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Sem 2 2019-2020 v2.docx Open with Assets Sukuk Outstandin Lakan Contribution S 4.1 11.7 10.3 266.1 704.8 540.2 Funds Assets 24,2 22.7 0.1 323.2 187.9

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Sem 2 2019-2020 v2.docx Open with Assets Sukuk Outstandin Lakan Contribution S 4.1 11.7 10.3 266.1 704.8 540.2 Funds Assets 24,2 22.7 0.1 323.2 187.9 0.3 617.6 927.1 550.9 28.2 42.39 25.1% Asia GCC MENA (ex GCC) Africa (ex North) Others Total 13.2 2.5 1.5 0.01 17.2 0.8% 47.1 1,571.3 16.5 530.4 13.1 61.5 76.7 2,190 3.5% 100% 27.7 Source: IFSB (2019) The global Islamic Financial Services Industry (IFSI) reached an overall total value of USD 2.190 trillion as of 2018. But its distribution over various financing schemes was narrow and uneven, as table above succinctly shows. Required: Based on the above table, it appears that Islamic banking dominates Islamic finance. Please state THREE main reasons to support your answer. (10 marks) (b) Why does Takaful remain a tiny element in the spread of Islamic finance? What can be done to improve the situation? Illustrate your answer. (7 marks) Page 9 / 10 + Sem 2 2019-2020 v2.docx Open with Assets Sukuk Outstandin Lakan Contribution S 4.1 11.7 10.3 266.1 704.8 540.2 Funds Assets 24,2 22.7 0.1 323.2 187.9 0.3 617.6 927.1 550.9 28.2 42.39 25.1% Asia GCC MENA (ex GCC) Africa (ex North) Others Total 13.2 2.5 1.5 0.01 17.2 0.8% 47.1 1,571.3 16.5 530.4 13.1 61.5 76.7 2,190 3.5% 100% 27.7 Source: IFSB (2019) The global Islamic Financial Services Industry (IFSI) reached an overall total value of USD 2.190 trillion as of 2018. But its distribution over various financing schemes was narrow and uneven, as table above succinctly shows. Required: Based on the above table, it appears that Islamic banking dominates Islamic finance. Please state THREE main reasons to support your answer. (10 marks) (b) Why does Takaful remain a tiny element in the spread of Islamic finance? What can be done to improve the situation? Illustrate your answer. (7 marks) Page 9 / 10 +

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