Takaful Investment Portfolios: A Study of the Composition of Takaful Funds in the GCC and Malaysia

The Islamic finance sector has witnessed historic growth over the past decade. One of the most successful and fastest-growing segments has been the takaful, or Islamic insurance, industry, which is expected to grow at an average rate of 20 percent per annum, well into the future.

Despite the rapid growth of Islamic insurance and mounting interest among major players in both the Islamic and conventional financial industries, much about their internal workings remains veiled in mystery. Nowhere has this been more true than in the financial structures and investment activities.

Based on a groundbreaking research project begun in 2002, this book provides a clear, in-depth look at the financial structures in both the GCC and Malaysia, which together represent approximately 60 percent of the Islamic insurance industry.

Featuring a gold mine of new and novel research, Takaful Investment Portfolios covers:

• The history of the industry, as well as various takaful models and how they work
• Islamic insurance practices, highlighting differences between Shari'ah-compliant and conventional insurance
• Critical legal and regulatory aspects of insurance contracts under Islamic law in both the GCC and Malaysian markets
• Major asset classes comprising investment portfolios of shareholder funds, general funds, and family funds of takaful enterprises in GCC and Malaysia
• Actual versus desired investment portfolio composition of all three types of funds in both regions
• Differences between the GCC and Malaysian takaful investment portfolios of the three fund types
• Recent efforts to change the composition of takaful investment portfolios and the most likely areas for future investment
• Expert recommendations for regulatory authorities, and Islamic banks.

The first and only in-depth study of its kind, Takaful Investment Portfolios is an indispensable resource for those working within the takaful industry and other areas of Islamic finance, as well as those in the conventional insurance and finance industries.