Opportunities In Islamic Markets Is Topic of BM&FBOVESPA Conference

Investment opportunities in Islamic markets, basic concepts of Islamic finance and the importance of regulator agencies in developing these markets were among the main topics of the fifth edition of “The Islamic World’s Financial and Capital Markets: Opportunities and Challenges.” Brazil’s Securities and Exchange Commission (CVM) and the Brazilian Securities, Commodities and Futures Exchange (BM&FBOVESPA) sponsored the conference, which took place on December 8th.

In his opening remarks, CVM Director, Sergio Weguelin, highlighted the importance of establishing a dialogue between market participants with the goal of bringing our two different systems close together. “These are two financial cultures that have much to offer to each other. (Islamic finance) has grown 15% annually, according to IOSCO (International Organization of Securities Commissions,)” he said. Weguelin added that “a larger incorporation by the traditional financial system of concepts that guide Islamic practices, such as the requirement to share risks, would have minimized the abuses that led to the subprime-mortgage crisis.”

BM&FBOVESPA’s International Director, João Lauro Amaral, highlighted the growth potential pf this market in his presentation. “Today the Exchange only has 30 non-resident investment accounts from the Middle East or other Islamic countries, mostly from the United Arab Emirates, which shows the potential we have for developing the growth between our markets,” he said, referring to the participation of Islamic investors in emerging markets such as Brazil.

Banco ABC Brasil S.A.’s International Department Director, Angela Martins, explained principles and characteristics of Islamic finance, such as the concept of Sukuk – “a certificate issued under Islamic law, backed by a contract accepted by Shariah law,” she said. She also explained that money in the Muslim world is not viewed as a commodity, but “as means to add value, without which one would not be able to generate wealth,” she said.

The Vice-President of Global Capital Markets at HSBC in New York, Alexei Remizov, highlighted the importance of the Islamic finance industry in the Persian Gulf countries. Nik Ramlah Mahmood and Kris Azman Abdullah, Directors at Malaysia’s financial regulator agency, discussed Islamic capital markets in Malaysia, and Anthony Saint, with London’s Gatehouse Bank, discussed operations of Islamic banks in the U.K.


Click below on the links for Conference presentations:


 Uma introdução ao mercado financeiro islâmico: Origem, Atividades e Produtos (Portuguese Only)

 The Asian Market: Malaysia’s Experience

 Islamic Finance in a Non-Islamic Country

 Islamic Finance and Sukuk Market Review

 Islamic Finance: Legal, tax and accounting challenges

 Malaysia: Opportunities in Islamic Finance