When General Electric sold its plastics division in 2007, the most attractive buyer was not a European conglomerate, nor a major North American firm; it was the Riyadh-based group SABIC.
As Citigroup, then the world’s largest bank, began to buckle during the credit crisis of 2008, the first waves of relief came not from Washington or Wall Street, but from Gulf-based private and institutional investors.
As potential losses for Gulf investors mounted in 2009, family feuds, debt defaults, and controversies abounded and caused ripple effects throughout global markets. These developments both revealed challenges facing the region’s institutions and highlighted the central role Gulf capital had come to play in international finance.
The rise of capital from the Middle East and the growth of Islamic finance are changing the landscape of global markets. Unprecedented opportunities exist, but only for those with an understanding of the past, present, and probable future of Gulf Cooperation Council (GCC) countries, and the rapidly-evolving Islamic finance sector.
Gulf Capital and Islamic Finance: The Rise of the New Global Players (McGraw-Hill, 2010) takes a broad yet detailed view of the topic to look at the ways Gulf capital and Islamic finance have moved onto center stage in the world’s financial system. These pages vital answers to important questions, including:
- In what regions, asset classes, and sectors are Gulf-based institutions investing – and what are their objectives?
- What is the landscape of Gulf-based institutional investors?
- What makes Islamic finance “Islamic”?
- How can international firms tap into Gulf capital, and what does it take to serve Islamic finance customers?
- How is Shariah compliance affecting global capital flows?
- How is the rise of Gulf capital affecting financial markets—and how should it be regulated?
The book is tailored to be a core resource for professionals seeking to understand Gulf investments, Islamic finance, and their impact on global markets. In it, you’ll find in-depth knowledge on a host of vital topics, including:
- Background and context on the rise of Gulf capital and Islamic finance: their origins, evolution to date, and current landscape;
- Developments, trends, and the key strategic and socio-demographic shifts that give clues about their future evolution;
- Global implications of the rise of these new players—what their increased importance means for investors, bankers, regulators, and international markets; and
- The role of Gulf capital in an emerging, multi-polar financial order, how Gulf capital and Islamic finance are changing the landscape—and whether they should be seen as opportunities or threats.
Involvement with Gulf-based investors in international markets is already bearing financial and strategic fruit for savvy global firms, as well as influencing reform in the GCC region. The flow of capital in and out of Shariah-compliant instruments presents tremendous opportunities for those who understand—and are prepared to meet—the aspirations and needs of these investors. Gulf Capital and Islamic Finance provides these firms and professionals with in-depth knowledge that builds a solid platform for dealing with businesses in a region that is assuming a broader role in the global economy.
Advance Praise for Gulf Capital & Islamic Finance
“Aamir Rehman has written a lucid and well-researched guide to tapping capital in the Gulf. He is right that appreciating the underpinnings of Sharia-compliant finance is key to understanding the mindset of Muslim investors. This book is a ‘must read’ for anyone seriously interested in the Gulf area’s financing potential.”
- Samuel L. Hayes III, Jacob Schiff Professor of Investment Banking, Emeritus, Harvard Business School
“If you want to understand the meaning and implications of Islamic Finance, Aamir Rehman’s Gulf Capital & Islamic Finance is the one volume you need on your desk. Written primarily for financial and investment professionals with a need to understand more about the impact of Gulf investments and Islamic Finance on global markets, Rehman’s newest book makes this formerly esoteric topic accessible to anyone with an interest in the increasingly important energy rich Gulf countries.”
- Michael W. S. Ryan, PhD, Former Senior Vice President of the Middle East Institute & VP for Administration and Finance, Millennium Challenge Corporation
“A timely and useful book on the growing relevance to the global economy of Gulf capital and Islamic finance. Aamir Rehman’s deep knowledge, passion, and engagement with the topic have come together in a book that provides insight and practical advice on how to tap into a rapidly growing source of capital. This book will help institutions navigate their way successfully through the growing Islamic finance industry”
- Iqbal Khan, CEO, Fajr Capital, and former founding CEO, HSBC Amanah
“With the region’s increasing prominence in global capital markets, this timely piece is essential reading for anyone trying to gather a nuanced understanding of the landscape of Gulf capital and the fast-growing Islamic finance industry and the increased “shari‘a-affinity’ of its stakeholders. Brilliantly written, easy-to-read, Aamir Rehman has leveraged a luminous career as a corporate strategist for the Middle East to put together the comprehensive guide to Gulf capital and Islamic finance”
- S. Nazim Ali, Director, Islamic Finance Project, Harvard Law School
“Gulf Capital & Islamic Finance: The Rise of New Global Players is an in-depth fresh study on the subject. It is lucidly written, well documented and thoroughly investigated. Undoubtedly the book fills an important gap in the literature and is an indispensable source for both specialists and common readers.”
- Dr. Ibrahim M. Oweiss, Professor Emeritus, Georgetown University