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An investment appraisal of international maritime assets for Malaysian Islamic financial institutions - the case for equity finance

The purpose of this research is to investigate the overall investment performance of international maritime assets in order to facilitate Islamic equity finance and investment involving Malaysian Islamic finance institutions, retail and also institutional investors. Shipping is a strong growth indus...

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Main Authors: Abdullah, Adam, Hassan, Rusni, Kassim, Salina
Format: Article
Language:English
English
Published: International Islamic University Malaysia 2017
Subjects:
HG3368 Islamic Banking and Finance
Online Access:http://irep.iium.edu.my/59832/1/59832-an%20investment%20appraisal.pdf
http://irep.iium.edu.my/59832/7/59832_An%20investment%20appraisal%20of%20international%20_scopus.pdf
http://irep.iium.edu.my/59832/
http://journals.iium.edu.my/shajarah/index.php/shaj/issue/view/46
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spelling my.iium.irep.598322018-04-02T07:57:48Z http://irep.iium.edu.my/59832/ An investment appraisal of international maritime assets for Malaysian Islamic financial institutions - the case for equity finance Abdullah, Adam Hassan, Rusni Kassim, Salina HG3368 Islamic Banking and Finance The purpose of this research is to investigate the overall investment performance of international maritime assets in order to facilitate Islamic equity finance and investment involving Malaysian Islamic finance institutions, retail and also institutional investors. Shipping is a strong growth industry with about 84% of global trade carried by the international shipping industry. The problem is that Malaysian Islamic financial institutions have essentially no exposure and thus understanding of international shipping. However, shipping is a highly capital intensive industry and currently 75% of ship lending has been conducted by European banks and financed on a conventional basis. This research involves an investment analysis of a full population of historical data over a period of 20 years to evaluate maritime performance by adopting IRR, net yield and standard deviation measures of risk and return. We also develop a correlation matrix for maritime assets and compare returns to other real and financial investments. Our findings reveal that whilst earnings are volatile in comparison to capital market financial products, unlevered, tax-free returns on maritime assets are very attractive. The significance is that Islamic equity finance, rather than debt at the time-value-of-money should enable the development of international shipping in Malaysia. International Islamic University Malaysia 2017-11 Article REM application/pdf en http://irep.iium.edu.my/59832/1/59832-an%20investment%20appraisal.pdf application/pdf en http://irep.iium.edu.my/59832/7/59832_An%20investment%20appraisal%20of%20international%20_scopus.pdf Abdullah, Adam and Hassan, Rusni and Kassim, Salina (2017) An investment appraisal of international maritime assets for Malaysian Islamic financial institutions - the case for equity finance. Al-Shajarah, Special Issue: Islamic Banking and Finance. pp. 27-59. ISSN 1394-6870 http://journals.iium.edu.my/shajarah/index.php/shaj/issue/view/46
institution Universiti Islam Antarabangsa Malaysia
building IIUM Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider International Islamic University Malaysia
content_source IIUM Repository (IREP)
url_provider http://irep.iium.edu.my/
language English
English
topic HG3368 Islamic Banking and Finance
spellingShingle HG3368 Islamic Banking and Finance
Abdullah, Adam
Hassan, Rusni
Kassim, Salina
An investment appraisal of international maritime assets for Malaysian Islamic financial institutions - the case for equity finance
description The purpose of this research is to investigate the overall investment performance of international maritime assets in order to facilitate Islamic equity finance and investment involving Malaysian Islamic finance institutions, retail and also institutional investors. Shipping is a strong growth industry with about 84% of global trade carried by the international shipping industry. The problem is that Malaysian Islamic financial institutions have essentially no exposure and thus understanding of international shipping. However, shipping is a highly capital intensive industry and currently 75% of ship lending has been conducted by European banks and financed on a conventional basis. This research involves an investment analysis of a full population of historical data over a period of 20 years to evaluate maritime performance by adopting IRR, net yield and standard deviation measures of risk and return. We also develop a correlation matrix for maritime assets and compare returns to other real and financial investments. Our findings reveal that whilst earnings are volatile in comparison to capital market financial products, unlevered, tax-free returns on maritime assets are very attractive. The significance is that Islamic equity finance, rather than debt at the time-value-of-money should enable the development of international shipping in Malaysia.
format Article
author Abdullah, Adam
Hassan, Rusni
Kassim, Salina
author_facet Abdullah, Adam
Hassan, Rusni
Kassim, Salina
author_sort Abdullah, Adam
title An investment appraisal of international maritime assets for Malaysian Islamic financial institutions - the case for equity finance
title_short An investment appraisal of international maritime assets for Malaysian Islamic financial institutions - the case for equity finance
title_full An investment appraisal of international maritime assets for Malaysian Islamic financial institutions - the case for equity finance
title_fullStr An investment appraisal of international maritime assets for Malaysian Islamic financial institutions - the case for equity finance
title_full_unstemmed An investment appraisal of international maritime assets for Malaysian Islamic financial institutions - the case for equity finance
title_sort investment appraisal of international maritime assets for malaysian islamic financial institutions - the case for equity finance
publisher International Islamic University Malaysia
publishDate 2017
url http://irep.iium.edu.my/59832/1/59832-an%20investment%20appraisal.pdf
http://irep.iium.edu.my/59832/7/59832_An%20investment%20appraisal%20of%20international%20_scopus.pdf
http://irep.iium.edu.my/59832/
http://journals.iium.edu.my/shajarah/index.php/shaj/issue/view/46
_version_ 1643615672629985280
score 13.211869

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