The solutions include fiduciary deposits, property financing, equities; Islamic fixed income instruments (Sukuks), mutual funds (including Exchange-Traded Funds), third-party structured products and discretionary services. These solutions are now available to clients across the Private Bank’s booking centres in London, Geneva, Jersey and Dubai.
Islamic banking has become a significant part of the mainstream as the gap between conventional and Islamic banking solutions has narrowed substantially. Islamic banking assets, which are growing twice as fast as conventional banking assets, are expected to reach US$1.1 trillion globally in 2012, up 33% from 2010[1]. With the fast development of this industry, Muslim High Net worth Individuals (HNWIs) is increasingly expecting Shariah compliance in managing their wealth, making Islamic wealth management solutions a key market need.
Standard Chartered Private Bank’s Islamic Financial Solutions will help fill the industry gaps in the availability of Shariah compliant wealth management products and provide additional impetus for growth in the Islamic banking industry as it deepens the product set and brings into its folds a whole new customer segment.
“We have identified a latent demand among our existing and prospective private banking clients for Islamic private banking solutions. With our deep understanding of the region, strong international footprint across the world’s most dynamic markets and a wide experience in Islamic Banking, we are well-placed to meet this need. The launch of our Global Islamic Private Banking offering out of the region is testament to our strategic only innovative and unique in the region; it also aims to bridge the service gap between conventional and Islamic Banking to provide our clients with an exceptional banking experience,” Khalid El Gibaly, Regional Head of Consumer Banking, UAE and Middle East, Standard Chartered Bank said.
The Private Bank’s Islamic Financial Solutions will be delivered in collaboration with Standard Chartered Saadiq, the Bank’s Islamic banking arm which has over 18 years of experience in Islamic banking and finance, and has onshore presence in six markets. With the launch of this offering, Standard Chartered is now able to provide private banking clients a full spectrum of financial solutions – from those who require conventional to those who require Islamic banking.
“In the GCC alone, there are more than 500,000 High Net Worth Individuals with net investible assets of over USD 1.7 trillion[2] and this number is rapidly growing in light of relatively better economic conditions in the region compared to other parts of the world. However, this segment remains one of the most underdeveloped and underserved amongst all the Islamic banking client segments. Through our launch today, we aim to fulfil one of the pillars of our brand promise, ‘Here for good, Here for clients’ which aims to provide a comprehensive range of Islamic private banking offerings that will deliver the combination of Shariah compliance, reputable private banking solutions and international capabilities,” Commenting on the Islamic Private Banking potential, Stephen Richards Evans, Regional Head of Private Banking, Europe, Middle East, India, Africa and Americas, Standard Chartered said.
Standard Chartered Private Bank has fully trained and certified its team of Relationship Managers in Islamic banking, which is additionally supported by Islamic banking experts, to engage with clients on their private banking needs.
“Although Islamic banking solutions have become increasingly available, there are few viable Shariah compliant alternatives for HNWIs. Muslim HNWIs are restricted to the conventional offering of traditional private banks. There is a need to adopt a more holistic view towards wealth management for this segment. The launch of Islamic financial solutions for our private banking clients broadens the overall spectrum of wealth management solutions available to those seeking Shariah compliance. We plan to continue to expand the range of Shariah compliant solutions to address evolving client needs,” Wasim Akhtar Saifi, Group Head of Islamic Banking, Consumer Banking, Standard Chartered Saadiq said.
Standard Chartered has an independent Shariah Supervisory Committee comprising of Dr. Abdul Sattar Abu Ghuddah, Sheikh Nizam Yaqubi and Dr Mohammad Ali Elgari, which are three of the most renowned Shariah scholars in the field of Islamic banking and finance. All the Bank’s Islamic products are developed under the guidance of the Shariah Supervisory Committee and certified by them to ensure strict compliance to Shariah requirements.