1. Issues & Suggestions for OIC Shari’ah Compliant Indexes Rushdi Siddiqui [email_address] Global Director Dow Jones Islamic Market Index Group

5. Where are we coming from? 1975-1990 Commercial Banking Syndications Islamic Conglomerates 1991-2000 Hard Asset Private Equity Fund Management Islamic Indexes 2001-2010 Structured Sukuk Mega Project Finance Mega Commercial Banks Market exposure: 20m Onset of Islamic Banks (Malaysia, UAE, etc.) Inefficient Command SOEs in Iran and Sudan, and Pakistan Market exposure: 100m Concentrations of Islamic Banks growing in GCC, Malaysia, Pakistan and Bangladesh Market Exposure: 250m Conversions, Islamic Windows & Subsidiaries of Mega Banks, Establishment of significant Islamic Banks in Non-Muslim states Muslim populated states getting interested Syria, Libya, Soviet bloc Timeline 1975-2010 Source: S. Farooq, BIBF

6. We are moving forward in IF M L R E PE VC Timeline/Products/Returns Activities Risk Reward IF IFI CF CFIs 300 plus years -Petro-liquidity & HNWs -Diversification -Shariah Scholars/research -Stress Tested/Time -Cross Sell CFPs IFPs S

8. First Islamic Funds Source: Failaka Jan-93 Saudi Arabia National Commercial Bank AlAhli US Trading Equity Jul-92 Saudi Arabia Al Rajhi Banking & Invest. Al Rajhi Local Share Jun-92 South Africa Futuregrowth AlBaraka Futuregrowth AlBaraka May-91 Singapore Mendaki Holdings Pte. Ltd. Mendaki Growth Fund Jun-86 USA Saturna Capital Amana Income Fund May-71 Malaysia Tabung Amanah Bakti Tabung Amanah Bakti May-68 Malaysia Mara Unit Trust Dana Al-Aiman Inception Location Fund Manager Fund Name

9. Growth in Assets in Equity Funds Source:Failaka

10. Growth in the Number of Islamic Equity Funds (excluding Asia) Source:Failaka

11. As regards Equity Funds Total Number of Islamic Equity Funds: 306 Source: Failaka

12. Nearly Full Range of Products Source:Failaka Hedge Fund 6-7 nearly there; 2 operational Balanced Easy to duplicate and 17 available Sector Funds 9 available Regional Funds (45 funds dealing in GCC Equities) ‏ Small Company (Al-Rajhi Global Small Cap Equity) Single Country (SABB Amanah Saudi Equity) Emerging Market 19 available (BRIC, South Africa, Turkey) ‏ European Equity 7 available US Equity 12 available Asian Equity 7 by non-Asian based managers Global Equity 27 available Fund categories

13. Its all Relative Total Mutual Funds in the World: 56,863 Total Islamic: 550 Total Islamic Equity: 320 (including balanced) ‏ Total Socially Responsible (SRI): 201 Source:Failaka

14. Assets Under Management: In Perspective Total Assets invested in Mutual Funds: US$ 17.8 Trillion Total Assets in SRI Mutual Funds: US$ 179 Billion Total Assets in Islamic Equity Funds: US $ 17.3 Billion (est.) ‏ Source:Failaka

16. Screening Process D/MC C+IB/MC AR/MC 95% Dow Jones World Business Descrip!ion Revenue Three Financial Ratios DJIM

17. DJIM Screening Primary Business Impermissible Income Financial ratios DJIM Universe

18. DJIM Regional Breakdown (2007) UK Cana Indonesia

19. DJIM Sector Breakdown (2007) Tech Indust Financial Credit & Impact on Financial

20. DJIM Performance (2007)

21. Compliant Sector Based Investing Islamic Equity Indexes Benchmark Indexes: Dow Jones Islamic Market Index ($17T) Sector Indexes: Industries (Broadest-Based) Oil & Gas Basic Matls Health Care Industrials Financials Technology Telecom Utilities Cons Goods Cons Svcs

25. Sector Weighting Breakdown (Q2 2008)  What does this mean? .69 10 -- 9 -- -- .21 -- .13 -- .37 .4 TECH 51 69 85 45 20 -- 49 -- 44 6 27 2 FIN -- 0 -- -- 4 7 3 7 1 4 6 3 UTI 5 2 10 20 13 21 3 6 6 20 6 16 Tele 2 1 2 -- 1 .49 .72 3 8 8 11 1 CS 1 -- -- -- 1 1 .91 4 1 2 .51 -- HCR .28 1 -- 1 14 8 5 4 10 4 20 35 CG 31 17 2 15 8 11 8 8 10 9 24 40 Ind 8 2 0 10 37 47 11 38 11 30 3 2 BM 2% 0% 0% 0% 2% 4% 19% 31% 9% 19% 1% .6% Oil/ Gas DJIM Kw DJ Kw T-50 DJ Bah Arbia 50 DJ Ind DJIM Ind DJW PK DJIM PK DJW Turk DJIM Turk DJ Malsia DJIM Malsia T-25 Sctrs

27. Muslim Country Islamic & Conventional Index Top 5 Components & Weightings (Q1 2008) 64% 37% 50% 32% Natl bank of Pk (4) Engro Chem Pk (10) Egreg DeMir Ve Celik (5) Turcas Petrol (4) J&S Co (4) Oil/Gas Dev (10) Turkiye Is Bankasi (6) Asya Katlim (6) Oil/Gas Dev (4) Pakistan Petroleum (10) Akbank (8) BIM Birlesik (8) Pak State Oil (5) Pakistan oilfields (10) Turkiye Garanti (9) Turkeye Petrol (22) MCB (15%) Dawood Hercules Chem (10%) Turkcell 9% Egreg DeMir Ve Celik (24%) DJW Pakistan DJIM Pakistan DJW Turkey DJIM Turkey

28. Muslim Country Islamic & Conventional Index Top 5 Components & Weightings (Q1 2008) 60% 29% 70% 50% Bank central Asia (6) Indosat (4) Malayan Banking (5) MISC (7) Bakrie Bros (7) Perusahaan Gas (6) Public Bank (5) KL Kepong (8) Astra Intl (7) Astra Intl (12) Bumiputra Comm Ltd (6) DiGi.com (9) Telekomunikasi (14) Telekomunikasi (23) IOI Corp (6) SimeDarby (19) Bumi Resources (16%) Bumi Resources (25%) SimeDarby (7%) IOI Corp (19%) DJ Indonesia DJIM Indonesia DJ Malaysia DJIM Malaysia Titans 25

29. Muslim Country Islamic & Conventional Index Top 5 Components & Weightings (Q1 2008) 39% 40% 36% 55% 45% Ren Services (7) Ithmaar Bank (6) Arab Bank (6) Comm Bank of Kuwait (6) Boubyan Petro (5) Oman Telecom (9) NBB (6) MTC (6) NIG (6) Gulf Cble/Elec (6) BM (9) GFH (11) Orascom Telecom (7) MTC (9) Agility (9) Raysut Cement (10) Batelco (12) Orascom Const (7) KFH (9) MTC (9) NBO (10%) Ahli United Bank (22%) Maroc Telecom (10%) NBK (10%) Investment Dar (10%) DJ MSM DJ Bahrain Stock Exchange DJ Arabia Titans 50 DJ Kuwait Titans 50 DJIM Kuwait

33. Billion Dollar Watermark Cross-Over Sukuk profile Eurobond Market* * Source: Frank J. Fabozzi, Handbook of Fixed Income Securities, 1991 Malaysia