The Human Capital Challenge Shaping The Future 2015

38RedefiningIslamic FinanceKnowledge

30Innovation InIslamic Finance

20RadicalRethinking ofIslamic Finance

09Human CapitalOutlook:Challenges Ahead

THE HUMAN CAPITAL CHALLENGE: SHAPING THE FUTURE www.simplyshariahc.com

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ACKNOWLEDGEMENT

We would like to thank the Report authors for their guidance,knowledge and thought leadership; our generous sponsors, whohave made the report a reality and Eudaimonia Communicationsand Red Chilli Design for committing to the bigger picture anddriving us to the finish line. We are grateful to the World IslamicBanking Conference (WIBC) for offering us a platform to examinethe human capital challenges we face as an industry. And, finally,we offer our warmest appreciation to students everywhere andespecially members of the Islamic Finance Ethics Society (IFES),who are the bright innovators and activists of the future – it is forthem that we hope to develop a more visible, beneficial andimpactful industry.

DISCLAIMER

The views and opinions expressed in this publication are those ofthe contributing authors. While every effort has been made toensure that the information in this document is accurate, neitherSimply Sharia Human Capital nor its affiliates and partners(including Eudaimonia Communications) accept liability for anyerrors, omissions or misleading statements, and no warranty isgiven or responsibility accepted as to the standing of any individual,firm, company or other organisation mentioned.

© Simply Sharia Human Capital Copyright 2015 - All rights reserved.

Any enquiries regarding this material should be sent [email protected] or telephone +44 (0)20 8945 3786.

05Introduction

Table of Contents

03THE HUM

AN CAPITAL CHALLENGE: SHAPING THE FUTURE www.simplyshariahc.com

07SSHCMessage

14The Real SkillsGap

16HumanResources

18ICD TalentDevelopmentProgramme

22IslamicEconomy

27Millennials: My Perspective

28Empower Women, Empower Islamic Finance

34The NewFrontier

36Islamic FinanceMarketing

40Islamic FinanceEducation

42Raising The Bar

44Sharia Scholars

46IF TalentDevelopmentGoals: Graphs

48Goals

32Big Data, BigOpportunities

24Leadership

12GraduateOpportunities

50SSHCProfile

10Islamic FinanceRecruitment

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IntroductionThe necessity for the Islamic financial services industry toexpand and develop its human capital resources, ranks ashigh in priority as resolution of certain of the technical marketchallenges that practitioners continue to address.

Our human capital pool is amongst the most valuablecomponents of our industry's asset base and in recent yearsthere has, rightly, been a market focus on the developmentand provision of education, training and academic andprofessional qualification, that is both specific and relevant toIslamic finance.

Supporting the aspirations of our new entrants, whilstretaining and developing the knowledge and skill sets of theexisting human resources community, as the global footprintof our market evolves and expands, has been a prominentfeature of our industry agenda.

From the UK's own perspective, Islamic finance education,training and qualifications were a core component of theIslamic Finance Task Force convened by the Britishgovernment in 2013. Similarly, promotion of the UK’sexcellence in professional training and qualifications for globalIslamic financial market practitioners is an important output forTheCityUK's Islamic Finance Market Advisory Group.

However, as we move towards a period during which marketcommentators expect further, significant growth for Shariacompliant financial services, the organisations and institutionsthat are central to steering and shaping our industryarchitecture must debate and reflect now on potential, futurerequirement. Given the high priority of implementing astrategy for the ongoing build of human capital resources thatis current and relevant to the needs of the wider market, it'sinstitutions and it's consumers, most informed observersconsider that success is ultimately dependent upon it being acollaborative approach, in as far as it is practicable andpossible - that is shared by the industry's stakeholders.

In producing The Human Capital Challenge: Shaping theFuture, Simply Sharia HC has called upon leaders fromacross the educational and industry spectrum of globalIslamic finance to provide perspective. Not only have theybeen tasked to explore the historical and current challengesthat the industry faces, in particular they will offer their insightas to how we might best develop our talented human capitalpool, so that it remains equal to the challenges ahead asSharia compliant financial practice continues on its projectedgrowth trajectory.

Stella Cox has worked as a practitioner within the Islamicfinancial marketplace for almost thirty years. A Fellow ofthe Institute of Islamic Banking and Insurance in the UK,Stella is Chair of TheCityUK’s Islamic Finance MarketAdvisory Group and was a non-ministerial member of theIslamic Finance Task Force - set up by the UK Governmentto support the World Islamic Economic Forum, hosted byLondon in 2013, and the announcement of the inauguralUK sovereign Sukuk issuance. In 2008 Stella wasrecognised with the award for ‘Outstanding Contribution toIslamic Finance in the UK.’

Founded in 1998 and headquartered in central London,with presence in the Middle East, DDCAP is majorityowned and controlled by IPGL, the most significantshareholder in ICAP plc. An intermediary in the IslamicFinancial Services Industry, providing structuringsupport, trade execution and value added services to itsglobal clients, DDCAP is a facilitator across a diverserange of Sharia compliant products, asset classes andinstruments in both the primary and secondary markets.DDCAP is a member of the International IslamicFinancial Market.

E | [email protected] | www.ddcap.co.uk T | +44 (0)20 7863 1250

Stella CoxMD, DDCAP Group & Chair of TheCityUK IslamicFinance Market Advisory Group

THE HUMAN CAPITAL CHALLENGE: SHAPING THE FUTURE www.sim

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The Human Capital Challenge: Shaping The Future Report isan open and unequivocal manifesto on the human capital andtalent development challenges specific to Islamic finance;looking at key areas in the development of talent, recruitment,employment, skills, education, Sharia, human resource,gender, digital, data, marketing, Millennials and leadership.

Report contributors include some of the most dynamic,committed and enthusiastic champions of the industry with afootprint across the globe. They critically examine and definethe important issues facing human capital and how as anindustry we can motivate, nurture and retain talent.

Ultimately, we have established Islamic Finance TalentDevelopment Goals (IF- TDGs) - to give the industry greatersuccess and long-term sustainability.

At Simply Sharia Human Capital (SSHC) we believe thesegoals are the start of industry transformation, as we facechallenges from digital disruption, fintech innovations andcompetition. We need to look at investing in people who willbring their own disruptive innovation, ideas and skills tobenefit Islamic finance.

We hope you will join us in embracing these goals andmaking them a part of the change you want to see andultimately let them navigate Islamic finance towardssustainability, inclusion, profit-sharing and shaping theinnovators of tomorrow.

Pledge your support to the Islamic Finance TalentDevelopment Goals (IF TDGs)

1. BENCHMARKING GLOBAL ISLAMIC FINANCE EDUCATION

2. TALENT & LEADERSHIP PROGRAMMES3. SHARIA SCHOLAR DEVELOPMENT4. ISLAMIC FINANCE DATA BUILDING 5. MARKETING, PR & EDUCATION 6. FEMALE PARTICIPATION IN ISLAMIC FINANCE 7. HUMAN RESOURCE BLUEPRINT 8. SUPPORTING ENTREPRENEURSHIP

Thank you

Faizal KarbaniCEO & Founder,Simply Sharia Human Capital

Nyra MahmoodDirector,Simply Sharia Human Capital


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Sponsors

“Industry and University collaboration is vital for agrowing and thriving economy. Universities mustbalance producing the work-ready graduates employersdemand with encouraging the thinking required to meetfuture needs -the Thought Leaders of their day.Universities must also not be afraid of change. With thegrowth of Sharia compliant products the FinancialServices sector has changed and so must howUniversities teach and engage with it.”

GSM LONDON

“We must dare to be differentand demonstrate that we havea real and workablealternative”

SSHC survey respondent

SIMPLY SHARIA HUMAN CAPITAL MESSAGE

"The Human capital question is impacting Islamicfinance today and its drive into the future. We hope thisreport will go a long way in steering the industry towardsits true self, providing an environment for talentdevelopment and setting ourselves milestones for thefuture sustainability of Islamic finance.”

INCEIF

“The FAA is committed to creating a sustainableecosystem for Islamic finance, enabled by quality andskilled human capital. By developing a standardisedand uniform curriculum for the sector which will bewidely accepted, we will be that one step closer tomaking this a reality.”

FAA

“At UEL we support the development, enhancement andprogress of Islamic finance human capital. We believethe industry must re-evaluate the fragmented nature ofeducation, where skills are a mismatch with industryexpectations. We need nothing short of a global effort todefine, develop and implement standards, determininga better value of human capital.”

UEL


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Human Capital OutlookChallenges Ahead

09THE HUM


“Recognising the shortage of staff in Islamicbanks and institutions, means the industry needsto design a long term human resource strategy”

© State of the Global Economy 2015


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Islamic Finance RecruitmentExploring the Global Landscape

Stephanie is a highly motivated recruiter that brings overfive years of experience in Audit, Research, Investor andTreasury Services to the field. Graduating from theUniversity of Auckland with double majors in Accountingand Commercial and a CPA Australia qualifiedprofessional, her in-depth knowledge of financialmarkets and the challenges as well as opportunitiesfaced by both employer and employee alike allow her toprovide insightful consultation when it comes tosecuring long-term career relationships.

Ellwood Consulting is a specialised recruitmentconsultancy based in Malaysia and focused on mid tosenior level placements in the functional areas offinance, financial services, human resources, IT andSales & Marketing.

E | [email protected] | www.ellwoodconsulting.com.my T | +60 3 2181 8220

Stephanie TingRecruiting Consultant, Ellwood Consulting

Nyra is responsible for the overall management andperformance of the UK’s first online Islamic financerecruitment and knowledge portal. In her time at SSHCshe has steered commercial awareness including newbusiness development, generating long-term trainingpartnerships with global organisations and establishinga digital presence for SSHC. Taking a pro-active role withthe UK and the international Islamic finance space, Nyrahas also initiated the creation of two Islamic finance reportson the human capital challenges facing the industry.

SSHC is a recruitment portal solely dedicated to Islamicfinance jobs and knowledge - connecting the globaljobseeker with Islamic finance employers and educatorson one online site. SSHC aims to nurture and developthe global IF industry through collaborations, training,outreach, inspired expertise and international talentdevelopment.

E | [email protected] | www.simplyshariahc.comT | +44 (0)208 945 3786

Nyra MahmoodDirector, Simply Sharia Human Capital (SSHC)

Recruitment is a challenging area for those working in theindustry and for those wanting to find a position in Islamicfinance. The difficulty arises from sporadic information onopportunities and job openings, to a lack of definitive,transparent and measurable data coming out of HRdepartments of Islamic Banking and Finance (IBF) institutions.In addition, it is prudent to remember that IBF still lacks thescalability and skills of conventional sectors. These issuessomewhat set the tone when looking at an overview of theopportunities available in the Islamic finance recruitment space.

United KingdomDespite the UK’s strength on the global stage as one of thefastest growing economies in the G7 in 2014 and it’sunemployment at a record low – the face of Islamic financejob’s market is still relatively small.

Omar Shaikh, Executive Board Member at UK Islamic FinanceCouncil (UKIFC) receives numerous enquiries about jobs,internships and moving careers from the conventional toIslamic finance: “The reality is Islamic finance is a youngindustry still developing and growing. We need people withexisting skills and experience, which is why Islamic bankstend to employ experienced staff from conventionalinstitutions. Through reviewing the accounts, stand-aloneIslamic banks indicate they have approx. 400 + headcount intotal which is not a huge job market.”

He adds: “Capacity gaps do remain, however, among Shariascholars, which is where the sector needs to createinternships and programmes to give scholars the transferableskills to work in Islamic banking and finance. UKIFC werepioneers with our Sharia Scholar conventional markets CPDprogramme. Now we need organisations to take on youngscholars and train them to build future capacity.”

Omar’s advice to graduates is to gain experience in theconventional sector and look for opportunities abroad: “I dorecommend, if you have the opportunity, travel to Malaysiaand the GCC and work within Islamic financial institutionsthere. The depth and breadth of experience you will gain inthose regions – living, working and being active in that space- will put you in a notable position to further your career withinUK IF institutions afterwards.”

GCCThe GCC is still the largest region for Islamic finance opportunities.QISMUT: Qatar, Indonesia, Saudi Arabia, Malaysia, UAE andTurkey commanded 78% of international Islamic bankingassets in 2012, growing at a 5 year CAGR of 16.4%.1

But how does this resonate into recruitment opportunities?Currently there is little definitive data from HR across IBF institutionsin the region to really understand the recruitment landscape andalso recognise which areas need what type of candidates frombankers and auditors to wealth managers and lawyers.

For foreign candidates, the issue of nationalisation will alsoplay a part, as much of the GCC is looking at nationalisationpolicies to regulate the supply of expat labour in the long run.The Qatari government has put human capital developmentas one of their key objectives in the ‘Strategic National Vision2030, emphasising the need for skilled employees, training,“embedding international best practice in employmentpractices” and “providing value-added learning andemployment opportunities for Qatari nationals.2”

However, with skills shortages and inexperience among thenational labour force3, the GCC is still looking at conventionaland international candidates to fill senior positions in Islamicbanking and finance.

“The reality is Islamic finance is ayoung industry still developingand growing We need people withexisting skills and experience,which is why Islamic banks tendto employ experienced staff fromconventional institutions"


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With declining oil prices, changes in the global regulatoryframework for banks and insurance companies, and “its ownfragmented nature,4" it is important to note that banking andfinancial service industry’s online hiring activity in the Gulfregion continued “to decrease for the second month,registering a negative growth of -8 percent in September 2015as compared to the same month in the previous year.” 5

The IMF recently said structural reforms in the region, especiallyin areas of business and financial markets are “needed tofoster private sector expansion and job creation.” 6

MalaysiaMalaysia has been identified as a rapid-growth market(RGMs) and a key reference centre to provide leadership forthe next phase in the industry’s progress7. Much of thecountry’s success can be attributed to regulatory clarity,driven by the introduction of the Islamic Financial Services Act(IFSA) 2013, ensuring Sharia scholars are legally accountablefor approved financial products and retail portfolios.

The need to focus on Sharia compliance is driven by the needto achieve socially responsible investment. Therefore inMalaysia, recruitment for Sharia compliance - as enforced bythe IFSA - has the highest demand at present.

However, recruitment challenges remain when searching forexperienced hires that are legally qualified and/or licensed totake more senior positions. The market has not been kind tograduates of Islamic finance; deterred by inexperience andfearful of liability for Sharia compliant products, Islamicfinance institutes have acted accordingly in not hiringgraduates. This has also extended to experienced hires whotook gap years to further their studies in Islamic finance in thehopes of qualifying with enhanced knowledge. The situationis delicate, such candidates have higher salary expectations(in view of prior and new experience) but employers have yetto warm to meeting their expectations in senior positions.Now is probably the time for HR to consider devising talentdevelopment programmes, which are able to capitalise ontalent within this pool in order to make a vital contribution tothe future success of Islamic finance.

ConclusionIslamic finance recruitment needs a rethink. Across the GCC,Malaysia and the UK we see recruitment statistics for thefinancial services, but what percentage of those figuresinclude precise Islamic finance data is difficult to ascertain.There needs to be a concerted effort by HR departments ofIBFs to collate and share data in establishing an accuratepicture of the opportunities available, the areas with talentshortage, salary trends and creating strategies to overcomerecruitment hurdles. It is then that we can begin to create atrue picture of recruitment needs in Islamic finance.

1. EY World Islamic Banking Competitiveness Report 2014.2. http://www.qcb.gov.qa/English/AboutQCB/Documents/Strategic_Plan_Book_EN.PDF3. Will Cooper and John Thompson, EY MENA: page 14-15 ‘The Human Capital Challenge: Shaping The Future’ Report4. S&P Global Head of Islamic Finance Mohamed Damak.5. Sanjay Modi, Managing Director, Monster.com (India, Middle East, South East Asia and Hong Kong)6. IMF World Economic and Financial Surveys: The Regional Economic Outlook: Middle East and Central Asia Oct 20157. EY World Islamic Banking Competitiveness Report 2014


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Let’s be absolutely clear from the outset that Islamic finance isa new industry and is still adjusting to defining therequirements it has regarding education, professionalstandards, graduate programmes, internships and mentoringprogrammes. There have been some initiatives, but overallthere is a long way to go and we must set realisticexpectations with regard to the changes that will need to bemade in order to match off against the conventional industryin this space.

No doubt we need a greater critical mass in the industry. Wealso need globally accepted professional standards andaccreditation, somewhat akin to the accounting profession.However, let’s remember that many of these professionalorganisations have been in existence for over a hundredyears and have gone through the very same growing painsthat we, as an industry are going through. Steps are beingtaken to address this through the likes of Association ofIslamic Banking Institutions Malaysia (AIBIM), GeneralCouncil for Islamic Banks and Financial Institutions (CIBAFI),Association of Chartered Islamic Finance Professionals(ACIFP), soon to be renamed, and the Financial AccreditationAgency (FAA), but these will take time to develop andimplement. I very much understand that the need, however,is now.

There is a very pressing requirement with these organisations,and perhaps others, to develop international professionalstandards; provide input into curricula at all levels and toencourage and promote mentorship and internship, withinboth industry/student and academia/student relationships.Skills, competency and knowledge must be transferred in aproactive and constructive work environment as well as in theclassroom. These activities are the very lifeblood of a growingand developing industry.

So do we wait until all our ducks are in a row? Until we havesignificant scale in the industry? Until we have a globalprofessional body setting professional qualification standardsand defining Continuing Professional Development (CPD)standards? Until markets for human capital in Islamic financebecome inter-operative on a global basis? The answer isclearly a resounding No. Therefore, while a partial vacuumcontinues to exist, we must take control of our own destinyand do what we can, as effectively as we can, and as quicklyas we can.

We must work the opportunities and engage with industryand associated professional services in order to make adifference now. We must be visible, vocal and well organised.My own institution, INCEIF, has been in existence for less than10 years and now has close to 2000 students at postgraduate level, both face-to-face on campus and online inover 80 countries. Here are some of the things that we havedone and which are working to get our students, alumni andstakeholders closer together and to build towards the goalsdefined above.

Graduate OpportunitiesGraduate Programmes, Internships & Mentoring

Daud has been in the financial services industry for over41 years, with significant experience in Asia, Europe,Latin America and the Middle East. He was previouslyActing CEO of Asian Finance Bank, an Islamic bankbased in Malaysia, and was the first Managing Directorof Hong Leong Islamic Bank. Currently, he is President& Chief Executive Officer of INCEIF – The GlobalUniversity of Islamic Finance. Prior to INCEIF, Daud wasthe Global Islamic Finance Leader with Deloitte. Heholds an Economic and Social History Honours degreefrom the University of Bristol, UK.

Established by Bank Negara Malaysia to develop talentfor the global Islamic finance industry, INCEIF, is arespected leader in Islamic finance. Nearly a decadeafter its inauguration, INCEIF is consistently producinggraduates in Islamic finance studies, the majority of whohave found employment in regulatory bodies, academicand financial institutions all over the world.

E | [email protected] | www.inceif.orgT | +60 3 7651 4000

Daud Vicary AbdullahCEO, INCEIF Engagement with industry starts at the top. We have board

members and members of our INCEIF Governing Council andProfessional Development Panel, who are CEO’s of Islamicfinancial institutions in Asia, the Middle East and Europe. Wehave managing partners of professional services firms andsovereign wealth funds also on these committees. Indeed,the majority of our key stakeholders are from industry andthey help set the strategy and monitor the execution of thatstrategy. In addition they are proactive in setting up,suggesting and driving closer collaboration between industry,academia and students through a number of initiatives. Theyare also actively engaged in providing input into thedevelopment of our curricula. From my point of view, thiscollaboration, commitment and engagement has been vital indifferentiating INCEIF.

Our curriculum is primarily set by industry practitioners fromaround the world. Our research is guided and very oftenfinanced by their input. We actively promote engagementbetween our students and industry leaders. They come anddeliver lectures, they actively support our curriculum asSME’s, they engage with small groups of students, both faceto face and online, to discuss research and industrydevelopments. We have called these activities the “INCEIFMingle” under a broader title of ACTION LEADERSHIP. Justrecently a major IFI selected 2 topics out of 20 submitted byour students, to be presented and discussed in detail by thestudents with the leadership team of the Bank. Both sidesrelished the opportunity to discuss, debate and explore. Itwas also an excellent shop window for the students todemonstrate their skills and their thought-leadership topotential employers.

As time goes on, over the coming weeks and months, we willdo more of this. We will experiment, we will ADD, UPDATEand DELETE from programmes and initiatives. In the end, it isabout taking effective action to make the CHANGE happen,rather than sitting back and waiting for someone else to makethe change, or worse still comparing apples with pears andsaying that “it’s really tough to compete with the well-established conventional marketplace.” We take the standthat “The impossible does not exist!”

“Let’s be absolutely clear from theoutset that Islamic finance is anew industry and is still adjustingto defining the requirements it hasregarding education, professionalstandards, graduateprogrammes, internships andmentoring programmes”


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So, in that context, here are some of the things that we mustdo in order to create the right framework to develop anenvironment for graduate schemes, internships andmentorships:

l Form a global network of Industry associations to develop and agree on professional standards

l Encourage active interaction between academia, students and industry at all levels:

MentorshipsResearch collaborationsCurriculum inputLectures and talks etc.

l Integrate technical Islamic finance skills with soft leadership skills, using industry practitioners for input and instruction

l Develop courses that include industry attachmentsl Encourage ‘Action Leadership’ initiatives within the

curriculum and get industry to sponsorl Broaden the scope beyond the Islamic Finance Industry to

include Professional Services such as Accounting, Consulting and Legal

There is after all, much to do and not a moment to lose!


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The GCC continues to experience rapid economic growth,driven by economic expansion and diversification. Historicallythis growth has been supported by expatriate labourequipped with the necessary skills and experience lackingamongst the National labour force. The rapid growth andunique characteristics of the Islamic finance sector provide anopportunity for employers, educators, government andprospective employees to come together to address thiscritical skills gap.

To articulate these issues, EY defines seven pillars of thejourney through employment, illustrating the challenges andopportunities relating to Islamic finance and the wider economy.

1. Labour Supply Strategy and PolicyRegulations such as quota tools (e.g. Nitaqat in Saudi Arabia)aim to regulate the supply of expat labour. Regulation isineffective without initiatives to improve the availability andquality of Nationals, without such initiatives, growth may beinhibited and there is a risk of avoidance. Employers must beengaged and consulted in the development andimplementation of such policies.

The Real Skills GapA GCC Outlook

Will Cooper is a Partner in EY’s MENA AdvisoryBusiness. He leads EY’s Government SocialInfrastructure practice in the region, covering Labour,Education, Youth Development, Social Welfare andEntrepreneurship. This focuses on the design andimplementation of strategies to develop nationalcapability as an enabler for GDP growth and economicdiversification.

EY is a global leader in assurance, tax, transaction andadvisory services. The MENA practice of EY has beenoperating in the region since 1923. For over 90 years, ithas grown to over 5,000 people united across 20 officesand 15 countries. As an organisation, EY MENAcontinue to develop leaders who deliver exceptionalservices to clients and who contribute to localcommunities, reaffirming their position as the largestand most established professional services organisationin the region.

E | [email protected] | www.ey.com/mena T | +971 4 332 4000

Will CooperPartner, EY MENA

Fewer than 30% of GCC students say they have sufficientinformation about job opportunities. Educating jobseekersabout opportunities is as important as providing skills. Limitedaccess to this information prevents Nationals from makingeffective choices towards the jobs that they want.Collaborative platforms to offer career information can closethis information gap, aiding students to plan course selectionand boosting interest.

There is an ongoing need to develop a culture amongst GCCNationals in which work within the private sector is seen asrewarding. To create a dynamic private sector that supportNationals, players must work together to boost appetites totake on challenging work, including supporting individualswho wish to go into business themselves.

4. Incentives and Employment SupportGovernments may elect to invest in incentives for Nationals toenter specific industries. Incentives may be tied to education(e.g. through university scholarships), or to counter the salarydifferentials between public and private sectors. However, in aperiod of increasing fiscal tightening amongst GCCgovernments, such incentives must offer long-term,sustainable benefits, including retention within the sector, andmay be better delivered in partnership with employersthemselves.

5. Job MatchingEffective and efficient matching of jobs to skilled Nationals iskey to the effective functioning of the labour market. Thisprovides clarity to jobseekers over the availability andrequirements of given jobs, and ensures that employers get theright number of candidates with the right skills at the right time.

6. Continuing Professional DevelopmentEnsuring that opportunities for career development areunderpinned by provision of ongoing training, enables juniorNational resources to displace more experienced expatlabour over time, whilst also aiding retention. This requiresdefined career structures, professional HR provision andinvestment in training.

7. RetentionEncouraging young Nationals to commit to long-term careersin industry is the key to reducing the dependence on expatresources. Role models can be created through highlightingthe successes of Nationals in developing long-termsuccessful careers within the sector, and senior positions canbe filled with qualified, experienced staff.

John Thompson is a Government and Public SectorDirector based in Abu Dhabi. With over 15 yearsexperience in designing and implementingtransformational change in the public sector, he hasworked on the full lifecycle of transformation fromevidence-led policy through to implementation. Hisrecent engagements have included undertaking detailedsectoral labour market research and analyses withinSaudi Arabia.

John Thompson Director, EY MENA

2. Attractiveness and AwarenessAwareness is critical to increasing the supply of qualifiedNationals. Lack of understanding of private sector opportunitiesrestricts Nationals from developing an interest, and hinders thedevelopment of appropriate skills. Employment of Nationals inIslamic finance careers has increased in recent years, driven bygreater awareness, and by meeting the key criteria Nationals useto select a career:

The Islamic finance sector offers a combination of reward,career development and cultural acceptance. These factorscombine to encourage Nationals not only to seek work, but todevelop relevant skills during their education.

3. Education and TrainingEY have identified four key areas for interest within the fieldsof education and training that require attention to address theskills gap within the GCC, summarized below:

Educational content must be aligned with employer needs.Currently only 29% of GCC employers state that educationsystems prepare students with relevant skills for theworkforce. Players must come together to address shortfallsfrom K-12 through to university and vocational training to meetspecific sector needs.

Workforce experience can bridge the gap from education towork. Expectations can be aligned and interest developed,through work experience or internships.

Employers should work with education and traininginstitutions to create partnerships to expand this currentprovision wherever possible.


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All graphics © 2015 EYGM LIMITED


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There is a growing need for effective, sustainable andinfluential mechanisms to enhance the process of talentmanagement within the Islamic banking and finance (IBF)institutions – the question remains, how do we do this?

Firstly, talent management is not a "product" or "solution" thatbanks and institutions can purchase; neither is it about simplyattracting talent.

Talent management is about ongoing research, developmentand implementation of a series of business processes andhuman resource including strategic planning, recruitment andassessment, compensation and benefits, careerdevelopment, engagement, mentoring and coaching,leadership maps, succession planning, retention,performance management and learning and development.

Prioritise the Talent AgendaIn the talent management process, execution is king. Carefulplanning at corporate level and coherent effort atdepartmental level should be applied to connect the overallbusiness needs, strategies and culture.

The current narrative that thousands of career opportunitiesare available in Islamic finance is not an accurate picture.Islamic banks have failed to provide suitable jobs andopportunities, especially for non-experienced Islamic financegraduates. This approach restricts the ability to bring changeto Islamic bank brands and their products.

There is a great need to build infrastructure to overcome theshortage of staff. IBF can build a breadth and depth ofcapability, by considering working with educationalinstitutions to develop specific specialised skill requirements ifthey are not readily available in the labour market. To bridgethe gap, syllabus and course content of universities andcolleges offering Islamic finance programmes need to bereviewed and more practical-based knowledge introduced tothe curriculum. It is essential for educational providers toidentify what kind of skills and capabilities Islamic bank’sneed to be able to compete in an emerging financial marketand how they can bridge specific gaps.

In the Trade Arabia Report 2015, 50% of the 60 bankssurveyed, accepted that it is difficult to hire graduates forentry level positions. This is in part due to a lack of talentmanagement development, which unfortunately eliminatesyoung graduates from the Islamic banking HR selectionprocess.

Thus it is imperative for Islamic banks to take significant stepsto improve its brand attraction and fill its talent pipeline byinitiating talent programmes through bank recruitmentchannels such as websites, career fairs and local universities.It can be an effective strategy for growing the pool of agilelearners, ambitious Millennials and devoted graduates(Islamic finance, Islamic studies, Islamic law, Marketing,Accounting, Fiqh studies etc) from recognised colleges anduniversities.

Dr. Tahreem Khan, is a lecturer at Al YamamahUniversity, teaching Business and MBA candidates. Shehas written extensively on human capital challenges inIslamic finance for the International Journal of Businessand Social Science (IJBSS). She completed a Mastersin Islamic Banking Management at LoughboroughUniversity, UK and a PhD in Arabic and Islamic Studiesfrom the University of Aberdeen, Scotland.

Al Yamamah University (YU) was established in May2001 as a single college by the Al-Khudair family andreceived University status by the Saudi Ministry ofHigher Education in 2008, following it opening its doorsto female students two years prior. The University’s mainacademic offering is in both undergraduate andpostgraduate courses in Business, Computing & IT andEngineering and Architecture.

E | [email protected] W | www.yu.edu.saT | +966 11 224 2222

Dr. Tahreem N. KhanAssistant Professor Al Yamamah University, Riyadh, KSA

Create Inclusive Successive OpportunitiesSuccession planning is one of the most important areas forbusiness today. In Islamic finance the approach to successionplanning is sporadic at best and non-existent at worst.

Ahmed Ali Siddiqui, Product Development Specialist atMeezan Bank, Pakistan reiterates how certain areas ofIslamic finance have suffered due to a lack of successionplanning and employee retention: “Specialised areas likeSharia audit, product development and Sharia complianceare very hard to retain talent in. The industry has a [higherdemand] for Islamic bankers – who are usually employedfrom abroad and are paid premium salaries.”

Furthermore, according to Professor Rodney Wilson, winnerof the 2014 International Development Bank (IDB) prize inIslamic banking and finance: “Talented employees are oftenthe most difficult to manage as they have high expectations ofpromotion and salaries. They are often more disruptive thanthe less talented. Despite these challenges Islamic banksneed to recruit such people for their businesses to prosper.”

A survey1 of 70 UAE Islamic banking employees, examiningthe links between organisational climate and employeeturnover, found employees did not purely look at the salary,but wanted genuine developmental opportunities in theworkplace to remain at an organisation.

When new vacancies open up in Islamic finance institutionsand there is a lack of internal candidates, all too often thepositions are filled by outsiders and in many cases,specifically with Islamic banks, by candidates from theconventional space.

Here is where Islamic banks need to support and maintaininternal talent by determining which positions need asuccession plan and based on that identify appropriatecompetencies and groom employees for higher levelresponsibility according to that specificity. To make thesuccession process effective, all level of employees in Islamicbanks should be aware of available succession opportunities.

“Firstly, talent management is nota "product" or "solution" thatbanks and institutions canpurchase; neither is it aboutsimply attracting talent”

Human ResourcesTalent Programmes and Talent Teams in Islamic Banking & Finance

1. Suliman, A. M., Al Obaidli, H. (2011). Organizational climate and turnover in Islamic banking in theUAE. International Journal of Islamic and Middle Eastern Finance and Management, 4(4), 308-324.

2. http://www.trainingmagazine.ae/dubai-islamic-bank-launches-bank-wide-high-potential-employee-development-program/3. QIB website 20154. Arab News. ABG becomes women empowerment partner for Islamic banking. 20 August 2015.

Connecting the DotsInternally IBF can put in place measures that work towardsdeveloping talent and creating ‘talent teams’ to enhanceorganisations and employees. One of the investments that willpay dividends is internal training programmes. Keyemployees, speakers, and experienced Sharia advisorsshould be involved in conducting training sessions tocommunicate crucial operational issues and offer young newtalent enhanced business insight, operational awareness anda way to accelerate Islamic finance development. This activitybecomes a part of the talent management process.

There have been some success stories with similarprogrammes in Islamic banks:

l Following the launch of a mentoring programme for newemployees in 2012, Dubai Islamic Bank (DIB)2 launchedthe ‘High Potential Employee Program’ providing ‘high-potential’ staff the opportunity for career development andleadership options.

l Qatar Islamic Bank (QIB)3 introduced a bank-wide e-learningprogramme to increase awareness on branch operationalrisks. All bank employees are required to pass an exam atthe end of the course.

l Bahrain’s Al Baraka Banking Group have begun a year-longcampaign to empower women by giving them leadershippositions, while promoting the role of women in the Islamicfinancial sector.4

It’s important to consider employee commitment is increasedif IBF empower their employees by involving them acrossfunctions including in structuring products, participating indecision making, assigning them to challenging tasks andprojects and creating new positions

Extensive research has been carried out on Islamic bankingproducts and their authenticity, but there has hardly been anyresearch looking at talent management within the IF space.Islamic institutions need to identify internal inconsistenciesobstructing the development of a talent process, only thencan they begin to generate a new breed of leaders takingIslamic finance into the next decade.


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In 2011, the Islamic Finance Talent Development Program(IFTDP) was established by the Islamic Corporation for theDevelopment of the Private Sector (ICD), a member of theIslamic Development Bank Group.

The Islamic Finance and Banking Industry has grownsignificantly over the last few years. However this growth isunmatched - in both quantity and quality – from a humancapital perspective.

At one time, it was sufficient to have a conventional bankingexperience to move into the Islamic finance industry; today,with industry development, maturity, and increasing productcomplexity and uniqueness, such movement betweenconventional to Islamic finance will become more difficult.

With this in mind, the ICD realised the inevitable need for aspecialised talent development programme supporting theIslamic finance industry. The ICD at that time decided tooperate through financial institutions’ intermediaries with theaim of having better developmental impact in its membercountries. In time the strategy was promising, though a keychallenge was finding the skilled calibre of leaders, equippedand ready to lead the newly formed financial institutions.

Though the initial trigger to establish the programme wascompany specific, the programme was however, establishedwith the whole industry in mind - given the mandate andmindset of the ICD as a developmental institute.

Since inception the programme is in a continuousdevelopment mode, becoming better and better in terms ofrelevance, practicality, robustness, and selectivity.

Twelve IFTDP Associates join the programme every year tolearn more about Islamic finance, and themselves. Theprogramme is a two years programme, where associatescomplete two one-year rotations in one of the business unitsin the ICD or IDB Group. During the rotations, the Associatesare assigned tasks/projects as fully-fledged employees.Associates, undergo a 15 months Masters programme in‘Islamic Finance and Leadership’ with one of the top businessschools in the world, IE Business School.

Feedback and guidance opportunities are a compelling partof the programme, through performance appraisal, 360feedback, and mentorship. Some of the latter is still a work inprogress – again in part due to the continuous developmentnature of the programme.

As the IFTDP matured and our vision expanded, we opted tocollaborate with one of the best learning institutions and co-design our own course of choice. We believe the Masters inIslamic Finance and Leadership is in itself a contribution tothe Islamic finance industry, given its unique blend ofconventional and Islamic finance skills and teachings and theintense practical nature of the programme concluding with acase study in the field of Islamic finance. Thus, the IFTDP is

not only grooming executives for the industry, but alsoenriching and strengthening the intellectual footprint ofIslamic finance.

The IFTDP was developed with the industry in mind. Webegan it as a support mechanism to our strategy and it hasresulted in the growing ambition to champion the ideas ofIslamic finance and ultimately change lives.

Our aim has always been to work with industry insiders;offering them the ways and means to participate and partnerwith us in this programme. We envisage things like staffexchanges, IFTDP Associates rotating with partnercompanies and sponsorship of Associates in the programme.We also want to offer the ICD-IE Masters in Islamic Financeand Leadership as an open course for other institutions to joinand enable their staff with knowledge that will help to propelIslamic finance.

In the end we understand that there is a lot more to a talentdevelopment programme than grooming talent. Good talentdevelopment programmes and talent teams nurture currentemployees as well as prospective ones, drive organisationalculture, prosper business and ignite positive internal change.To make these programmes a success, firstly you need anerudite mindset enabling programme designers to be flexibleand agile and secondly offer candidates the independence todemonstrate their ethics, values, and passion for their field.

If you are a stakeholder in the Islamic finance and bankingindustry, talent programmes are well worth an investment.You are accountable to one another as programme designerand programme candidate; adding value to one another –ultimately it is the most Sharia-compliant of transactions.

ICD Talent Development ProgrammeA Success Story

Mohamed Tantawi joined the Islamic Development Bank(IDB) through their Youth Professional Programme (YPP)in 2007, rotating through the Group’s different internaldepartments. Before his current position he was the ICDHead of HR. Mohamed has a bachelors in BusinessAdministration & Finance from the American Universityin Cairo, and a Masters in Organisation Psychology fromTeachers College Columbia University, New York, USA.

The ICD is a multilateral organisation a part of the IslamicDevelopment Bank (IDB) Group. Its authorised capitalwas doubled to $4.0 billion in 2015 and its shareholdersconsist of the IDB, 52 member countries, and five publicfinancial institutions. Established in 1999, as part of IDB’sstrategy recognising the private sector’s critical role inthe socio-economic prosperity of its member countries,the ICD is mandated to offer long-term and short-termfinancing and advisory/arrangement services. Theseinclude offering leveraged finance to partners to extendtheir capabilities, establishing partnerships at thestrategic or tactical level, targeting direct financing of theprivate sector, and injecting selective equity and debtproducts into projects that demonstrate strong potentialto develop the private sector world.

E | [email protected] W | www.icd-idb.comT | +966 12 644 1644

Mohamed Magdy Tantawi HR Lead Expert, ICD

“If you are a stakeholder inIslamic finance…talentprogrammes are well worth aninvestment. You are accountableto one another as programmedesigner and programmecandidate; adding value to oneanother – ultimately it is the mostSharia-compliant of transactions”

Diagram Source: Dr. Tahreem N. Khan, Ass Prof, Al Yamamah University, KSA


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of Islamic Finance


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Radical Rethinking

“Delivering the employment promise of the Islamiceconomy will require bold and innovative thinking,questioning longstanding practices and habits”

As we move from asking what is the Islamic economy, to howcan we best benefit from it, there is a recognition the Islamiceconomy’s diverse sectors, ranging from finance to food,tourism to fashion, pharmaceuticals to cosmetics, have aninherent relationship with each other, defined by the valuesthat underpin them and their consumer base. Thisinterconnectedness is creating previously overlookedopportunities, not just for market growth but also employment.

According to the State of the Global Islamic Economy Reportfor 2015/2016, Muslim consumer spending, excluding Islamicfinance, topped $1.8 trillion in 2014 and will rise to $2.6 trillionby 2020. With a consumer base of 1.7 billion, predominantlyyoung, Muslims, the Islamic economy is one of the fastestdeveloping markets in the world. But with rapid growth comeschallenges, not least of which is job creation, training andeducation. How we meet the employment aspirations of ayoung population, growing at twice the rate of the rest of theworld, will be a major tipping point for the Islamic economy.

As the Islamic economy matures the need for a highlycompetent, motivated and involved work force, with thenecessary understanding of business, as well as knowledgeof Sharia, increases. For example, continued double-digitgrowth in the Islamic finance sector will create tens ofthousands of new jobs over the next decade in the MiddleEast alone, according to AT Kearney. Similar employmentopportunities will also emerge across the Islamic economy.But while the demand for skilled and experienced employeesis increasing, the supply of those with the right skills, knowledgeand experience is lagging. A report produced by ThomsonReuters and ICD, the Islamic Corporation for the Developmentof the Private Sector, based on a survey of 60 Islamic banks in15 countries, said that half had reported difficulties in hiringsuitably skilled graduates for entry-level positions.

The Islamic finance industry is one of its fastest growingsectors within the Islamic economy. Yet the sustainability ofthe industry is being challenged by the reliance of Islamicfinancial institutions on staff recruited from the conventionalsector. While recruitment in the conventional financial sectoris not difficult, the story is the polar opposite in Islamicfinance. The lack of cooperation between academia andindustry to develop a wholesome curriculum in Islamicfinance has resulted in a mismatch between the graduatesproduced and the skills required by the industry. A goodillustration of the shortcomings of the existing system is thatvery few Sharia scholars become bankers, while manyconventional lawyers become bankers.

There are signs that things are starting to change. Accordingto a report produced by Thomson Reuters and the IslamicCorporation for the Development of the Private Sector, morethan 530 institutions worldwide now offer courses, or degrees,in Islamic finance. The UAE, in third place behind Britain andMalaysia, has 31 course providers and nine fully accrediteddegree providers. Among these is the Dubai Centre for IslamicBanking and Finance. The centre is a result of the mutualcooperation between Hamdan Bin Mohammed e-Universityand the ‘Dubai: Capital of Islamic Economy’ initiative.

Islamic EconomyBold, Innovative Thinking Critical to Success

Abdulla Mohammed Al Awar joined Dubai IslamicEconomy Development Centre (DIEDC) as CEO in 2013,where he has been tasked with implementing the overallstrategy of the Centre, business development activitiesand efforts to create an environment of entrepreneurship,inclusivity and hub of financial investment. Abdulla hasalso led Dubai International Financial Centre (DIFC) andserved on several committees and boards including theEconomic Committee of the Executive Council of Dubaiand Bourse Dubai. Abdulla holds a Bachelor of ScienceDegree in Business Administration from the University ofColorado, Boulder, USA and is a graduate of theMohammed Bin Rashid Programme for LeadershipDevelopment (MBRPLD).

Dubai Islamic Economy Development Centre (DIEDC)was established in 2013 to transform the City into aglobal hub for the Islamic Economy, under the auspicesof His Highness Sheikh Mohammed Bin Rashid AlMaktoum, Vice-President and Prime Minister of the UAEand Ruler of Dubai. DIEDC is mandated to implementand promote a seven-pillared strategy comprisingfinance, the ‘halal’ industry, tourism, digital infrastructure,art, knowledge and Islamic standards. Equipped with financial, administrative and legal tools,the DIEDC is directed to create a comprehensiveframework to drive strategy, conduct research on thecontributions of Sharia-compliant activities and explorenew services to boost the economy.

E | [email protected] | www.iedcdubai.ae T | +971 4 305 5252

Abdulla Mohammed Al AwarCEO of Dubai Islamic Economy Development Centre(DIEDC)


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Nevertheless, the learning and development challenge remainand it is not unique to Islamic finance. It is common acrossthe Islamic economy value chain. According to Deloitte’sGlobal Human Capital Trends 2015 report learning anddevelopment is considered the most important talent-relatedchallenge faced by organisations in the Middle East. Despitethis, only 37 percent of them believe their organisations havethe necessary tools and programmes to meet this challenge.

If the gap between need and capabilities is to be bridged, amulti-dimensional and inter-disciplinary human resourcesstrategy is required for the education and training of the futureleaders of the Islamic economy. A more comprehensiveapproach and close collaboration between the industry andacademia is essential to ensure a steady stream of competentand versatile talent to support greater innovation anddynamism across the breadth of the Islamic economy. At thesame time, the existing workforce’s knowledge and skillsmust be enhanced and businesses should treat leadershipdevelopment as a long-term investment across all levels,rather than a discretionary training expenditure when timesare favourable.

With young people increasingly making up more of theIslamic economy’s workforce, it is imperative businessesmeet their own and employees needs through acceleratedleadership paths, a greater sense of purpose and mission,human capital development and greater flexibility in workplaces, schedules, and tasks. Meanwhile, universities andother learning centres need to ensure courses reflect the realworld needs of employers.

It will not be easy to achieve the necessary transformation tomeet the aspirations of future generations. Delivering theemployment promise of the Islamic economy will require boldand innovative thinking, questioning longstanding practicesand habits, and a greater focus on developing people as akey element in driving both employment opportunities andbusiness success. Businesses and academia need to seizeownership of these challenges and show leadership inaddressing them.

23THE HUM


“A more comprehensive approachand close collaboration betweenthe industry and academia isessential to ensure a steadystream of competent and versatiletalent to support greaterinnovation and dynamism acrossthe breadth of the Islamiceconomy”

24THE HUMAN CAPITAL CHALLENGE: SHAPING THE FUTURE www.simplyshariahc.com

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LeadershipMillennials Redefining the Islamic Finance Leadership Gap

Dr. Sayd Farook is Vice Chairman and CEO of MiddleEast Global Advisors. He also serves as the ViceChairperson of the Board of Trustees for theResponsible Finance Institute. He is an Advisor to theExecutive Office of HH Sheikh Mohammed Bin RashidAl Maktoum, Ruler of Dubai and Vice President andPrime Minister of the UAE and also serves as a ProjectsAdvisor to the Dubai Islamic Economy DevelopmentCenter.

Middle East Global Advisors (MEGA) is an intelligenceplatform connecting to opportunities in the rapidlydeveloping emerging markets of the Middle East NorthAfrica Southeast Asia (MENASEA). With a 22 year-oldhistory in the MENASEA economies, MEGA facilitate thedevelopment of knowledge through the production ofresearch and insights and technology and connectivityplatforms accelerating the dissemination of informationand knowledge.

E | [email protected] | www.meglobaladvisors.com T | +971 4 441 4946

Dr. Sayd Farook Vice Chairman and CEO of Middle East Global Advisors

Islamic finance has a bright future if only it can harness thepower of Millennials.

Serious scarcity in energy, water and natural resource has itsown damning consequences, but a lack of leadershipimpedes any resolve to counter such colossal issues.Nowhere is this more evident than across business – big andsmall. For Islamic finance the question remains can wechange the way we think in order to embrace a newgeneration of leader? A generation, which is innovative,values-driven and the universal activist – the Millennial.

In the age of information, most barriers to entry that onceprotected and guaranteed the longevity of the largestorganisations are now slowly chipped away. Whether it isrecruitment services (LinkedIn), car hire services (Uber),consumer retail (Amazon), information itself (Google) or evenbanking, there are few sectors where the pervasive influenceof technology has not reshaped the dynamics of the industry. The only way for companies to stay on top of thesechallenges is credible and agile leadership; reacting to theground shifts and dynamically deploying company assets toremain relevant. Yet, leadership and all the qualities it imbues– vision, an ability to inspire, detail orientation and courage –is in short supply.

Leadership remains the number one talent issue facingorganisations around the world, with a Deloitte global surveyciting 85% of companies rating it as “urgent” or “important.”But only 14% of companies said they do an excellent jobdeveloping global leaders - the largest readiness gap inDeloitte’s survey.

The Islamic finance industry is no exception to this rule and itsneed for leadership to craft a distinct vision for the industry’sfuture is, in my opinion, even more acute.

Every company relies on offering a differentiated valueproposition that allows it to extract value which customersare happy to pay for. The Islamic finance industry collectivelyrelies on a unique social contract to attract a captivecustomer base, the legitimacy of which is determined by itsperceived adherence to the Sharia – Islamic legal code – inboth form and substance. This social contract based on thereligion is its differentiator and the differentiator needs tocontinuously evolve based on the needs and preferences ofthe company’s customers.

Yet, for a good part of the past decade, the Islamic financeindustry and many of its customers have collectively voicedconcerns over the growing chasm between the ideal and thereality. The ideal, as agreed by most industry thought leaders,is one of genuine profit and risk sharing and the financing ofreal enterprise, whereas the reality is the overuse of legalstratagems such as commodity Murabaha and the widespreadpractice to follow the letter of the law or the form; this withoutconsideration to the ultimate spirit or objectives of the law –the substance.

Still, there are very few existing leaders that have recognisedthey need to be at the forefront of crafting a new reality for theindustry’s prospects. Alarmingly, even fewer of the industry’sincumbent leaders appreciate the importance of grooming anew generation of leaders who can carry the mantra ofIslamic finance forward and craft a reality of Islamic financethat is forward thinking, innovative and values based.

Having taught and led several hundred professionals acrossIslamic finance, nowhere is this disillusionment moreapparent than in the youth – especially among Millennials(also known as Generation Y). They have the potential to alterwhat we now know as Islamic finance or fulfill the truepotential of Islamic finance. But perhaps not the style andnature of Islamic finance we see today.

So who are Millennials and how significant are they? Millennials, those born between 1980 and 2000 represent amarked shift from the attitudes of previous generations.Across most of the world, Millennials make up at least aquarter of the total workforce (In India that number issignificantly higher at over 50 percent). Deloitte estimatesMillennials will make up 75 percent or more of the globalworkforce in little more than 10 years1.

Their importance in the Islamic ‘world’ is even more significant.According to Pew Research Center study in 2011, more than62% of the world’s Muslim population is under the age of 30(i.e. falling squarely into the millennial category) in contrast tojust 40% in the United States, 43% in China and 51% globally.

What this implies is that Millennials will determine the kinds ofproducts on offer and more importantly what they seek fromtheir careers in / outside of the financial world. UnderstandingMillennials can therefore unlock significant productivity gainsand leadership firepower. Notably, their attitudes may dragthe industry closer to the ideals of Islamic finance, willingly orunwillingly.

Hence, it is vital to ensure we are able to harness theirpotential for powering the economic development across theIslamic ‘world.’

Some of the key characteristics of Millennials as identified bya global survey undertaken by INSEAD, Head Foundation andUniversum titled ‘Understanding a Misunderstood Generation’include:

CRAVING LEADERSHIP – Millennials are interested inleadership positions and rapid career advancement

CHALLENGING WORK – Millennials desire challenging work,which for them is not merely working long hours

WORK LIFE BALANCE – Millennials care deeply about worklife balance over money and status

PRIVATE SECTOR INFLUENCE – Millennials genuinelybelieve that the private sector has the power to influence theworld and significantly more so than the government sector

These attributes reveal Millennials want to engage their timeand effort in something they believe in, not just a 9 to 5 job.They want to know that the work they are doing has a positiveimpact on the world around them. Therefore, a recordnumber of them are not seeking positions in largecorporations, but rather looking for roles in start-ups andsmall institutions where they can experience and feel theimpact of their contribution.

They also want to be appropriately recognised and have theopportunity to grow in their positions rapidly. They rebelagainst the concept of advancing through years of dedicatedand unquestioned loyalty to institutions and leaders with loftybusiness titles. Rather, they are on the look out for institutionsthat actively cultivate open and inclusive leadership, maintainminimal bureaucracy and provide assignment-based careeropportunities. Time is precious to Millennials who view“experience” differently from previous generations.

Millennials also want to work when they want and how theywant. This doesn’t mean they don’t want to make an effort,but rather they want to do so on their own terms, balancingtheir work life commitments.

So what does this mean for the Islamic finance industry?Millennials are not going to be convinced by legal ruseswhich plague most of the industry’s practice. They believeIslamic finance has something interesting to offer at its corebecause of its focus on ethics, but they don’t see leadershipembracing these elements.

They need to be engaged with a vision and passion biggerthan the institution and themselves. They need currentleadership to focus on universal values and see Islamicfinance as they do - a powerful force to address the world’schallenges and support economic and social development fortheir economies. They also want positions that fast-track themtowards leadership and management.

"....there are very few existingleaders that have recognised theyneed to be at the forefront ofcrafting a new reality for theindustry’s prospects. Alarmingly,even fewer of the industry’sincumbent leaders appreciate theimportance of grooming a newgeneration of leaders who cancarry the mantra of Islamic financeforward and craft a reality of Islamicfinance that is forward thinking,innovative and values based"


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continues on next page >>1. Deloitte University Press: Global Human Capital Trends 2015: Leading in the new world of work. Copyright © 2015 Deloitte Development LLC


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weakness of the ‘Western’ banking system as unstable andthose at the top as incapable of understanding how to fix it.

Hence for Millennials, Islamic finance was the promise of analternative to the conventional system.

However, many elder practitioners of the industry seem to feelthat the Islamic finance industry is validated by increasedinvolvement of Western banks. This in my view is thegenerational departure between the two groups.

Over the past two years as the President of the Islamic Financeand Ethics Society (IFES), our team of members have attendednumerous Islamic finance conferences and spoken to dozens ofhigh-level executives in the industry from all over the world. Theconsensus among our team is that the underlying attitude is not adeparture from the conventional approach. It is as equallycorporate with very little manifestation of Islamic and ethical ideas.

I believe the next step for the industry is to develop a secondsector for itself. The current practice I will call Islamic ‘luxury’finance: billion dollar Sukuk, luxury real estate purchases andthe financing of behemoth towers built around the holiest sitesof the Muslim world.

The second industry should be called the Islamic ‘moral’economy describing financial transactions that meet the socialbenefit of its contractual arrangements and the manifestation ofSharia compliance and motivation.

Muhammad Yunus and the Grameen bank can be seen as acatalyst for this movement as it inspired the development ofKIVA, the world’s largest interest-free micro-finance crowdsourcing platform, providing access to capital for low incomeindividuals in the rural parts of the world.

This is the nature of opportunities many Millennials are looking for.

Currently Islamic finance is providing opportunities for manyBritish students to work for conventional banks and law firmswithin their Islamic finance departments. This does offernecessary opportunity for training within the conventionalsystem and our needs dictate that Islamic finance practitionersmust know how the conventional system works in order tostructure an alternative. However, I feel there is adisproportionate emphasis on working in an Islamic financedepartment within the conventional sector. There is an obviousoverlap between the venture capital industry and Islamicfinance. The venture capital industry has focused on profit andloss sharing financial products to invest in entrepreneurialactivities – this is the most successful model in recent history increating tangible economic growth.

Here is where the opportunity lies for Millennials and the eldergeneration to break from the past and focus on ideas ofentrepreneurship.

In the internet age we have the ability to access knowledge andpeoples from across the world quicker and cheaper than theprevious generation. Islamic finance can improve the situationby looking at the needs of society rather than solely the bottomline. There needs to be a cognitive shift away from the mereshuffling of money across one international hub to another.

If the industry does not change or respond, the Millennials willcontinue to carve their own space by using new technology,innovation and a global mindset.

Akhtar graduated from the University of British Columbiain 2011 with a BA in Political Science and History. Healso has an LLB from SOAS, where he co-founded theIslamic Finance Ethics Society (IFES). He has a LLM inInternational Financial Regulation and completed theCIMA Diploma in Islamic Finance in 2012. He iscurrently working on writing a popular book on Islamicfinance due to be published in late 2016.

The Islamic Finance and Ethics Society (IFES) consistsof a consortium of member universities from thefollowing institutions: SOAS, King's College London, theLSE, and CASS Business School; all located in London,UK. The Society intends to explore the solutions Islamicfinance can provide to the current social, economic, andenvironmental problems.

E | [email protected] | www.the-ifes.org

Millennials are contesting the modus operandi of modernday Islamic finance – and with good reason.

Born between the early 1980s and early 2000s, Millennialsfit into a large age range, thus making it difficult to pinpointviews of this entire group. However they share a commonexperience.

A Millennial myself, I embarked on my university years in2005 - 4 years after 9/11 and 3 years prior to the GlobalFinancial Crisis of 2008. These two events shaped theglobal Muslim Millennial enormously, yet differently. Thefirst event raised a critical consciousness amongst MuslimMillennials, due to living through an era of fear, war andconstant scrutiny. The second event, demonstrated the

Akhtar MohammedFounding Member of Islamic Finance Ethics Society (IFES)

MillennialsMy Perspective


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These are not necessarily all inclusive rules but merelysuggestions to engage with a generation that doesn’t want tobe bound by the rules of large bureaucratic and layeredorganisations. If Islamic financial institutions can harness thetalent of Millennials, it may accelerate the development ofIslamic finance towards its true ideals while making it one ofthe most innovative and dynamic industry sectors in the world.

However, if we fail to engage this generation, theirdisenchantment will likely move them away from Islamicfinance and from the finance industry altogether, resulting inthem focusing on industries that can make a difference –such as technology, marketing or consulting. Worse still,Millennials may eventually see a loss of faith in Islamicfinancial institutions and what they represent (other thancustodians of funds) and ultimately, a disruption of theexisting business model.

The onus is on the Islamic finance industry to engageMillennials now so as to rapidly evolve from the inside ratherthan be disrupted from the outside.

Some practical recommendations for current Islamic finance leaders:


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As Islamic finance expands, so do the expectations that itssustainability will be driven not merely by risk managementand regulatory frameworks but equally through financialinclusion and participative governance models. As anestimated 72% of people living in Muslim-majority countriesdo not use conventional banking1, it is anticipated that Islamicfinance would seek to reach sections under-represented inconventional banking including the poor, women, youth, ruralresidents and micro and small business.2 In developingIslamic finance products responsive to a range of clients andcontexts, the industry also confronts challenges of ensuring adiverse management workforce at multiple levels to ensureincreased participation from all stakeholders, including women.

Women often face additional barriers in accessing finance,especially entrepreneurs or small start-up firms with unprovenor nonexistent cash flows3. While Islamic finance products aregenerally popular with women, some studies show thatwomen are less likely than men to choose Islamic options(43% to 48%)4, particularly due to lack of information andconfidence. In some markets, where there is gendersegregation or customary obstacles, pioneering models suchas the Dubai Islamic Bank Johara reaches out to womenthrough highly profitable female-only branches. The Islamicfinance industry is becoming more alert to economic power ofwomen who drive aggregate demand and global consumerspending. A more complex endeavour is understandingwhether or what distinctive Islamic finance products orarrangements are sought by women5.

Assumptions ranging from the female emphasis on ethics,likelihood of loyalty to caricatures of risk aversion andambivalence to technology detract from the complex, diverseand rapidly changing profile of women. The growingeducated urban female workforce, for example in the GCC,respond to changing demographics and family structures inmaking economic choices that are vastly different from earliergenerations. Rather than the default ‘family’ category thatsome Islamic finance providers use, involving women indeveloping Islamic finance would likely yield greaterdividends. For a mature and optimising Islamic financeindustry, the other half of the world’s population also needs tobe fully involved. As Stella Cox, MD of DDCAP notes often“women tend to prefer female financial advisers”6.

Obstacles to women participating in multiple roles as clients,consumers, entrepreneurs, investors, managers, advisors,researchers, policy makers and leaders are wellacknowledged. Female participation is not just intrinsicallyimportant for empowerment, family and social justice. RecentMcKinsey research substantiates earlier findings thatbusinesses with the highest proportion of women significantlyoutperform others as they understand and respond tomarkets better7, and are generally more innovative,competitive and are less corrupt. As in the conventionalfinance business, women are notoriously under-represented inthe Islamic finance world - a ‘leaking pipeline’ where womenare forced to walk away owing to a culture of masculinity andlack of opportunities, particularly at senior levels.8

Empower Women, Empower Islamic FinanceFinancial Inclusion and Women’s Participation in Islamic Finance

Professor M. Siraj Sait is the Director of the Centre forIslamic Finance, Law and Communities (CIFLAC) at theSchool of Business and Law, University of East London.A graduate of Universities of Madras, Harvard andLondon, he is a well known human rights lawyer anddevelopment expert who has worked for civil society, theUN and international governments. Published widely inthe fields of human rights, gender issues and Islamicstudies, his publications on Islamic law and gender werehighly ranked for impact in the Research ExcellenceFramework 2014.

The Centre for Islamic Finance, Law and Communities isa part of the University of East London’s Business & LawSchool. A leader in Islamic development law, providingglobal training on Islamic land law, CIFLAC also offersPhD and Masters programmes, short courses andconsultancy in the areas of Islamic finance.

E | [email protected] W | www.uel.ac.ukT | +44 (0)20 8223 3000

Prof Siraj SaitCIFLAC, University of East London (UEL)

This is changing. The breakthroughs that women have madein the Islamic finance industry, particularly in Malaysia andIndonesia as female Bank Governor, CEOs, Sharia AdvisoryBoard members and general workforce is now well celebrated.By replicating these successes in other countries, changeneeds to be expedited and scaled up at all levels. There ismomentum to achieve gender balance and financial inclusion.For example, in a recent interview with the Islamic Banker,Samina Akram notes that the Women in Islamic & EthicalFinance Forum (WIEFF) has over 7000 members9. Projectssuch as the Abu Dhabi Islamic Bank (ADIB)’s TamkeenWomen in Leadership Program to prepare and develop a newgeneration of leaders need to be more widely implementedacross the industry.

The general components of gender responsive strategies atmultiple fronts are already well known. On the supply side,the industry must address the causes of the gender gap andcapacity by refuting cultural patriarchalism and disseminatingpositive Islamic narratives that would promote femaleparticipation. A bigger problem is the pervasive culture ofcorporate masculinity in the finance industry that must becounteracted by asserting strong correlation between genderparticipation and economic competitiveness10. Related feederroutes from education providers to land professionals(planners, surveyors, valuers and lawyers) need to shatter theglass ceilings for women. Practical measures such asincentivising women entrants through internships, enabling aflexible working environment, opportunities for promotion andpolicies geared toward prioritising recruiting, retaining andrewarding female talent.


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1. Honohon, Patrick. 2007. “Cross-Country Variations in Household Access to Financial Services.” Presented at the World Bank Conference on Access to Finance, Washington, D.C., 15 March.

2. Mohieldin, Mahmoud, Zamir Iqbal, Ahmed Rostom, and Xiaochen Fu. 2011. “The Role of Islamic Finance in Enhancing Financial Inclusion in Organization of Islamic Cooperation Countries.” Policy Research Working Paper 4435, World Bank, Washington, DC.

3. OECD, Women’s Access to Finance in the Middle East and North Africa (MENA) Region Draft Issues Paper February 2011.

4. Demirguc-Kunt, Asli, Leora Klapper, and Douglas Randall. "Islamic finance and financial inclusion: measuring use of and demand for formal financial services among Muslim adults." Review of MiddleEast Economics and Finance 10.2 (2014): 177-218.

5. Hayfaa A. Tlaiss. (2014) How Islamic Business Ethics Impact Women Entrepreneurs: Insights from Four Arab Middle Eastern Countries. Journal of Business Ethics. Online publication date: 29-Mar-2014.

“…the pervasive culture ofcorporate masculinity in thefinance industry…must becounteracted by asserting strongcorrelation between genderparticipation and economiccompetitiveness….”

6. Women in Leadership - Interview with Samina Akram: IB Insights © 2009-2015 Islamic Banker Ltd7. Women in Leadership, IslamicBanker.com, 2015.8. Pearl Report 2014, Women GCC.9. Women in Leadership - Interview with Samina Akram: IB Insights © 2009-2015 Islamic Banker Ltd.10.Haussman, Ricardo, L. Tyson and S. Sahidi (2010), Global Gender Gap Report, World Economic

Forum, Geneva.11.Gates Foundation, Islamic Microfinance 2015.12.The Gender Gap Report 2014, World Economic Forum & United Nations Statistics Division,

reproduced from 'PwC WOMEN GCC Pearl Initiative report'

Gender diversification measures potentially benefit not onlywomen and their families but also other under-representedcategories such as the poor, youth and rural residents.Women too have subcategories ranging from the privileged todisadvantaged that may require a differentiated approach.Women in conflicts or disasters or facing health or personalcrisis must be prioritised, as the positive experience withIslamic microfinance demonstrates11. A qualitative growth inIslamic finance would be when its impact ceases to berestricted to well-positioned elites, men or women, andextends its reach universally and to all.

31THE HUM


Islamic Finance

Innovation In

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The calls from within the Islamic finance industry for acomprehensive and publicly-accessible databank of Islamicfinance statistics has been growing louder in recent years.

The timbre of these calls resonate those that have been madefor global unified standards for the Islamic finance industryitself. This perceptible trend has arisen from a fragmentedglobal Islamic finance fraternity desperate to forge a trulyintegrated global industry in the blur of competition and self-interest (for various qualitative and quantitative reasons).

For now, a centralised comprehensive big database forIslamic finance can only be built by a party that is at once astakeholder in the global financial industry and who is, at thesame time, positioned external enough as to have sufficientimpartial oversight. Organisations such as the InternationalMonetary Fund or the World Bank are the closest candidates.

WORLD BANK DATABASEThe World Bank understands the need for this big database.In 2014, the Global Financial Development Report (GFDR) ofthe World Bank released its first version of a publically-availableIslamic Banking database, obtained from financial statements offinancial institutions, central banks, the Islamic DevelopmentBank, and other regulatory and supervisory bodies.

Data is presented at the individual bank level, which is agoldmine for researchers and analysts who constantly seekthe micro-Est of data blocks. However, the first release of thedata offers only a rudimentary set of data: total assets, totalliabilities, total income, and number of branches.

The World Bank, though, has the resources and skillsnecessary to improve on this database (including to constantlyupdate data that will give users what they need to crunchcomparative growth numbers) and most crucially – offer thedatabase as a free publicly-available resource for the widerfinance industry (Islamic or otherwise) to use as it requires,including for human capital purposes.

The first limitation of the World Bank Islamic Bankingdatabase is that it only covers Islamic banks and not allsectors of the Islamic finance industry; it hence misses out onthe capital market, takaful, asset management and fundsdata. However, Islamic banking assets account forapproximately 70-80 percent of global aggregate Islamicfinance assets and so even with only Islamic banking data,users would gain a fairly good estimation of the size of theindustry overall. But sizing the industry is only one use for bigdata and moving forward, the World Bank should build on itsdatabase to include all other sectors of Islamic finance.

The second limitation is that the World Bank can only rely onpublicly-available sources of data provided by central banksand individual financial institutions. Different jurisdictions usedifferent accounting and auditing standards and socomparing like-for-like is a challenge.

Big Data, Big OpportunitiesA Need for Building and Creating Islamic Finance Data

Emmy Abdul Alim is the Editor for Thomson Reuters’Islamic Economy Portal, and Islamic Finance Gateway.Emmy is also the author of “Global Leaders in IslamicFinance: Industry Milestones and Reflections” publishedby Wiley in 2013. Emmy holds an MBA, Finance, fromthe University of Aberdeen; a BA (Hons) in Arabic andIslamic studies from the School of Oriental and AfricanStudies, University of London; and a BA in English andEuropean studies from the National University ofSingapore.

A multinational mass media and information company,Thomson Reuters combines industry expertise withinnovative technology to deliver critical information toleading decision makers in the financial and risk, legal, taxand accounting, intellectual property and science andmedia markets.

E | [email protected] W | www.thomsonreuters.com T | +971 4 391 8300

Emmy A AlimEditor, Thomson Reuters

IFSB DATABASEThere are other data pools serving up Islamic finance numbers.

The Islamic Financial Services Board (IFSB) launched adatabank of industry indicators in April 2015 – the Prudentialand Structural Islamic Finance Indicators (PSIFIs) -- whichcovers 15 of its member countries. Data is collected directlyfrom regulatory bodies and is meant to be updated on aquarterly basis, while adding more countries and sectors. The aim of the PSIFIs, according to the IFSB website, is: “todocument the structural development and soundness ofIslamic finance. This database will help monitor resilience andstability of the Islamic financial system as well as enhancecomparability of Islamic finance within and across jurisdictions.”

IFSB’s PSIFIs provide country-level aggregate numbers, asopposed to the World Bank’s individual bank-level data. ThePSIFIs, however, do provide granularity that the World Bankdatabase does not offer – for example the PSIFIs set out tocapture the number of employees in Islamic banks, and thevalue of financing by type of Sharia-compliant contracts,which is a highly useful resource for users tracking thebalance of debt and equity structures.

DATABASES NOT FREELY OR PUBLICLY-AVAILABLEThere are three other big databases but which are not free toaccess by the public.

Since 2013 Thomson Reuters, in collaboration with theIslamic Corporation for the Development of the Private Sector(ICD), has been producing the Islamic Finance DevelopmentIndicator (IFDI) which is meant to give a more ‘holistic’ pictureof the health and development of the Islamic finance industry;the indicator is underpinned not only by quantitativemeasures of all Islamic financial sectors it also quantifies fourother pillars: knowledge, CSR, governance, and awareness. The most critical drawback of the IFDI is that its raw data isnot available publicly and hence there is no open andtransparent way for the wider industry to assess the veracityand robustness of the indicator.

There are other data pools, but they live behind pay-walls.The Banker’s Top Islamic Financial Institutions Reportprovides bank-level data and Ernst & Young compiles theWorld Islamic Banking Competitiveness Report. Both requiresubscription premiums. These three are not freely andpublicly-available because these companies need to be ableto monetise their databanks.

TRANSPARENCYUntil such time that the World Bank’s database covers allIslamic banks and windows and expands to also cover theother sectors of the global Islamic finance industry, there willbe no centralised, comprehensive and free publicly-availableIslamic finance data to benefit all users of the global financialindustry, including for human capital purposes. The Islamicfinance industry will continue to be associated with somelevel of opaqueness, which is a substantial stumbling blockfor more robust empirical research and analysis.

HUMAN CAPITAL NEEDSOver the last few years, the Islamic finance human capitalspace has seen its fair share of statistics, especially in relationto the ‘talent gap’ or ‘talent need.’

The Malaysia International Islamic Financial Centre (MIFC)projected that for the 2011-20 period, a total of 22,400individuals would be needed to support the Malaysian Islamicfinancial sector; Indonesia estimated that it would need17,000 additional practitioners in the short-term; the UAEprojected about 8,000 new Islamic finance employees for2015 for Dubai alone; and perhaps audaciously, KFHResearch said the Islamic finance industry as a whole wouldneed up to a million graduates by 2020.

These glowing figures certainly uplift the perception of Islamicfinance as a growth industry, but it is ill-advised to acceptthem at face value. We must ask the tough questions: Whatare these projections based on and how can we assess theirmethodology? This, again, takes us back to the issue oftransparency, or lack thereof.

Creating the building blocks of big data available to theindustry would empower HR and workforce intelligencedepartments to use them to better build their respectivehuman capital and talent strategies.

However, gaining a more accurate big picture would requirethe whole industry to subscribe to a two-way process: acentralised big database can give out data to individual usersand institutions for free but more accurate top-line growthprojections for human capital needs in the Islamic financeindustry can only be made if institutions return the favour andsubmit their big numbers to a collective pool that could thenbe re-constructed to form a whole.

Ultimately big data means gaining insights, which willempower the industry and give it a competitive advantage.

The views expressed in this article are the author's own and do not necessarily reflect the views of Thomson Reuters.


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“……glowing [human capital]figures certainly uplift theperception of Islamic finance as agrowth industry, but it is ill-advisedto accept them at face value. Wemust ask the tough questions:What are these projections basedon and how can we assess theirmethodology? This, again, takesus back to the issue oftransparency, or lack thereof”


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Islamic banking assets; spread over 110 countries and 50million customers reached $2.1 trillion last year. This trendreveals that many Muslims and Islamic finance customershave become more affluent and taking advantage of tourism,fashion, health and beauty. In addition they are also armedwith the latest tech gadgetry as part of their daily routines.

Recognised globally as a trailblazing hub for Islamic finance,Malaysia has 140% mobile penetration with 14.3 millionindividuals using internet and mobile banking platforms.Today, Malaysians have a slew of choices via services offeredby banks as well as non-banks in the provision of financialservices to suit their lifestyles, particularly with regards topayment options.

Disruption in lending and peer-to-peer payments by non-financial institutions has brought about many changes to theway traditional banking has always operated. One mainchange is the emergence of digital retail banking. It bringsforward completely new propositions encompassing not onlynew and improved products and service offerings, but alsorequires a more technologically savvy workforce to cater for atechnologically advanced society - one which is very muchdependent on using the smartphone and tablet. In fact, digital banking is much more than mobile and internetbanking on the go; it is also a new lifestyle proposition thatsuits Millennials.

Millennials, unlike any generation before, have little or no desirefor bricks-and-mortar branches to provide them with bankingservices. They are an age group that relies on the ‘digitalwallet’ and producing a digital footprint in financial services.

In response to the digital disruption, at Hong Leong IslamicBank, we have organised ourselves to prioritize thedevelopment of digital products and services to cater for thechanging demands of customers who want better and fasteraccess to digital/mobile payment systems and transactions,without compromising on security.

Adapting to change is imperative to ensure relevance. So wedeveloped mobile payment solutions on our Hong LeongConnect (our digital brand) mobile application allowing usersto do away with ATM cards and pay individuals or merchantsusing their phones. Our digital banking platform has receivedglobal recognition and we believe it epitomises customeroutreach based on relationship building powered byconsumer technology.

We have also extended our mobile banking products andservices across our regional footprints in Malaysia, Vietnam,Singapore, Cambodia and Hong Kong, and are able tosimplify and accelerate the delivery of multi-dimensionalmobility services to our customers.

The New FrontierIslamic Banking & the Digital Revolution

The MD and CEO of Hong Leong Islamic Bank, Raja hasover 20 years experience in banking and finance focusingon areas of Islamic and investment banking. She has beeninstrumental in the digital innovation at Hong Leong,steering the bank’s digital platform. An Adviser to the WorldIslamic Economic Forum Foundation (WIEF), Raja has alsoserved as the Global Head of Islamic Markets at BursaMalaysia, CCO and Head of International Business atKuwait Finance House, Malaysia, CEO of Bank AlKhairMalaysia (previously Unicorn Investment Bank) and Headof Investment Banking at RHB Sakura Merchant Bank (nowRHB Investment Bank). She is a board member of IBFIM(Islamic Banking and Finance Institute Malaysia), and amember of the Islamic Finance Committee for theMalaysian Institute of Accountants. She also sits on theBoard of Hong Leong MSIG Takaful. Raja holds an LLB(Hons) from University of East London (UEL).

Hong Leong Islamic Bank Berhad (HLISB) is a wholly-owned subsidiary of Hong Leong Bank Berhad (HLB), amember of Hong Leong Group Malaysia. HLISB offersIslamic banking and financial solutions including innovativesolutions in structured finance, SME and corporatebanking, personal financial services, Islamic globalmarkets and Sharia advisory. HLISB has received severalglobal recognitions including Deal of the Year 2014 in thecategory of World’s Best Islamic Financial Institutions 2014by Global Finance; Best Islamic Banking Team Malaysia2014 in the category of Islamic Finance Awards 2014 byCapital Finance International and the Best Bank for DigitalInnovation by Asset Triple A Asian Awards 2015.

E | [email protected] | www.hlisb.com.my T | +603 2 773 0637

Raja Teh MaimunahMD & CEO, Hong Leong Islamic Bank Berhad

For Islamic banking and finance, the use of technology is nolonger an option, it’s a necessity. This requires a need for digitalinnovators who are always racing ahead of the curve to ensurethat superior customer experience will win the hearts and mindsof Millennials, who make 60% of the Malaysian population.

With that in mind, at Hong Leong, we have hired from outsidethe industry and among non-bankers who are largely tech-oriented and social media confident to facilitate thedigitisation of our business.

I do not believe it is possible to change the way Islamicbanking and finance currently works, without bringing in suchdiversity of talent, particularly in areas which are simply notendemic to banking.

We feel hiring from outside the banking sector has helped usacquire the right skillsets to facilitate the transformationneeded to serve our customers better. Only by tailoring theway Islamic banks and finance use the process of digitisationto include human capital development, can they meet andexceed their customers’ digital-banking expectations.

The tool of social media forms a crucial channel in reachingout to Millennials, as they demand direct access andimmediate response to their needs, without having to walkinto a branch or call their local bank manager. For manyIslamic banks, including ourselves, this has been ratherrevolutionary as in the past our branches had been the firstand predominant point of contact with customers – now weconnect through technology platforms.

Ultimately, Islamic banking must recognise that digitaldisruption is real.

In order to respond robustly and collectively, the industryneeds a game-plan, which includes creating a digital strategyfor customers and the operations of the organisation.

When it comes to the Islamic banking and financial sector,they must be clear about the shifting of resources, technologyand people – with people playing a vital part.

To create the best digital footprint, our industry must begin tolook outside the box. If you want technically skilled andexpert talent, then maybe it's time we began looking at talentfrom outside the core banking fraternity.


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© 2008–2015 We Are Social Ltd

"I do not believe it is possible tochange the way Islamic bankingand finance currently works,without bringing in such diversityof talent, particularly in areaswhich are simply not endemic tobanking"

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Edward Bernays, considered by many to be the father ofPublic Relations, published a book in 1928 calledPropaganda. In it he shed light on the technique that he hadpioneered of shaping and manipulating public opinion, whichhe called ‘engineering consent’.

Interestingly, in a revised version of Bernays' book, publishedin 2004, Mark Crispin Miller provides an introduction; in whichhe cites how the term propaganda was coined in 1622 byPope Gregory XV and the Vatican. Their mission was toestablish The Office for the Propagation of the Faith(Congregatio de propaganda fide) and to spread Christianitythroughout the world. Bernays’ work, Max Weber’s book TheProtestant Ethic and the Spirit of Capitalism, and the strategicgalvanisation of public opinion during the First World Warsignalled the migration of Christianity into the engine room ofbusiness, driven by branding and PR. Heaven on earth andsuccess in the hereafter was to be achieved through thecreation of global brands and corporations, as vehicles ofworship.

Decades later, this was also a concept that linguist,intellectual and political activist Noam Chomsky revisited witha much more chilling appraisal - in his documentary and bookManufacturing Consent. Similarly, in Edward Said’s bookOrientalism: they and other scholars present compellingtreatises in which they express their concerns on the effectsof Western foreign policy on perceptions of the East, and inparticular Muslim and Islamic thought.

It is under the shadow of these widely expressed concernsthat I reflect upon the challenges faced by Islamic finance andbanking when trying to break free of these invisible handcuffs.A key question that follows these thoughts is - beyond whatappears to be constant navel-gazing, where industryprofessionals and scholars work on perfecting Shariacompliant product offerings: how much time is dedicated tobrand building, public relations, and seeking consumerinsight?

In order to celebrate the spirit of Muslim spirituality, harnessprofiting from Prophethood, and ultimately win the hearts andminds of not only the faithful, but also wider communities, thisis a necessary pursuit, and I would argue a critical successfactor that is often overlooked. Comparable to other businessfunctions, how many dedicated experts and courses are therein the market? Sadly, the answer appears to be few. There seems to be a sentiment of Sharia compliance andcompetitive product offerings almost selling themselves.However, I argue that if this mindset were applied in thetechnology sector to smartphones for example, then it wouldlead to failure. Functional factors are a given, and productinnovation is expected - branding and social engagementdeliver exponential success.

Islamic Finance Marketing Put Branding in the Driving Seat

Dr Jonathan A.J. Wilson joined the University of Greenwichin 2008, where his area of specialism is Marketing:Advertising, Branding, Communications, and Digital. With acareer spanning over 20 years, he has produced over 100conference talks internationally and 200 publications. DrWilson is Editor-in-Chief of Emerald Publishing Group’s, theJournal of Islamic Marketing; an Executive Trainer for AlJazeera Media Network in Qatar; and an Associate Memberof the UK All Party Parliamentary Group (APPG) on IslamicFinance and Diversity in Financial Markets.

London and Kent based university offering high-qualityteaching in a wide range of subjects including architecture,business, computing, education, engineering, humanities,maritime studies, natural sciences, pharmacy and socialsciences.

E | [email protected] W | www2.gre.ac.ukT | +44 (0)20 8331 8000

Dr Jonathan A.J. WilsonProgramme Director, Postgraduate Marketing suite,University of Greenwich, London

My arguments are simple:

Everyone is talking about branding and talking in brands. Ofall the areas of business it seems to make sense to focus onthe brand – as brands are meaning creators, languageshapers, and game changers. If you get branding right, thenyour product or service offering stands out and it cancommand a premium. If you get it really right, then itweatherproofs your activities from recession, it can allow youto carry over equity and brand currency into new productlines and markets, and your brand may just become a wordthat enters the dictionary as a new verb or noun – for exampleto ‘Google’ or ‘Wiki’.

Branding is one of the most popular business courses inbusiness schools today. Students all over the world aresigning up and business people are picking up books off theshelves of airport shops to sharpen up their thinking andpractice.

However, Western brands, advertising agencies, marketingprofessors, brand gurus, and celebrities dominate Globalrankings; and English is the lingua franca of global business.Inevitably, this means that success for ‘the rest’ is judged nextto that of the West.

With 60% of the 7 billion world’s population hailing from Asia,notably with Indonesia being the most populous Muslimnation, alongside other widely practiced religions throughoutAsia, a similar pattern is observed. In short, the majority of theworld draws from religious guiding principles that areunderrepresented in brand theory, development and practise. It is for these reasons that the Islamic finance and bankingindustry needs to focus its attention on developing humancapital, expertise and excellence in this field.

At the time of the Prophet Muhammad (peace be upon him)his leadership assured a clear and consistent message fromone source, and executed branding par excellence.However the landscape today is much more complicated andlacking any real brand leadership.

Thought and practice should be restricted to the notion thatyou can brand a person, product, service, experience,company, city, nation – something with a shape and form, andsomething that you can own, but not wider Islamic concepts,because their ownership is shared and leaderless. Rather,these ‘Islamics’ rely upon strategic public relations,punctuated with brands – both of which need financialinvestment and a new generation of qualified experts.

Therefore, the focus should be on developing professionals,scholars, and corporate brands that collectively bringmeaning, new concepts, and exemplars of excellence. Futurecompetitive advantage will result from authentic brands thatresonate with more emotional and human traits, sophisticatedstorytelling, and Islamic attributes derived explicitly fromguiding first principles - as opposed to upstream consumertargeting hung on basic classifiers of demographics andgeographics; and cosmetically adapted advertising.

So, the practise of branding, public relations, marketingcommunications, and consumer behaviour is due an injectionof fresh blood from a new generation of qualified experts. Thisneeds financial investment and new curricula. Islamic financeand banking are not only the powerhouse of an Islamiceconomy, but this fraternity too needs to focus its attention ondeveloping human capital and excellence in branding, PRand marketing, as essential core business functions. Too longhave courses and vacancies concentrated on finance andbanking at the expense of expertise in these other areas.

“Islamic finance and banking arenot only the powerhouse of anIslamic economy, but thisfraternity too needs to focus itsattention on developing humancapital and excellence inbranding, PR and marketing, asessential core business functions”


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Knowledge

Redefining Islamic Finance


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“London with the support of the British governmenthas managed to successfully become one of theleading Islamic finance centres in the world”


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Islamic finance has grown at an exponential rate over the pastseveral years. The UK Islamic finance sector, often cited asthe leading western country with London as its hub, isreported to be over US $20 billion in terms of assets

A growing portion of large accounting firms, financial servicescompanies and banks have Islamic finance departments. Withthe growth of the industry comes the need for more experts.

Are human resource investments keeping pace with thisgrowing industry? Where will the innovations come from interms of advancing knowledge and best practice in this field?Is it good to have a sector very much based on religiousdoctrine driven by a class of professionals who often have notstudied Islamic fiqh? And where and how should those whoaspire to be Islamic finance professionals train? This essay sets out to provide an overview of the challengesthis growing sector faces in terms of developing the humanresource capital that will not only work in this industry, butensure its integrity and innovation.

In 1977, there was a conference held at King Abdul AzizUniversity in the Kingdom of Saudi Arabia to explore thechallenges of education in the Muslim world. Thesechallenges were a product of the dual education system thathad evolved with a national system based on the Britisheducation system and a religious system based on Islam.This conference called for major reforms in the educationsystem in Saudi Arabia in light of the need to embrace theirIslamic culture and society in a post-colonial period. Today,we see a similar challenge emerging around the study anddiscipline of Islamic finance. Although the subject matter istaught in a number of universities throughout the worldincluding a high number of programmes located in the UK,there is a debate about whether such programmes really offera “third way” and if the curriculum is grounded sufficiently inthe doctrine of Islam.

London and the UK make for a telling example of the dilemmathat Islamic financial education is facing. London with thesupport of the British government has managed tosuccessfully become one of the leading Islamic financecentres in the world. It was the first western sovereign nationto issue a sukuk in 2014. This issue was not only impressive,but the structuring of the issue added to the notion thatLondon is a centre for Islamic finance. What is also importantin the case of the UK is that Islamic finance sits alongsideconventional banking. Consequently, there is significantpressure in this growing industry to create financial innovationsthat will allow it not only to contribute as an alternative toconventional financing, but compete. Given the fact thatIslamic financial instruments must be Sharia compliant thescope for new financial derivatives can appear limited.Consequently, we cannot continue to have this significantindustry understood and engaged in by the self-selected few.Therefore, it is not surprising to find that many of the“trailblazers” of this industry were trained as conventionalbankers and then learned on the job about Islamic finance.

Islamic Finance EducationFit for Purpose?

Professor Colton leads on academic matters with aparticular focus on research, innovation, studentrecruitment strategy and enterprise development at theUniversity of East London. She has published andlectured on issues relating to education, having spokenat higher education institutions in Brazil, China andIndia. A specialist on Middle Eastern economies, Noraspeaks fluent Arabic and has conducted fieldwork inEgypt, Jordan, Syria, Lebanon and Yemen. She receiveda Ph.D. from St. Antony’s College, Oxford University.

The University of East London (UEL) is a vibrant,modern university with an educational heritage datingback to 1898. Its two campuses in Docklands andStratford are home to 19,000 students from more than120 countries. It is London’s leading university for civicengagement and enjoys a global reputation for thequality of its research.

E | [email protected] W | www.uel.ac.uk T | +44 (0)20 8223 3000

Nora Ann ColtonProfessor & Deputy Vice Chancellor (Academic), University of East London

Today however, it is estimated that there are over thirtymasters’ programmes in Islamic finance in the UK. Theseprogrammes are postgraduate studies aimed at people whohave completed an undergraduate degree. In addition toIslamic finance there are degrees in Islamic law andeconomics as well. The UK prides itself in being a place forIslamic finance education and many institutions of highereducation have found it a good way to attract internationalstudents from Muslim countries. There are also a number offoundational courses that offer Islamic finance qualificationsfor those who want a bridge from conventional financialeducation into the industry through a professionalqualification. Institutions also offer training certificates inTakaful and Sukuk.

In spite of all these programmes, the level of education oftenis Islamic finance light. There is concern that many of theseprogrammes lack the rigour of a conventional finance degreeand, subsequently, are not valued in the labour market evenfor jobs in the Islamic finance industry. There is also criticismof these programmes because they often do not have muchinteraction between practioners and academics. As a result,students often either have a basic understanding of Islamicfinance or a very scholarly understanding. Both groups arenot meeting the industry’s needs. Law faculties are better interms of Sharia training; however, the education sector ispopulated with business and finance programmes where theIslamic finance portion of the programme is a light touch at best.

The country that has been more proactive in this space isMalaysia. Malaysia is one of the few countries that not onlyrecognised this need for human resources for the industry,but has invested in them heavily. Almost all the institutions ofhigher education in Malaysia offer at least some modules orprogrammes that contribute to this industry. There hasrecently been a push from Malaysia to develop standards fortraining for the industry. The Finance Accreditation Agency(FAA) was established to set standards for the industry.Although on the one hand, this appears attractive to have astandardisation of training and degrees, there is the starkreality that the Muslim ‘World’ community is not so homogenousin its interpretation of religious doctrine particularly in the caseof what constitutes Sharia compliance.

There are also inherent risks for the industry of focusing toomuch on the pedagogy without recognising the uniquechallenges teaching Islamic finance has in a conventionalinstitutional setting where many of the instructors may not beexperts. Other challenges are that the curriculum remains tootheoretical when the industry is calling for more practicalbased education.

The challenge for Islamic finance is providing students withthe right instruction so they can develop and identifyappropriate solutions for this emerging industry. All of theseissues must be addressed if Islamic finance is to grow from abolt-on industry to conventional finance to somethingsustainable and integrated. We need a concerted effort notonly on the part of the industry, but governments thatrecognise that Islamic finance is part of a wider discourse ofcreating financial choice in a sector that has been dominatedby asymmetrical relationships. Islamic finance also finds itselfin a world where digitalisation is opening other alternativefinancing routes, so if we are going to educate the nextgeneration about crowd funding and microfinance, we needto ensure Islamic finance has a place in the classroom as well.

Consequently, we cannot continue to have this significantindustry understood and engaged in by the self-selected few.We need a much more ambitious approach that sees it addedto textbooks and a much more integrated part of aneducation on the financial sector. It will be through thisapproach and a better understanding of the context of thebasic principles of Islamic finance that practitioners,employers and academics can ensure the standards andquality of the offering.

“…..if Islamic finance is to growfrom a bolt-on industry attachedto conventional finance tosomething sustainable andintegrated….we need a concertedeffort not only on the part of theindustry, but governments thatrecognise that Islamic finance ispart of a wider discourse ofcreating financial choice in asector that has been dominatedby asymmetrical relationships“


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It has almost become a catchphrase within Islamic financecircles that quality talent is difficult to find. Althoughpersonally, this is hard to fathom; considering the number ofbright, young individuals keen on exploring prospects withinthe industry, and the number of banking stalwarts already partof the Islamic finance ecosystem. Therefore, is this merely amatter of perception? Or perhaps a real stumbling block,hindering the growth of the Islamic finance industry? Basedon our own research at FAA (Finance Accreditation Agency),it seems that although quality talent is aplenty, there arediffering levels to their knowledge, which sometimes do notsatisfy the needs of the Islamic finance industry at thatparticular point of growth.

It is therefore important for us as industry stakeholders toprovide guidance to Islamic banking and finance to identifythe skills gaps and enable further growth. As with any nascentsector, these gaps are visible across the board – whether it bein terms of product innovation, or market penetration. Oneelement that is unique to Islamic finance compared to theconventional banking system is Sharia law and Islamicjurisprudence, which essentially governs the entire directionand structure of the industry. This is therefore another aspectthat must be taken into consideration when analysing theknowledge gaps within the industry.

SKILLS GAPSA Workforce Planning Study by Deloitte and the DubaiInternational Academic City (DIAC) identified in a survey of 60banks, that 50% found it difficult to hire fresh graduates forentry-level positions, while 23% were unable to find suitablecandidates for mid-level roles and 5% were struggling to fulfilsenior-level positions. This was attributed to a lack of training,experience and qualifications1.

In our own Talent Development Survey 2014, FAA identifiedseveral gaps in key competencies for Islamic financeprofessionals. Out of the 297 individuals surveyed – rangingacross a variety of sectors from Takaful to Asset Management;Strategic Planning and Thinking, Innovation and ProductDevelopment and Sharia Expertise were cited as the top threeskills which are currently most lacking in the talent pool(see fig.1).

Citing the report, we can see, although a deep and realappreciation of the fundamentals of Islamic finance is needed,respondents are demanding more Shariah experts, not justIslamic finance experts, with others identifying Shariaprinciples and relevant Sharia qualifications as being critical.A further 28.4% highlighted the need for specific technicalIslamic finance knowledge: including Islamic financecontracts, Fiqh Muamalat and additional practical experience.

Raising the BarQuality Talent Can Pave the Way for Growth in Islamic Finance

With a 20 year record in leadership, developing talent forthe financial services industry, Dr Amat Taap Manshorhas been the CEO of the Finance Accreditation Agency(FAA) since its inception in 2012. Prior to joining FAA, DrAmat was the Chief Accreditation Officer and SeniorDirector of the Asian Institute of Finance (AIF). He hasalso held senior positions in institutions of higherlearning and several multinational companies providingstrategic business planning and leadership. His areas ofexpertise include human capital development, qualityassurance and best practices, as well as learning anddevelopment.

The Finance Accreditation Agency (FAA) is responsiblefor raising the standards and quality of professionallearning and development in the financial servicesindustry. FAA aims to create highly skilled andinternationally mobile professionals for the globalfinancial services industry by providing learningprogramme evaluation, accreditation, and institutionalaudits that will contribute towards the development ofquality assurance and promotion of learning initiativeswithin the financial services industry. FAA is anindependent quality assurance and accreditation bodysupported by Bank Negara Malaysia (Central Bank ofMalaysia) and Securities Commission of Malaysia andexecuted by a committee of technical experts, industryprofessionals and leading academics from theinternational financial services industry.

E | [email protected] W | www.faa.org.my T | +603 2 788 1212

Dr Amat Taap ManshorCEO, Finance Accreditation Agency (FAA)

There is also an issue of general education, with 4.3%identifying academic qualifications as currently lacking, and areseeking employees who have graduated from the appropriatefield of study. This is where the benchmarking of the relevantknowledge comes into play, and why accreditation is anincredibly crucial function in furthering the growth of the Islamicfinance industry.

ACCREDITATION AND GROWTH OF THE INDUSTRYAccreditation is a form of acknowledgement, and in essencesignifies the assurance of quality in the products and servicesrendered by an educational institution and training providers.It creates a sense of confidence amongst employees hiringprofessionals who have undergone training by an accreditedinstitution, and an assurance amongst students that theirprogramme of choice is relevant to the industry they arelooking to contribute to.

Of course, what forms the basis of accreditation arestandards, which provides direction to course developers interms of design and content, and assure employers thatprospective and current employees have sufficient knowledgein their field of expertise. It is with this in mind that FAAcreated the FAA Learning Standards for Islamic Finance,which covers Islamic Banking, Capital Markets and WealthManagement, and Takaful. Within every Standard, areembedded the key principles of Sharia and Compliance,alongside ethics and leadership; all in the aims of creatingquality talent to serve the industry.

HUMAN CAPITAL DEVELOPMENTThe growth of the Islamic finance industry and its humancapital base have to be in sync now, more than ever, as theindustry reaches new heights in market penetration andparticipation from larger commercial banks. As growthunfolds with every passing day, new issuers and investorsfrom previously untapped markets are also entering thepicture, and a robust pool of talent is needed to support thisgrowth and increased interest.

The need to have a standard minimum benchmark in Islamicfinance is therefore becoming more evident, and this is alsocatalysed by the fact that more individuals are practicingacross borders. Malaysia, for instance, has always been ahotbed for employers seeking talent in Islamic banking andfinance due to the maturity of the market, and benchmarkingIslamic finance knowledge will create a similar assuranceamongst employees looking to hire from other marketsworldwide. This will therefore enable more cross-border talentmobility, and allow the export of talent into new markets.

The key here is to create a sustainable ecosystem for Islamicbanking and finance to thrive, while allowing for the idealconditions to support a truly global economy. Quality talent istherefore key to enabling future growth and continuedinnovation to support this vision.


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Source: FAA Talent Development Survey 2014

1 Banks face Skills Gap in Islamic Finance (Zawya, 2013) Url: https://www.zawya.com/story/Banks_face_skills_gap_in_Islamic_finance-GN_19112013_201168


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Sharia ScholarsThe Human Capital Imperative

A Professor of Islamic Capital Markets, ResearchMethodology and Contemporary Issues in IslamicFinance at the International Islamic University Malaysia(IIUM), Dr Rabiah has also served as a member ofSharia committees on various financial institutions.Currently, she is a member of the Sharia AdvisoryCouncil of Bank Negara Malaysia (Central Bank ofMalaysia), Malaysian Securities Commission andLabuan Financial Services Authority (Labuan FSA), andan independent Sharia Advisor for Islamic securities(sukuk) issuance, approved by and registered with theMalaysian Securities Commission.

International Islamic University Malaysia (IIUM) aims tobe a leading international centre of educationalexcellence which seeks to restore the dynamic andprogressive role of the Muslim ‘Ummah’ in all branchesof knowledge and intellectual discourse. The universityoffers bachelors, masters degree and PhD coursesacross its 13 faculties and is considered one of the mostprominent universities in Malaysia with affiliations acrossthe academic world.

E | [email protected] | www.iium.edu.my T | +603 6 196 4000

Dr Engku Rabiah AdawiahSharia Scholar & Professor at IIUM Institute of Islamic Banking and Finance (IIiBF)

BACKGROUNDIt is not an overstatement to suggest that Sharia scholars arethe backbone of Islamic finance. Their presence and effectivefunctioning confer the needed validation and credibility toIslamic financial practices, ensuring that they stay true to theirlabel and original raison d’etre.

In the early days of Islamic finance, there were admittedlyonly a handful of Sharia scholars who were active in the field.They were the pioneers in terms of Sharia advisory andresearch in Islamic finance. They literally grew together withthe young industry, guiding it through obstacles andchallenges; putting their heads together with the industryplayers to come out with solutions to meet the diverse needsand challenging demands of the market. The interactionbetween the Sharia minds and the market players has alwaysbeen very dynamic though at times difficult, but eventuallysatisfying and productive. We see the evidence of thisthrough the many ‘firsts’ in the market in terms of productbreakthroughs and innovations. There were admittedly a lotof success stories and some pitfalls in these groundbreakingefforts. Ultimately, we cannot but commend the hard workand tireless efforts by these pioneers, without whom, Islamicfinance would not be where it is now.

CHALLENGES FACING SHARIA SCHOLARS INISLAMIC FINANCEAs Islamic finance continues to grow and mature, we continueto hear complaints about scarcity of Sharia scholars especiallywith the increased demand and complexity of the Islamicfinancial market. This is despite the rapid churning out of newSharia graduates with Islamic finance specialisations throughvarious universities and colleges in recent times. In terms ofnumbers, Zawya keeps a database of over 400 Shariaadvisors1, with only 20 of them serving 55% of the industry2.This leads to the realisation that it is not just about the numberof Sharia-qualified persons and graduates, but more of howthey are able to meet the levels of expertise and competencyexpected by the market. Islamic finance has advancedtremendously in the past decades. The technical diversity andsophistication of product offerings may be quite intimidating tonew entrants, despite them having the necessary Shariaqualifications. The market players have also gained substantialexperience and know-how that naturally raise theirexpectations on the level of competency, seniority andexperience of the Sharia advisors whom they would like towork with.

Hence, whether we like it or not, there is a rising standardexpected from Sharia scholars before they are able to giveindependent Sharia advisory or supervisory services to IFIs.Sharia scholarship is a must, but it is not the onlyrequirement. Sharp and inquisitive minds that can quicklygrasp technical aspects of finance and to some extent legalnuances are always the preferred traits. Past exposures tosimilar financing structures and transactions are always abonus. The ability to keep track with new developments andmarket up-dates is another valued trait in a Sharia scholar.

Given the current approach towards Sharia education andtraining, it may require a few good years of experience beforea new Sharia graduate can achieve the required stature toqualify to sit on Sharia boards of Islamic Finance Institutes (IFIs).

NURTURING NEW TALENTSNonetheless, the good news is, nowadays Sharia scholarshipis not limited to Sharia boards only. As time passes and themarket grows far and wide, we realise that the pattern of needfor Sharia trained individuals has diversified. In the past,Sharia scholarship was needed mainly in the advisory orsupervisory capacity, which is independent and external fromthe IFI’s workforce. However, with the expansion of Islamicfinance, IFIs start to recruit Sharia trained personnel directlyinto their workforce to meet internal needs as well asregulatory requirements. For example, when the CentralBank of Malaysia introduced the Sharia governanceframework (SGF) of 2011, the recruitment of Sharia trainedpersonnel became necessary to fill in the tasks required bythe four functions under the SGF, i.e.: Sharia review; Shariaaudit; Sharia risk management and Sharia research functions.In addition, we also see Sharia trained persons beingengaged directly in various departments within the IFIs, suchas, product development and structuring teams.

Thus, fresh Sharia graduates can look forward to a promisingcareer in IFIs, where they can get brilliant exposures andopportunities to build-up their expertise and know-hows. BeingSharia qualified personnel within the IFIs, they will be the mainlink between the IFIs and their Sharia boards. The regularinteractions between the young Sharia executives and thesenior and more experienced Sharia board members serve asvaluable ‘mentoring’ that will nurture the young executives intosecond and third generation scholars of the future.

Universities and education providers can also speed up thepace of talent development through provision of goodprogrammes and modules that not only impart the basicknowledge and skill sets, but also blend in elements ofanalytical thinking and problem solving skills in their curricular.Industry linkages and internship programmes would definitelyhelp in minimising the gaps between the industry andacademia. In addition to that, the inculcation of positiveattitude, resilience and stimulation of the inquisitive minds inthese graduates will work wonders in getting the right aptitudeand propensity that is much valued by the market.

CONTINUOUS DEVELOPMENT AND ENHANCEDPROFESSIONALISMAdditionally, the continuous development of veteran scholarsin the field should not be neglected. They must also build uptheir talent, knowledge and professionalism throughcontinuous learning and re-training so as to remain relevant inthe fast growing industry. In Malaysia, the Association ofSharia Advisors in Islamic Finance (ASAS) is the first industry-based body established with the main objective to be a globalentity to ensure professionalism among Sharia advisors andexperts of Islamic finance. ASAS was officially registered on12 April 2011 and had since worked hard towards promotingitself as the body responsible for enhancing qualification andprofessionalism of Sharia advisors, locally and internationally.This is to be achieved through training and ContinuousProfessional Development (CPD) as well as the fostering ofprofessional relationship and establishment of a strong socialweb for Islamic finance practitioners.

1. Source: www.shariahscholars.com 2. Source: Funds@Work


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“The continuous development ofveteran scholars in the field shouldnot be neglected. They must alsobuild up their talent, knowledgeand professionalism throughcontinuous learning and re-trainingso as to remain relevant in the fastgrowing industry”

FEMALE PARTICIPATION IN SHARIA SCHOLARSHIP INISLAMIC FINANCESharia scholarship is never the exclusive right of one genderto the exclusion of the other. The history of Islam is evidenceof this fact. Islamic civilization of all ages had their fair shareof female scholars who had contributed well, becamerenowned teachers and whose views were referred tothroughout the Muslim world. Thus, gender should never bea hindrance in advancing in this sphere. Equal opportunitiesshould be given to all, regardless of gender. If anydiscrimination is observed, it is more of culture orconvenience, rather than religion. If this does happen, effortsmust be made to overcome the problem. At the end of theday, Sharia scholarship in Islamic finance should be purelybased on merit and professional qualifications, not gender.


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Islamic Finance Human CapitalTalent Development Goals


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Human capital is the greatest driver of success andinnovation for an organisation. Islamic finance must look topreserve, maintain and develop this critical resource and indoing so build a more productive, nimble and innovativeindustry. Simply Sharia Human Capital (SSHC) hopes oursurvey will be a step closer to achieving that objective

through the setting of goals. Our online survey was createdthrough the ideas and support of industry stakeholders,practitioners and educators invested in the future of humancapital in Islamic finance and the Islamic economy. Thissurvey was conducted among these practitioners across theboard in the IF space.

continues on next page >>

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ISLAMIC FINANCE TALENTDEVELOPMENT GOALS (IF –TDGs)BENCHMARKING GLOBALISLAMIC FINANCE EDUCATION

l Form a global network of industry associations todevelop and agree on professional standards

l Create a quality code with set criteria to maintainIF education standards; defining (a) the conceptualframework for the academic subject; (b) the curriculum, assessment, consistency and delivery of the programme; and (c) the competencies and skills graduates are expected to gain against the ‘real’ needsand skills gaps of the industry

l Every IF course should commit to signing up to at leastfive criteria benchmarks by 2020

SHARIA SCHOLAR DEVELOPMENT

l Collaborate with international Sharia regulators and industry bodies to create a framework offering CPD training to all Sharia scholars

l Create a pre-requisite for Sharia scholars to take a set number of CPD hours a year

l By 2020 make it mandatory for Sharia scholars on boards and working in their individual capacity to be up-to-date on industry developments. Furthermore, Central Banks and regulators of local economies to ‘screen’ Sharia Supervisory Board’s (SSB) and individual scholars with a set criteria of minimum financial qualifications covering the relevant industries and/or sectors in which they are seeking to serve; ensuring scholars are aware of the latest industry developments and trends

l By 2020 central regulators for Sharia scholars to have all potential scholars registered at their platform and set a quota for local Islamic Finance Institutes (IFIs) to have their Sharia Supervisory Board (SSB) to mentor the junior scholars over a two year period

ISLAMIC FINANCE DATA BUILDING

l Create strategy, policy and governance to breakdown data in different areas within HR functions relating to human capital: skills shortage, capacity, recruitment projections, means of recruitment, salary guide according to job specificity and scale, dedicated hiring managers, interview application process, interview process etc

l IBF institutions should commit to sharing data for research and development purposes via their websites, annual reports or through a collective forum for Islamic finance human capital for example, creating a cross-border intranet portal to share information. Relevant datacan be compiled and uploaded onto this portal for greater accessibility through utilisation of NDA and/or domestic patent rules to prevent intellectual theft. This in-house/cross-border R&D data sharing is exceptionally important for banks to meet the growing threat from fintech

l Create Data driven marketing strategies. Market research is pertinent to measure and assess consumer needs and preferences across segments given change and digitalisation of the global landscape. Market research needs to be based on a sampling frame for

greater accuracy that can only be in existence if thereexists relevant transparent data

MARKETING, PR & EDUCATION

l Make marketing and branding a key function of your business

l Build Islamic finance perception; raising awareness of the sector through its business and shared DNA; create an industry narrative inclusive of Islamic attributes, highlight crucial values of responsibility and be creative

l Create and promote a framework consistent with internationally recognised best practice in the overall global finance industry; promoting transparency, governance, openness etc

l Educate consumers about ‘brand Islamic finance’ through the underlying principles of the proposition; use technology and innovative platforms and channels: blogs, social media, events, media, corporate social responsibility (CSR), training; create brand ambassadors, thought-leaders; motivate staff,

potential employees and Millennials

FEMALE PARTICIPATION IN ISLAMIC FINANCE

l Make female inclusion in the workplace a strategic priority at all levels

l Commit to supporting female business owners through Sharia-compliant funding, start-up surgeries, mentoring, specialist relationship managers and dedicated networking events

l Build inclusive workplace policies for women including incentivising female entrants through internships, offer flexible hours, identify and remove obstacles to female inclusion in the workplace, train women employees to harness female business owners and create career pathways to leadership

l Set and monitor annual targets that increase the number of women at all levels of the organisation

HUMAN RESOURCE BLUEPRINT

l Make HR visible, aligned and proactive as a strategic partner in the business needs of IF institutes

l Identify and establish employee development needs, training shortcomings, performance gaps and an annual development process for employees

l Translate HR activity into a detailed process: having the right number and level of people, in the right structure and location, supported by the right data andtechnology

SUPPORTING ENTREPRENEURSHIP

l Commit to start-up hubs, mentorship schemes for entrepreneurs; allocate dedicated advisors within institutes to help develop ideas, finance scholarships for entrepreneurs and nurture entrepreneurship and social enterprise as a part of CSR

l Banks and other Islamic institutes must be proactive in sponsoring incubators for entrepreneurs, digital innovations across fintech and workshops to help entrepreneurs in developing and bringing ideas to market

l Work with Government to pool funds specifically for the purpose of encouraging, supporting and nurturing Islamic entrepreneurship

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TALENT & LEADERSHIP PROGRAMMES

l Commit to Talent Development, making it a part of the company culture, HR strategy; aligning it to the workforce skills gap, training support, mentoring and succession plans

l Create Pilot Leadership Programmes with an ‘open call’ to employees looking for fast track leadership pathways. Include training and orientation, increased awareness of structures and processes, strategic input/direction and knowledge and understanding of the key issues confrontingthe organisation and surrounding business landscape

l Collaborate to create Internship/Industrial Placement Programmes of varying durations (3 months, 6 months, 1 year) which allow rotation between institutions – for instance in the UK, 15-20 interns could rotate among the six fully-fledged Islamic banks working across functions and departments from retail, treasury, asset management, corporate banking/financing, legal, compliance, operations, Sharia etc

l Pool funds to create a ‘Graduate Programme’- similar to the Waqf Fund created by Central Bank of Bahrain (CBB)

as an initiative to sponsor, nurture and train graduates; partnering with top universities and selecting candidates through a rigorous process


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Simply Sharia Human Capital (SSHC) is a recruitment portal solely dedicated to Islamic finance jobs and knowledge; connectingthe global jobseeker with Islamic finance employers and educators on one online site.

We offer an ‘end-to-end’ solution; engaging employers with candidates and enabling site users to enhance their knowledge,seek career advice and connect with jobs directly. Our aim is to nurture and develop the global IF industry throughcollaborations, training, outreach, thought-leadership and international talent development.

SSHC is led by Faizal Karbani and Nyra Mahmood, who together impart commercial awareness, Islamic finance knowledgeproficiency, marketing, brand awareness and strategic thinking.

SIMPLY SHARIA HUMAN CAPITALNurturing and connecting talent for the Islamic finance industry

The Station Masters House168 Thornbury Road Osterley Village, LondonTW7 4QE

t +44 (0)20 8945 3786e info@simplyshariahccomw www.simplyshariahc.com

RecruitmentOur goal is to facilitate the right match between candidate and employer,creating opportunities through a job vacancy platform dedicated to Islamicfinance, where the employer can directly connect with the jobseeker.

SSHC TrainingWe offer in-house training programmes for both the Islamic FinanceQualification (IFQ) and Bespoke Programmes, seminars and workshops,which are tailor-made for both individual and company needs.

Global Islamic Finance EducationWe have built an international roadmap of educators offering training anddegree courses from across the globe. This directory of courses will allowusers to pick the relevant learning opportunity from anywhere in the world.Our database is a work in progress and continuously growing.

Core Services

#ShapingTheFuture #TDGs