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, UNSPECIFIED
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Abstract
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.
Keywords : | Islamic Finance; Investment; International Shipping; Maritime Assets., UNSPECIFIED |
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Journal or Publication Title: | International Journal of Economic Perspectives |
Volume: | 11 |
Number: | 4 |
Item Type: | Article |
Subjects: | Ekonomi Islam |
Depositing User: | Users 15 not found. |
Date Deposited: | 27 Dec 2019 04:01 |
Last Modified: | 27 Dec 2019 04:01 |
URI: | https://repofeb.undip.ac.id/id/eprint/1008 |