Special Report: Islamic Finance In Asia

MALAYSIAN DOMINANCE PUT TO THE TEST

By Anita Hawser

Long the leading force in Asia-Pacific’s Islamic finance industry, Malaysia is facing growing regional competition.

Anyone that does business or invests in Asia-Pacific will tell you that, as tempting as it may be, you should not look at the region as a homogenous whole.

Each country has its own political and economic climate, and regulators have a different take on what is permissible. The same is true of Islamic finance in Asia.

Although the continent is home to more than 60% of the world’s Muslim population, Islamic financial assets are largely confined to a single country, Malaysia, which has a smaller Muslim population than Indonesia but accounts for more than 60% of global sukuk issuance.

However, interest in Islamic financing is spreading across Southeast Asia, and it is not confined just to countries with large Muslim populations. Secular countries like Singapore, Hong Kong and Australia are modifying local laws and tax regulations to permit shariah-compliant investments.

Diverse Business Opportunities

The goals and business opportunities for Islamic financing vary greatly, depending on the jurisdiction, notes Afaq Khan, CEO, Islamic banking, at Standard Chartered Bank. He says, “Those countries with significant Muslim populations, like Malaysia, Indonesia and Brunei, have a different business opportunity, which is primarily retail and wealth management.”

"Countries with significant Muslim populations have a [unique] business opportunity"

"Global centers, like Hong Kong, will play a different part"– Afaq Khan, Standard Chartered

“Then there are other countries like Singapore and Hong Kong,” Khan adds. “They are global centers in their own right. All of these countries will play a different part, and the success of one will not necessarily result in the failure of the other.”

Khan, Standard Chartered: Success in one market is not failure in another

Hong Kong’s initial focus is on developing a wholesale Islamic capital market, including Islamic bonds, equities and funds. Although it does not have a large Muslim population, it does have international banks with relevant expertise in Islamic products.

“Developing an Islamic finance market in Hong Kong is just a natural extension of our existing role,” says a Hong Kong Monetary Authority (HKMA) spokesperson. “It will add to the breadth and depth of our financial market by widening the spectrum of financial products and services available in Hong Kong.”

It also ties into Hong Kong’s role as a gateway for investors into mainland China.

The development of an Islamic capital market in Hong Kong can help facilitate the intermediation of funds between mainland China and the Islamic finance world, including the Middle East, fitting in well with its role as a center for international financial intermediation, according to the spokesperson.

Hong Kong is well on its way to developing Islamic financial markets, as the HKMA spokesperson points out: “A local bank launched an Islamic fund, and there are four global sukuk listed on the Stock Exchange of Hong Kong.”

“We have also seen the start-up of an Islamic banking window and the introduction of Islamic treasury products based on a commodity murabahah structure,” the spokseperson adds.

Growth in Muslim Centers

Then there are the more populous Muslim countries within Asia-Pacific, such as India and Indonesia. Last December the Bombay Stock Exchange and Taqwaa Advisory and Shariah Investment Solutions (TASIS) launched a shariah-compliant stock index comprising 50 of the largest and most liquid shariah-compliant stocks. According to TASIS, it is the first time a “concerted effort has been made to track shariah-compliant stocks in India objectively.”

Indonesia, which has the largest Muslim population in Southeast Asia, is also ramping up its support for Islamic finance. In May, the Indonesia Stock Exchange launched the Indonesian Shariah Stock Index in an effort to attract investors, including those coming from the Middle East.

In January, Bank Indonesia announced as part of its policy direction for 2011 that it would “strengthen the competitiveness and resilience of rural banks and shariah banks.”

The central bank governor, Darmin Nasution, said the goal is to increase “professionalism and the quantity of manpower in the industry, provide robust and sound incentives, especially in the form of a conducive regulatory environment, and strengthen product innovation and infrastructure in Islamic banking industries.”

But Islamic banking assets are still relatively small in Indonesia, between 2% and 3% of total bank assets, according to some estimates.

Indonesian Competition

“Indonesia is very interesting, due to the large Muslim population; however, it will have challenges in becoming a regional player in Islamic banking because so far it has not been able to compete effectively with regional players such as Singapore and Hong Kong and Malaysia,” says Safdar Alam, head of Islamic structuring at J.P. Morgan in Bahrain.

Alam believes that over time Indonesia should be able to match if not surpass Malaysia’s progress. “However,” he says, “during that time, Malaysia will continue to make advances.”

In the meantime, Indonesia is working with Malaysia to benefit from its experience and history in the sector, according to Alam. “Many key banking groups in Malaysia typically have some ownership and investment in banks in Indonesia too,” he says. In part this is because Indonesia wants to quickly develop its domestic sector and stimulate cross-border business, both of which Malaysia has excelled at.

"Many [banks] in Malaysia typically have some ownership... in banks in Indonesia too"

"Indonesia is very interesting, due to the large Muslim population" – Safdar Alam, J.P. Morgan

Building a New Market Model

For other Asian countries, such as Singapore and Hong Kong, idea sharing, Alam says, is less likely. He notes: “In some ways, each center is a natural competitor of the other for international business.”

Bernardo Vizcaíno, editor of Opalesque Islamic Finance Intelligence, says certain countries are actually avoiding or ignoring the Malaysian Islamic finance model, which includes a country-level shariah board, locally-focused capital markets and best-practices laid out by Islamic scholars.

Reasons for building a new model vary, Vizcaíno says. “Either politically they wish to differentiate from Malaysia, or they are promoting a narrow Islamic product, as opposed to promoting Islamic finance overall, or they haven’t found the momentum yet.”

Determining Shariah Compliance

The HKMA says the same regulatory framework and supervisory approach apply to both conventional and Islamic banks in Hong Kong but, being a secular regulator, it is not in a position to establish a shariah advisory council to determine whether products are shariah-compliant or not.

“Instead, we would rely on the shariah committee of the relevant banks to ensure the shariah compliance of their products,” says the spokesperson. At the domestic level, whether other countries emulate the Malaysian model matters little, says Alam.

However, with respect to cross-border transactions, it becomes more relevant. “As a result of this there has been the gradual shifting of the kinds of products used in Malaysia so that they align more closely with other standards globally,” he explains.

“Non-Muslim centers that don’t have a domestic Islamic market, like Hong Kong and Singapore, need to serve the international Islamic market,” Alam says. “Indonesia, however, with its large Islamic market could support both a domestic market and the international Islamic market.”

Legal and Regulatory Reform

One thing they all have in common is the need to change local laws so Islamic finance is on an equal footing with conventional financial instruments.

In Hong Kong, for example, the Hong Kong Monetary Authority says it is working with the government on a legislative proposal to amend Hong Kong’s tax laws to level the playing field between sukuk and their conventional counterparts in terms of tax treatment.

The HKMA spokesperson says there is some flexibility in the existing legal setup that allows for sukuk origination out of Hong Kong.

Pending the passage of relevant legislative amendments, though, the government has set up an administrative mechanism for considering and approving applications for tax exemption and stamp duty remission on sukuk issuance and trading. It is handled on a case-by-case basis.

But changing local regulations to permit Islamic financing is only one piece of the puzzle, according to Zain Azra’i Abd Samad, senior associate at law firm Eversheds. The political will also has to be there for Islamic finance to start to flourish. “When we started Islamic finance in Malaysia, we always believed it was a viable model and that it should be given support from all aspects of government,” he explains.

Remarking on why Islamic finance has not grown to the same extent in more populous Muslim countries like Indonesia, Samad says: “It is more about how serious the administration is in pushing through things to make it happen.”

“I’m not saying that Malaysia has all the answers because it started earlier, but what these other countries should do is emulate the motivational factor,” Samad adds. “You need the backing of the public and private sector to make it happen.”

Benefits of Regional Growth

As interest in Islamic finance spreads across Asia, most observers believe it can only benefit the industry in general. New markets will produce not just greater volumes but also new and unique products. Alam of J.P. Morgan says: “Up until recently, the GCC (Gulf Cooperation Council) was the only meaningful market, with strong competition with the countries within the GCC.”

The development of the new financial centers in Asia focusing on Islamic finance will have two main effects, says Alam. “Firstly, Islamic finance will have two powerhouse regions, Asia-Pacific as well as the Middle East,” Alam notes. “And secondly, the countries within Asia will be subject to stronger regional competition among themselves.”

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The Top 10 Best Franchises in Islamic Finance and Banking

Abstract: In this edition of Global Islamic Finance Magazine we will be looking at the best global franchising opportunities in Islamic finance and banking which are essential reading for any investor, professional or entrepreneur. There are many Islamic financial franchising opportunities around the world. In this article GIF Magazine gives you a comprehensive insight into the various franchising opportunities that the Islamic finance sector provides. We will also look closely at the principles of Shariah in dealing with franchises, as well as presenting the best 10 franchising opportunities in the Islamic finance sector. So if you are an investor who is eager to know which industries hold the most lucrative opportunities in Islamic finance and banking, or you are a professional wanting to investigate the ways in which to enter the industry through franchises then look no further. GIF Magazine will provide you with a comprehensive insight leaving you fully equipped with all the answers you may need. Islamic finance is growing at an unprecedented rate, which means more opportunities will be coming up across the various sectors of Islamic finance and this article will put you in a position to invest your time and money in something really worthwhile.   Keywords: Franchises, Islamic Finance, Islamic Banking, Sukuk, Takaful, Shariah principles, Shariah law, opportunities, investments, deals    Note: To see all charts & figures you need to log in to hard copy of September 2011 issue. Thank you     An Introduction to Franchises in Islamic Finance Sectors   The Islamic finance sector is growing at a phenomenal rate. Its diverse expansion is providing investors with lucrative opportunities to tap into franchise businesses across the various sectors of Islamic finance. It is important first to establish the main purpose of a franchise, which is the practice of using another firm’s successful model of business. The franchise works as an investment model whereby the owner of the franchise has a direct stake in the business.   The most profitable businesses exhibiting success under franchises are those that have an excellent record of profitability as well as those that can easily replicate Islamic financial services and products successfully. Some of the key sectors for Islamic financial franchises are outlined in Figure 1.      Figure 1: Key Franchising Sectors in Islamic Finance   TAKAFUL SUKUK INFRASTRUCTURAL DEVELOPMENT ISLAMIC BANKING HALAL BRAND SECTOR     It is important that any franchise adheres to Shariah principles, which are governed by the Shariah regulatory body of the country. There are many opportunities worldwide for franchise businesses in the areas of Takaful, Sukuk, infrastructural development, Islamic banking and the very popular Halal brand sector, which runs chains of Halal foods under Islamic finance instruments. Major Islamic financial hubs, such as those found in the Middle East, Asia and Europe, are tapping into Islamic franchising opportunities around the world and collaborating on a united front in order to drive the Islamic financial industry forward. Every investor or entrepreneur wishing to start up a franchise must adhere to the principles of Shariah. Figure 2 explains the various principles that an individual has to follow when dealing with any Islamic financial institution, project or investment, which also applies to any franchise.     Figure 2: Principles of Shariah as a Guideline for Franchises Prohibition of Riba (interest) and uncertainty Profit sharing/Risk sharing Prohibition of forbidden assets Existence of underlying assets   Once you have acquainted yourself with the Shariah principles necessary in building up your franchise, then you can look into the various fully fledged Islamic financial opportunities for franchises around the world.   The Takaful Sector Providing Key Franchising Opportunities   The Takaful Islamic insurance sector is doing increasingly well all over the globe with companies opening up their services to cater for Shariah compliant insurance products and services. These Takaful products and services have provided the basis for all subsequent franchise establishments. Recently the Islamic financial hub of Dubai exhibited a key investment in a lucrative franchising deal. The leading Dubai based company Dubai SME and Noor Takaful launched a partnership to attract more UAE national entrepreneurs into the insurance industry, offering them flexible business start-up options. Both Dubai SME and Noor Takaful signed a memorandum of understanding (MOU) in order to offer franchises to UAE nationals so that they could sell Noor Takaful branded products right across the United Arab Emirates. Entrepreneurs were also encouraged to participate in the franchising scheme of Noor Takaful products and were allowed to work under three franchise arrangements provided by the company. Outlined in Figure 3 are the three options open to entrepreneurs who wish to own a franchise selling Noor Takaful Products.   Figure 3: Three Options for Noor Takaful Franchises   ·         Become a home-based agent using the Intilaq license of the Department of Economic Development ·         Work as a business start-up in the Business Incubation Centre at Dubai SME ·         Work as a full-fledged business operating independently.   Source: CPI Financial This lucrative franchising deal, with the collaboration of Noor Takaful and Dubai SME, was announced in 2011 and can provide entrepreneurs, particularly first time investors, with an excellent opportunity to join the franchise business. Dubai SME has marketed Noor Takaful products in order to spur on the success of the franchises across the United Arab Emirates. HE Abdul Basit Al Janahi, CEO of Dubai SME said, “Dubai SME has an expanding partnership network, which is a strong platform to create synergies and source competitive services and solutions for business growth. We are delighted to have Noor Takaful among our partners. The partnership also marks the first strategic initiative of Dubai SME to promote home-based businesses to generate substantial income and create opportunities for UAE nationals in new economic sectors.” In addition Noor Takaful will support all interested franchise entrepreneurs by providing the relevant business information, including the income potential and the key responsibilities of each franchise. This provides great scope for first time entrepreneurs who want to invest in a lucrative and reliable Islamic financial franchise, especially as the Takaful business is a growing sector and it is therefore a good time to invest. Dr. Ahmed Al Janahi, Managing Director of Noor Takaful said, “Noor Takaful is pleased to be entering into this strategic partnership with Dubai SME. This will be the first time a franchising concept within the insurance industry will be available in the region. We expect this relationship to raise awareness of Takaful, and to support entrepreneurial Emirate men and women in making informed decisions regarding their business requirements.” He further added that, “This partnership offers us the opportunity to continue to develop our presence in the small and medium business sector, and positions us as a reliable and trusted insurance partner for thriving young entrepreneurs.” Another key opportunity for the Takaful franchise sector was presented by UAE based Methaq Takaful, who signed an MOU with United National Bank in order to fund a motor vehicle insurance scheme. Methaq Takaful insurance has advanced remarkably in the Takaful business, and has built up a solid number of franchise customers in addition to key sponsorship and partners. It is believed that around 60 per cent of the insurance business is generated from motor insurance, followed by medical insurance at 20 per cent and the remaining 20 per cent from other insurance businesses in the UAE. Competition in the insurance industry has increased significantly in recent years and Methaq is well positioned, with its efficient system capitalisingon the emerging franchise opportunities. Methaq Takaful Insurance Company's vision is to offer general insurance services to corporate and individual customers, which will be delivered through the multiple distribution channels it has established. Methaq offers over 30 general insurance products as part of the phased roll-out of the product range and service offerings. In future Methaq plans to introduce new and innovative products which will be part of the company's commitment and drive to introduce operational excellence and best use of technology within the Takaful sector. This company therefore has many potential opportunities, with sound connections for building up a franchise. UNB CEO Mohammad Nasr Abdeen said that, “This MOU is within UNB's strategy to provide a wide range of financial solutions to the customers and a reaffirmation of its core value of being the bank that cares. The introduction of this service complements the various products that the bank provides, benefiting a very large customer base.” Methaq Takaful Managing Director Abdullah Al Maamarri further added “We are proud to tie up with Union National Bank, giving added value to our customers.” (Methaq Takaful Insurance). Sukuk Providing a Gateway of Opportunity for Franchises Sukuk Islamic bonds are doing unprecedently well in the Islamic finance industry and are becoming a global commodity as many countries around the world tap into the various opportunities that Sukuk provides. One key opportunity is the franchising of Sukuk Islamic bond companies, products and services. It is a lucrative market to investigate with huge potential and is a growing, diverse franchise sector, with more global investors from around the world getting involved daily. Barclays, the leading conventional bank, launched Barclays Capital or BarCap, as it is often known, and is doing increasingly well in Sukuk Islamic bonds franchising. Barclays Capital is renowned as a leading franchise for Sukuk and has already launched one of the three largest Sukuk ever issued to date. This positions them at the top of the league table in Sukuk franchising, setting a benchmark for others to surpass. The three lucrative Sukuk deals are outlined in Figure 4. Figure 4: The big three: BarCap’s world-beating sukuk PCFC (Dubai Ports Customs and Free Zone Corporation) - US$3.5 billion January 2006 AK. Here there was innovation together with our partner, Dubai Islamic Bank, to come up with what was essentially an acquisition structure that was financed in Sukuk format. It was a pre-IPO (Initial Public Offering) Sukuk, which is the first of its kind. If an IPO occurred in the underlying company related to the borrower, sukuk holders would receive shares in that IPO on a mandatory basis, which had never been done before. Nakheel Properties – US$3.52 billion December 2006 AK. This is currently the largest sukuk ever. We refined the pre-IPO structure to allow investors to have an option of whether or not to receive the shares upon an IPO. In the PCFC structure, it was mandatory, i.e. if the IPO occurred, your sukuk would be partly redeemed in shares. But in the Nakheel sukuk, investors could choose whether to receive shares or have the sukuk redeemed at maturity. Aldar Properties – US$2.53 billion February 2007 AK. Aldar was a listed company, unlike Nakheel and PCFC which were unlisted. For this reason the Aldar Properties sukuk were fully convertible into shares of Aldar, subject to certain criteria being met. Source: Business Management Dubai Islamic Bank is another key player who has provided great opportunities in the Sukuk franchising sector. Dubai Islamic Bank was recently assigned an ‘A’ rating for its strong franchise and liquidity position within the sector. Fitch expects DIB's focus on its retail operations to result in higher margins and further stability in earnings. In issuing its rating, Fitch added that it considers DIB's funding profile to be a rating strength, with customer deposits providing the bulk of its funding needs. Fitch said that given its franchise, DIB attracts a large proportion of its deposits from the retail segment, ensuring a low-cost and stable deposit base and therefore a satisfactory liquidity position. Commenting on the Fitch rating, Abdulla Al Hamli, Chief Executive Officer, Dubai Islamic Bank, said “Over the last few years DIB has focused on an agenda of diversification and managed growth which has further strengthened its strong commercial Islamic banking franchise, offering a full range of retail and corporate banking products and services. This has contributed in maintaining healthy liquidity largely funded by low cost stable retail customer deposits, strong capital ratio, growth in core revenue and significant increase in retail customer base.” (Al Sukuk). Dubai Islamic Bank gives plenty of opportunities for investing in franchises to sell their products and services efficiently with global scope for profitability. Along with Dubai Islamic Bank and BarCap’s reign of Sukuk franchise, many other fully fledged and Islamic windows offer the opportunity to franchise in Sukuk as it has developed into an increasingly popular area in great demand from customers and investors around the world. Sukuk is a global commodity in which any investor can become involved through the country of their choice. However the most lucrative Islamic financial hubs remain in the Middle East and Malaysia - the two predominant countries providing Sukuk and other Islamic financial instruments. Infrastructure Based Islamic Finance Franchise Development Opportunities Infrastructure growth remains a lucrative investment for project financing, especially through Islamic financial instruments. In countries such as the Middle East the infrastructure sector is a prime place for investments from all around the world. There are some specialised banks, particularly in Malaysia, that deal with infrastructure based Islamic finance franchising. When dealing with this type of franchise it is beneficial to have prior experience of the infrastructure market and relevant knowledge of managing an infrastructure based franchise through Islamic financing. CIMB Bank Berhad Malaysia has its own partners for infrastructural based Islamic financial franchising called CAPASIA Islamic Infrastructure Fund. Badlisyah Abdul Ghani, Executive Director and Chief Executive Office, works on the management and overseeing of the overall Islamic banking and finance franchise of CIMB Group known as CIMB Islamic. His areas of responsibility cut across all legal entities within the Group since CIMB Islamic operates as a parallel franchise, leveraging on the Groups’ infrastructure and network both locally and globally.  CIMB have opportunities to invest in infrastructure and have been doing well in the global Islamic financial arena. The infrastructure sector is a niche sector for the Islamic financial industry and therefore opportunities should be looked into with the collaboration of a bank or reliable Islamic financial institution. Islamic Banking Spearheading Franchises There are many fully fledged Islamic banks, in addition to Islamic windows through conventional banks, which have opened up worldwide. These banks often provide services which are lucratively beneficial to starting up a franchise. Often investors are keen to look into reliable forms of franchises and find that opportunities with Islamic banks fulfil their criteria for a profitable opportunity. One such reliable franchising bank is HSBC Amanah, which has branches across the world, including the United Kingdom. HSBC Amanah offer products and services for Takaful and Sukuk in addition to a range of Shariah compliant services which can easily be developed in the franchising sector. Dubai Islamic Bank also has opportunities for Takaful and Sukuk franchising of their products, which are open to UAE nationals and can provide significant profitability as well as a stable environment for business. The Islamic Bank of Asia has global branches in the Middle East, Singapore and Asia and offers the opportunity of franchising their products and services in a totally Shariah compliant manner. The Islamic Bank of Asia recently appointed a new Chief Executive Officer, Toby O’Connor, displaying its commitment to expand Islamic banking franchising with the expertise of key professionals. CIMB Malaysia also has vast opportunities for the franchising of Sukuk, which is offered through the bank itself, and many investors can tap into this lucrative sector. Another bank which has progressed in developing and providing franchising opportunities for Shariah-compliant products and services is Jordan Islamic Bank. It offers franchising options for products such as Sukuk and Takaful as well as investment funds to help with the financing of Shariah compliancy. The bank provides its banking, financing and investment services through 59 branches and 12 cash offices in different locations in the country, as well as through the bonded office. The bank also offers services through 80 ATMs all over the country. The Saudi Arabian banking sector has shown significant growth in opportunities for franchising, particularly Saudi based Al Rahji Bank. Al Rahji bank has developed a strong franchising network and the Saudi banking franchise currently consists of 22 commercial banks, 12 local banks and 10 branches from foreign banks. These banks are outlined in Figure 5. Figure 5: Saudi Franchising Banks ·         National Commercial Bank ·         Samba Financial Group ·         Al Rajhi Bank ·         Riyad Bank ·         Banque Saudi Fransi ·         Saudi British Bank ·         Arab National Bank ·         Saudi Hollandi Bank ·         Saudi Investment Bank ·         Bank Al Jazira ·         Bank Al Bilad ·         Al Inma Bank Source: Gulf Base Figure 6: Franchise banks around the world ·         Emirates Bank ·         Gulf International Bank ·         National Bank of Kuwait ·         Bank Muscat ·         BNP Paribas ·         Deutsche Bank Source: Gulf Base The Halal Brand Paving the Way for Islamic Finance Franchising The Halal brand of food chains and restaurants around the world has been increasingly establishing opportunities for franchising through Islamic finance. Many Halal restaurant franchises have been set up with funding from Islamic banks around the world, paving the way for the use of Shariah compliant instruments in dealing with the lucrative business opportunities developed by the Halal brand. Al Islami has made significant progress in advancing the franchising of the Halal brand and has plans to expand to the UK and France. Al Islami first entered the European market in 2007 through a deal with UK food distributor 3663 First for Foodservice. The joint venture supplies meat products to the food industry, predominantly in the UK and France. Saleh Abdullah Lootah said “We’ll be launching in the UK and France shortly; either the end of 2010, or early 2011. We’ll be offering the chain as a franchise… I think the French deal will be closing very soon.” Mohamed El-Fatatry, founder of integrated marketing agency, Muxlim, says the Muslim consumer is predicted to account for 30% of the world’s population by 2025. “Halal food brands need to learn from Islamic banks,” says El Fatatry. “These banks are taking Halal mainstream by highlighting that Islamic banking is no different from mainstream banking, apart from having new ethical values.” There will be further scope for many investors to tap into unique and innovative Halal branding for franchising through Islamic finance. The Top 10 Best Franchises in Islamic Finance and Banking So, after our analysis of the best franchising opportunities in Islamic finance what are the top 10 best banks or firms for franchises in Islamic finance and banking? Top 10 Franchises in Islamic Finance and Banking 1.      BarCap Barclays Capital- Franchises in Sukuk 2.      Noor Takaful- For products and services franchising Takaful 3.      Dubai SME- Company to distribute and promote Takaful products to franchises 4.      Dubai Islamic Bank- Offering numerous franchising opportunities in Sukuk, Takaful and banking products 5.      HSBC Amanah- Franchise for global banking products/services 6.      CIMB Islamic Bank- Banking division franchises and products/services 7.      Methaq Takaful- Takaful provider for franchising Takaful products and services 8.      Islamic Bank of Asia- Offering lucrative franchising of products/services 9.      Al Rahji Bank- Saudi based franchising of banking products 10. Jordan Islamic Bank- Winner of many awards for franchising in banking divisions Global Islamic Finance Magazine has provided you with information on the top 10 franchising firms and banks for all your Shariah compliant franchising needs. In addition we have explained the Shariah compliant principles of Islamic finance which will form the foundation for the success of your franchise. There are numerous opportunities with prestigious Islamic financial companies around the world. However, the sector which proves to have the majority of opportunities is the Takaful insurance sector, which is the most successful in franchising Islamic insurance products and services. www.globalislamicfinancemagazine.com