9mobile Lines to NIN