MENA Asset Management Survey 2012 - National Bank of Abu Dhabi

Sharia Compliant Funds
Fund Flows
In terms of assets under management, Sharia-compliant funds (US$ 37.6 billion as of
September 30, 2012) make up only a small part of the global fund industry at the
moment, but this does not mean the industry is in bad shape. Rather, the opposite is the
case; the sector is showing, in general, a healthy growth pattern, with net inflows of
US$4.5 billion in 2012 as of September 30.
The asset mix of the net fund flows shows that Islamic investors are looking for safe
havens, since money market products enjoyed the majority of the net inflows (US$ 2.547
billion), followed by bond funds (US$ 1.055 billion), while equity funds received (US$
0.691 billion). Mixed-asset funds showed inflows of US$ 0.078 billion, while funds
investing in other asset classes had inflows of US$ 0.0597 billion and the assets under
management of funds of funds grew by US$ 0.0568 million.
Market Share per Asset Type by Net Flows in Shariah-Compliant Funds
(September 2012)
Equity
15%
Fixed Income
24%
Fund of Funds
1%
Money Market
57%
Others
1%
Mixed Assets
2%
Source: Lipper, a Thomson Reuters company
With US$ 1.371 billion, 31% of these flows came from the GCC. With regard to wealth
distribution in the region, it is no surprise that the majority of these flows came from
Saudi Arabia (US$ 1,329 million), followed by the United Arab Emirates (UAE) (US$ 209
196