' INCEIF 2012.' INCEIF 2014.' INCEIF 2015

International Centre for Education in Islamic Finance (INCEIF) (Company No.718736-K)

Islamic Finance and its Growing Presence in the

Global Property Market

Daud Vicary AbdullahPresident and CEO

6 February 2015

' INCEIF 2012.' INCEIF 2014.

1. How big is the Islamic finance industry?

2. What

3. What you need?

4. What

2

AGENDA

' INCEIF 2012.' INCEIF 2014.' INCEIF 2015International Centre for Education in Islamic Finance (INCEIF) (Company No.718736-K)

The Islamic finance industryCurrent scenario

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1

MIFC Report: Islamic finance and Economic Growth - Mutually Reinforcing

' INCEIF 2012.' INCEIF 2014.' INCEIF 2015International Centre for Education in Islamic Finance (INCEIF) (Company No.718736-K)

The Islamic finance industryIts performance

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1

MIFC Report: Islamic finance and Economic Growth - Mutually Reinforcing

Globally, Islamic finance is now a

USD2.1tln industry

Islamic banking and sukuk

market accounting for

95% of the industry’ assets

' INCEIF 2012.' INCEIF 2014.' INCEIF 2015International Centre for Education in Islamic Finance (INCEIF) (Company No.718736-K)

Raising capitalPopular platforms

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1

Crowd funding

Private equity

InfrastructureSukuk

' INCEIF 2012.' INCEIF 2014.

1. How big is the Islamic finance industry?

2. What

3. What you need?

4. What

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AGENDA

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2In South East AsiaGrowing economic activity

MIFC Report: Islamic finance and Economic Growth - Mutually Reinforcing

' INCEIF 2012.' INCEIF 2014.' INCEIF 2015International Centre for Education in Islamic Finance (INCEIF) (Company No.718736-K) 8

2In South East AsiaIslamic finance industry dominated by Malaysia

MIFC Report: Islamic finance and Economic Growth - Mutually Reinforcing

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2In South East AsiaSukuk issuances

MIFC Report: Islamic finance and Economic Growth - Mutually Reinforcing

• Notable development in Islamic project financing was the issuance of three perpetual sukuk in Malaysia towards end of 2014 – in transportation and real estate sectors.

• Amongst ASEAN countries, apart from plantation companies, Singapore witnesses two issuances by Sabana REIT – a Shariah-compliant investment vehicle in the country’s vibrant property market.

' INCEIF 2012.' INCEIF 2014.' INCEIF 2015International Centre for Education in Islamic Finance (INCEIF) (Company No.718736-K) 10

2In the GCCSukuk a major financing sourceGCC economies benefitted from growth of Islamic banking which is now a USD564.2bln industry in the region1

By economic sector, the main recipient of financing are the real estate (25.9%) and trade (9.6%)2

Sukuk issuances in the GCC serves to support mainly sovereign funding and infrastructure plans

Some of the biggest Islamic financing deals in 2014 were from the GCC and channeled to the aviation and real estate

1 KFH Research estimate 1H20142 Data for Kuwait as of 1Q2014 MIFC Report: Islamic finance and Economic Growth - Mutually Reinforcing

' INCEIF 2012.' INCEIF 2014.' INCEIF 2015International Centre for Education in Islamic Finance (INCEIF) (Company No.718736-K) 11

2Islamic financeA growing presence in Global property markets

• The Gatehouse JV with Sigma, a UK developer deal to provide equityfor new build of private rental homes across the UK kicking off inLiverpool and Manchester is the most interesting and innovativeexample of IF making a difference in the real economy outside of theMuslim majority countries.

• Also the recent Commercial Rental-Backed Security (CRBS) for aEuropean transaction ranks as a ground breaker.

' INCEIF 2012.' INCEIF 2014.

1. How big is the Islamic finance industry?

2. What

3. What you need?

4. What

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AGENDA

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Islamic financeHaving robust framework

Shariah / Legal governance frameworkS

Tax environmentT

Accounting standardsA

Regulatory environmentR

Standards, eg. human capital development and educationS

3

' INCEIF 2012.' INCEIF 2014.

1. How big is the Islamic finance industry?

2. What

3. What you need?

4. IF: The viable option

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AGENDA

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4Islamic finance (IF)Supporting financing needs

• In serving the real economy, the household sector have benefitted from the viability of Shariah compliant financing for needs such as home and property purchases.

• South East Asian (SEA) governments plan to invest heavily in infrastructure building and maintenance in the medium term increasing and diversifying sources of funding is key.

• On the role of IF, sukuk is likely to gain prominence as a source of infrastructure financing for SEA.

• Singapore real estate investors have tapped into both the sukuk market and Islamic financing facilities such as commodity Murabahah.

• In Saudi Arabia, the newly enforced 2012 Mortgage Law is expected to boost demand for home financing.

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Thank You

Daud Vicary AbdullahPresident & Chief Executive Officer

Tel: +603 7651 4141Email: dvicary@inceif.orgWebsite: www.inceif.org