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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| Format: | Article |
| Language: | English English |
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International Economic Society
2017
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| Online Access: | 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 |
| _version_ | 1848785394962792448 |
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| author | Abdullah, Adam Hassan, Rusni Kassim, Salina |
| author_facet | Abdullah, Adam Hassan, Rusni Kassim, Salina |
| author_sort | Abdullah, Adam |
| building | IIUM Repository |
| collection | Online Access |
| 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. |
| first_indexed | 2025-11-14T16:52:27Z |
| format | Article |
| id | iium-59887 |
| institution | International Islamic University Malaysia |
| institution_category | Local University |
| language | English English |
| last_indexed | 2025-11-14T16:52:27Z |
| publishDate | 2017 |
| publisher | International Economic Society |
| recordtype | eprints |
| repository_type | Digital Repository |
| 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 |
| 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 |
| title | 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_short | 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 |
| topic | HE199 Freight (General) HG3368 Islamic Banking and Finance |
| 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 |