The Shari’ah-compliant funds industry may prove to be the dark horse of Islamic finance as it gains ground outside the Muslim world. The Islamic funds industry may still be dwarfed by the likes of Takaful, Islamic banking and Sukuk but, after a troubled start, it is finally coming into its own. However, it will take a long time for the industry to recover from its tough upbringing.
In 2007 173 funds were launched, then in 2008 the recession set in and the Islamic funds industry suffered alongside ailing Western markets, with the number of funds launched falling to 78. In 2009, that figure plummeted to just 29. Islamic equity funds, which make up 10 per cent of the market, returned 10 per cent in 2010, compared with the 15 per cent return on the global equity index and significantly less than the 22 per cent average of 2009………………………………………..Full Article: Source