Islamic finance refers to the means by which corporations in the Muslim world, including banks and other lending institutions, raise capital in accordance with Sharia, or Islamic law. Islamic art can be defined as visual arts embodying the preservation of Muslim's cultural heritage.
A sharia-compliant investment is an investment of goods and services governed by the requirement of Shariah law in accordance with Islamic principles and are considered to be a type of socially responsible investing. Shariah-compliant funds have many requirements that must be adhered to. Some of the requirements for a Shariah-compliant fund include the exclusion of investments which derive the majority of their income from the sale of alcohol, pork products, pornography, gambling, military equipment or weapons. Other characteristics of a Shariah-compliant fund include an appointed Shariah board, an annual Shariah audit and purifying certain prohibited types of income, such as interest, by donating them to a charity.
As per Deloitte’s Art & Finance Report 2017, Art usually exists as a tangible asset with an economic value and when subject to sharia screening, it can certainly make a good underlying asset for a financing and investment structure.
Deloitte ME Islamic Finance Knowledge Centre and Deloitte Art & Finance launched the world premier on Art and Islamic Finance and debated on the Integration of Art and Collectibles into the ever-popular Sharia-Compliant System.
Big Data has become a buzz phrase for many industries, and most recently, in the art world, providing new opportunities to analyze data and understand art market trends.
Big data refers to the dynamic, large and disparate volumes of data garnered from social media, internet-enabled devices (including smartphones and tablets), machine data, video and voice recordings, and the continued preservation and logging of structured and unstructured data being created by people, tools and machines.
There is an unparalled private and public data on artists and millions of artworks. The technical capacity to innovatively collect, aggregate, host and analytically process these vast amount of information can offer value-add to the risk assessment and investment decision process of a collector when buying art. Big Data can also help the arts and cultural sector create value by helping them to understand their audiences better, to measure the (public) value that it generates, to develop new business models and to learn from its creative experiments.
Pi-eX, CollectorIQ and LOT-Art.com discussed the benefits of big data and analytic in helping art collectors better manage liquidity, risk and volatility alongside Christie's and ArtTactic.
Blockchain can revolutionize the art industry by resolving questions of provenance, and improving transparency, copyright and ownership issues.
Blockchain, is a growing list of record, called blocks, which are linked using cryptography. Each block contains a cryptographic hash of the previous block, a timestamp, and a transaction data. In short, blockchain, like provenance, is a ledger, a list of transactions. However, unlike traditional provenance records and databases, blockchain information is decentralized. It’s open source where anyone can build on it and stores information without the need of a third party, reducing art market transactions. It includes hashes of related documents such as photographs, past appraisals, receipts, and restoration records that can be stored as metadata off-chain. It provides worldwide, real-time access to provenance documentation which helps speeds up art transactions such as insuring and borrowing against works. It creates a single point of access for currently disparate provenance documentation. Its storage of provenance makes it tamper-proof. It’s a low-friction, no-cost method for working artists to register work as it is produced. It enables the sharing of data on transactions while retaining anonymity for collectors.
Khalid Saad,CEO Bahrain Fintech Bay spoke on the emergence of Bahrain Fintech Bay which opened its doors in February 2018 and the creation of this complete ecosystem to drive the FinTech and blockchain industry in the MENA region. Khalid also explored the use of Blockchain to resolve questions of provenance, improving transparency and ownership issues. Khalid discussed with Nanne Dekking, Founder of Artory and Chairman of the Board at TEFAF on Artory’s collaboration with Christie’s on the registration of major art collection sale with secured Blockchain technology. Khalid also uncovered the recent collaboration between Verisart and Paddle 8 to launch P8Pass to bring Blockchain certification services to online auctions with Robert Norton, CEO at Verisart.
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