Indonesia: BI urges Islamic finance industry to enhance human capital

Bank Indonesia ( BI ) has urged Islamic financial institutions to enhance their human capital in order to improve competitiveness and sustain the industry’s rapid growth.

"If we want to see the Islamic financial sector on par with its conventional counterpart, it is relevant to improve the human capital," BI deputy governor Hendar told a seminar on human capital development held at BI’s offices in Jakarta on Friday.

Hendar added that Islamic financial institutions had achieved significant growth, surpassing the growth of conventional financial institutions even during the global economic crisis.

Despite this achievement, the industry was still facing a low quality of human capital, resulting in relatively low operational efficiency and poor product knowledge, he said.

"We should pay more attention to the low quality of human resources. This unfortunate phenomenon has affected many countries, including Indonesia," he said.

To enhance human capital, industry players needed to address crucial factors. Universities needed to provide teaching materials that combined Islamic and regular education with technology-based development and needed to build strong cooperation with global institutions.

Meanwhile, Ali Ghufron Mukti, director general for science, technology and higher education at the Research and Technology and Higher Education Ministry, added that to achieve global competitiveness, industry players needed to improve technological readiness, innovation and higher education.

"In the era of ASEAN Economic Community, human resources, undoubtedly, play an important role to enhance the competitiveness of the country. Hence, the ministry encourages individuals and organizations to conceptualize and make strategies to enhance human capital," he said, adding that vocational education was necessary beside academic education.

He said priority sectors to focus on were energy and renewable energy, health care, transportation, defense and maritime industries.

(The Jakarta Post / 13 May 2016)

---
Alfalah Consulting - Kuala Lumpur: www.alfalahconsulting.com
Islamic Investment Malaysia: www.islamic-invest-malaysia.com

Global Islamic finance industry assets over $2 trillion in 2014

Total assets under management in the global Islamic finance industry was in excess of $2 trillion (about N394 trillion) by the end of 2014, the director-general, Securities and Exchange Commission, SEC, Mounir Gwarzo, has disclosed.

Mr. Gwarzo said the industry growth had continued to flourish with the globalSukuk market recording remarkable expansion after the 2008 global financial crisis.

Sukuk is an Islamic finance certificate – similar to a bond in Western finance – that complies with Islamic law, Shariah.

The director, who spoke at the second Regional Roundtable on Non-Interest Capital Market in Sokoto on Monday, said annual issuances from Sukukinvestment had grown from $15 billion in 2008 to almost $120 billion in 2014.

Mr. Gwarzo said the focus of the roundtable was on Sukuk – one of the most important components of the Islamic financial system.

He said while most people identify capital markets as an important source of medium-to-long term capital, few realise the amazing potential of capital markets to serve as a catalyst for financial inclusion.

“SEC is determined to unlock this potential of the Nigerian Capital Market.

He said in particular, SEC was aware of the need to deepen the non-interest capital market space to enable millions of Nigerians and people of the Islamic faith to invest savings ethically.

“Investors worldwide are increasingly allocating their resources into Islamic finance products,” Mr. Gwarzo said.

The DG said last year was widely considered a landmark year for Islamic finance, especially with debut Sukuk issuances by countries such as the United Kingdom, Hong Kong, Senegal, South Africa and Luxemburg.

He said the year also witnessed continued strong interest from key markets of Malaysia, Saudi Arabia, the United Arab Emirates (UAE) and emerging markets like Turkey and Indonesia.

Mr. Gwarzo added that the Sukuk market was emerging on a global scale as a viable alternative source of funding.

In Nigeria, the SEC boss said the commission implemented a number of reforms aimed at deepening the non-interest capital market.

For example, he said, the commission focused on the regulatory framework, reviewing the rules on Islamic Fund Management and introducing new rules on Sukuk issuance.

These two legal frameworks, Mr. Gwarzo pointed out, have encouraged Islamic products innovation with the registration of five ethical/Shariah compliant funds and the over-subscription of Nigeria’s first ever sub-national Ijara Sukuk by the Osun State government in 2013.

He said SEC was also considering modalities for setting up a Sharia Advisory Council as a body of experts to advise SEC and the market on non-interest product and their applications.

Mr. Gwarzo said the state governments could leverage on the Sukuk market to raise funds for developmental projects.

Going forward, he said, the focus of the SEC would be on massive public enlightenment and also stronger capacity building initiatives, adding that was what informed the idea of hosting regional events as the Roundtable

He said the commission was working with the Debt Management Office, DMO to ensure Nigeria issued her first sovereignSukuk that would provide the needed benchmark for other categories of issuers.

“We are hopeful there will be a significant progress on this front before the end of 2016,” he said.

(Premium Times / 14 March 2016)

---
Alfalah Consulting - Kuala Lumpur: www.alfalahconsulting.com
Islamic Investment Malaysia: www.islamic-invest-malaysia.com

AAOIFI and IASB held outreach meeting with international Islamic finance industry

During the outreach meeting, AAOIFI and IASB, the body that develops and issues International Financial Reporting Standards (IFRS), exhanged views with the international Islamic finance industry on issues relating to application of international accounting standards for Islamic finance. The meeting also discussed issued that Islamic financial institutions might need to address in applying IFRS 9Financial Instrument for their financial reporting, if they are required to adopt the same. IFRS 9 is a standard issued by IASB that deals with, amongst others, classification and measurement of financial assets.

The outreach meeting was attended by over 50 participants, comprising senior representatives of AAOIFI, IASB, central banks and regulatory authorities, national accounting standards boards from a number of countries including Saudi Arabia, United Arab Emirates, Indonesia, Malaysia, and Turkey, in addition to financial experts from Islamic financial institutions, accounting and auditing firms, academics and other Islamic finance industry stakeholders from over 15 countries across the major Islamic finance markets.

Dr. Hamed Hassan Merah, Secretary General of AAOIFI, said "the meeting was extremely helpful in strenghthening cooperation between AAOIFI and the IASB towards better understanding of issues relating to accounting standards for the Islamic finance industry. It also reflected the increasing global role of AAOIFI in all areas pertaining to Islamic finance".

In addition to its role in developing standards for the international Islamic finance industry, AAOIFI is also a member of the IASB's Consultative Group on Shariah-Compliant Instruments and Transactions.

(Zawya / 12 April 2015)

---
Alfalah Consulting - Kuala Lumpur: www.alfalahconsulting.com
Islamic Investment Malaysia: www.islamic-invest-malaysia.com

Morocco Weighs Pursuing $1.7 Trillion Islamic Finance Industry

Morocco plans this year to allow Islamic banking for the first time as the only North African nation with an investment-grade rating at Standard & Poor’s seeks to tap the $1.7 trillion industry.

The country’s cabinet approved a draft Islamic finance bill on Jan. 16, according to Abdeslam Ballaji, a lawmaker who worked on the proposed legislation and a member of the ruling party. The draft, which also regulates Islamic banks and allows for sukuk sales, is pending parliamentary approval and may be enacted within five months, he said last week.

Demand for financing that complies with Islam’s ban on interest is accelerating worldwide, with assets expected to climb to $3.4 trillion by 2018 from about $1.7 trillion last year, according to Ernst & Young LLP. More than 95 percent of Morocco’s population of 34 million back the introduction of banking that adheres to Shariah, according to Said Amaghdir, secretary general of the Moroccan Association of Participative Financiers, an Islamic finance business association.

“Given the choice, Muslim retail customers on the street generally prefer to bank Islamically, even if there are higher costs,” Khalid Howladar, a senior-credit officer at Moody’s Investors Service, said by phone from Dubai yesterday. “Islamic banks historically have tended to grow at twice the rate of conventional banks in Muslim countries, and as such they tend to take a market share from the conventional system.”

Billions Required

The Moroccan Association of Participative Financiers estimates total investment in Shariah-compliant products to reach $7 billion by 2018, provided the law comes into effect by the middle of the year, Amaghdir said by phone yesterday.

“Plans to expand solar and wind energy, tourism and industrial parks will require billions, and the Gulf Cooperation Council will be keener on putting money here when the law is enacted,” he said. The six-nation GCC, which includes Saudi Arabia and the United Arab Emirates, is predominantly Muslim.

Banks may also sell short-term sukuk to fund Islamic subsidiaries, Amaghdir said.

Morocco’s central bank allowed lenders and insurers to sell three Islamic products in 2007 to help develop the nation’s financial industry. The country is “almost” ready to sell its first sukuk, Prime Minister Abdelilah Benkirane said in October.

Regional Competition

“We can’t afford to drag our feet any longer because regional competition for the Islamic finance pool is heating up, not just from our Muslim neighbors,” Ballaji, the lawmaker, said in a phone interview Jan. 20.

The U.K. plans to sell debut Islamic bonds this year as Prime Minister David Cameron seeks to revive a blueprint that’s been stalled since at least 2007. The Hong Kong government this month gazetted legislation to allow the sale of Shariah-compliant notes.

Moroccans may be misinformed about the benefits of Islamic banking, Ismail Douiri, co-chief executive officer of Casablanca-based Attijariwafa Bank, said in May.

“Islamic finance is often portrayed as low-cost type of finance,” Douiri said. “Islamic finance is not charity. One should not expect financing costs to decline.”

Shariah-compliant products are typically more expensive when they’re first introduced, Howladar of Moody’s said.

“Islamic products tend to come at a premium, because the creation of the products requires substantive investment,” he said. “Orthodox customers are willing to pay more to bank Islamically. Eventually, in the face of competition, those costs fall and are comparable to conventional products.

(Bloomberg News / 22 Jan 2014)

---
Alfalah Consulting - Kuala Lumpur: www.alfalahconsulting.com
Islamic Investment Malaysia: www.islamic-invest-malaysia.com

Sustainable investing: Opportunity awaits Islamic finance industry

Islamic finance and the forms of finance generally referred to as sustainable and responsible investing (SRI) are yet to actively collaborate with each other. One would think that to strengthen their position in a market dominated by conventional finance, Islamic finance and SRI would be sharing their successes and failures, coming together for joint ventures, and supporting each other on issues where they have similar views. But such collaboration has not occurred. Building bridges between the two remains an opportunity that is waiting to be seized upon by the industry leaders from the two sides.

Islamic finance and SRI share some obvious similarities in their objectives (do good; avoid harm), methods (e.g. exclusionary screening) and claims (such as emphasis on ethics). Both seem to trigger similar expectations among their proponents of being ethically different from conventional finance. They also face similar criticism of not being able to live to up to these expectations as shown by the ‘form versus substance’ debate in Islamic finance and ‘green washing’ debate in SRI. Although SRI is older and larger than Islamic finance, which is estimated between $1 to $2 trillion in terms of global assets, both are relatively small and growing segments.

(Gulf.News.Com / 16 Sept 2013)

---
Alfalah Consulting - Kuala Lumpur: www.alfalahconsulting.com
Islamic Investment Malaysia: www.islamic-invest-malaysia.com

CIMB says industry growth a third of potential: Islamic Finance

The $1.6 trillion global Islamic finance industry is growing at a third of its potential as efforts to introduce sukuk tax legislation in non-Muslim nations have stalled, according to CIMB Group Holdings Bhd.

Shariah-compliant assets account for less than 2% of conventional equivalents, providing ample room for growth, Badlisyah Abdul Ghani, chief executive officer at CIMB Islamic Bank Bhd., a unit of Malaysia’s second-biggest lender, said in an interview. Mohd Effendi Abdullah, the head of Islamic markets at AmInvestment Bank Bhd., said there’s a need for more education and innovative new products to achieve that objective.

Efforts in South Korea, Australia, France and the U.K. to approve regulation have come to a halt, while Thailand is reviving plans to tap the market for the first time after at least a two-year delay. Nigeria is the latest to grant equal tax treatment, paving the way for a debut sukuk. Opposition from political and religious groups has prevented some nations from embracing banking that complies with the Koran’s ban on interest, according to Mohd Effendi.

“If the rules and regulations to make Islamic finance as accessible as the conventional market are in place, there’s no reason why it cannot grow at least three to four times the pace of today,” Kuala Lumpur-based Badlisyah said June 28. “The Islamic finance industry needs the right platform to grow.”

New Entrants

Global issuance of bonds that pay returns on assets to comply with Islamic principles dropped 9.5% in 2013 to $19 billion after reaching a record $46.4 billion last year, according to data compiled by Bloomberg. In 2003, the total market was just $4.3 billion.

Some countries with Islamic regulations are still reluctant to sell Shariah-compliant securities because the conventional market is more developed and issuers are more comfortable with such bonds, AmInvestment’s Mohd Effendi said, citing Singapore as an example.

Swiber Holdings Ltd., an oil and gas company based in the city state, is looking to sell its first sukuk this year. Sabana Shari’ah Compliant Industrial Real Estate Investment Trust, the Monetary Authority of Singapore, and City Development Ltd. are the only other issuers in the republic so far.

‘Some Excitement’

“New countries which are keen to develop Islamic finance further should tap the sukuk market to spur growth and to create some excitement for investors,” Mohd Effendi said. “The Islamic finance industry can grow at a faster pace if there are more new players.”

The Shariah debt market is dominated by Malaysia, Indonesia and the six-member Gulf Cooperation Council, which includes Saudi Arabia and the United Arab Emirates. The International Islamic Liquidity Management Corp. was set up in 2010 by central banks from Asia and the Middle East to sell the industry’s first short-term securities acceptable to investors across different jurisdictions. The issuance has yet to get off the ground.

While CIMB and AmInvestment are of the view that the industry’s growth hasn’t realized its full potential, Malaysian Islamic finance consultancy Amanie Advisors Sdn. said asset expansion is healthy and interest will pick up.

‘Good Start’

Regulators in key Islamic finance centers will continue to work together after they set up IILM, Baiza Bain, Amanie’s Kuala Lumpur-based managing director, said in a June 28 interview. The International Islamic Financial Market based in Bahrain issued global standards in June to help develop money markets and broaden the range of liquidity management tools.

“There’s a lot of effort among the players, especially the regulators, around the world, to consolidate their efforts,” Baiza said. “The establishment of the IILM is a good start. That will help to coordinate the redistribution of liquidity all over the world.”

Islamic Bank of Thailand, a state-owned lender, plans to sell 5 billion baht ($161 million) of 10-year notes in the fourth quarter, Bangkok-based Chief Executive Officer Thanin Angsuwarangsi said in a June 11 interview. Tunisia will issue $700 million in an inaugural offering once it has identified assets to back the securities, Finance Minister Elyes Fakhfakh said in May. South Africa is also looking at a debut issuance.

Yields on global Islamic bonds are rising on prospects the Federal Reserve will withdraw stimulus that’s contributed to fund inflows to emerging markets such as Malaysia and Indonesia.

Average borrowing costs climbed 65 basis points, or 0.65 percentage point, to 4.02% last month, according to the HSBC/Nasdaq Dubai US Dollar Sukuk Index. That’s up from a record low of 2.67% on Jan. 10. The difference between average yields and the London interbank offered rate widened 38 basis points to 217.

Tax Hindrance

Islamic bonds sold on the international market retreated 2.3% this year, HSBC data shows, while debt in emerging nations dropped 8.2%, according to JPMorgan Chase & Co.’s EMBI Global Index.

The yield on Malaysia’s 3.928%sovereign sukuk due June 2015 rose 23 basis points in June to 1.51% and was little changed yesterday, according to data compiled by Bloomberg. The premium investors demand to hold Dubai’s 6.396% November 2014 debt over the Southeast Asian nation’s bonds narrowed six basis points to 89 yesterday.

Ernst & Young said in a December report that demand for sukuk could reach $600 billion by 2015. Saudi Arabia had about $207 billion in Shariah-compliant financial assets last year, the world’s largest, according to the article.

“Regulatory wise, Islamic finance in the Middle East and Malaysia is doing okay,” Tengku Zafrul Tengku Abdul Aziz, CEO of Maybank Investment Bank Bhd., a unit of Malayan Banking in Kuala Lumpur, said in an interview yesterday. “Other countries are not seeing much growth mainly because of the tax laws.”

‘Underlying Cause’

Another factor that could have held back expansion in the industry is the fear of anything “Islamic,” Megat Hizaini Hassan, partner and head of the Islamic finance practice at Kuala Lumpur-based law firm Lee Hishammuddin Allen & Gledhill, said in an e-mail interview yesterday.

“Such rejection may perhaps be traced to a deeper underlying cause, that is, discomfort with the unfamiliar,” Megat Hizaini said. “This may be overcome if there is greater familiarity and awareness of the potential for Islamic finance to play a positive role as a viable alternative.”

(Moneyweb / 02 July 2013)

---
Alfalah Consulting - Kuala Lumpur: www.alfalahconsulting.com
Islamic Investment Malaysia: www.islamic-invest-malaysia.com

UAE: Islamic finance industry growing as Rakbank launches more products

Rakbank is starting 2013 with the launch of its new Islamic banking window. The bank’s Islamic banking services will be offered through a separate brand, Rakbank Amal, to include a wide range of products from accounts, loans and cards to takaful policies.

“As the fastest growing bank in the region, introducing Islamic Banking is the natural direction for Rakbank as it strives to better serve existing and potential customers in the country through added choice,” said Graham Honeybill, Rakbank chief executive officer.

Just like Rakbank brought innovation into conventional banking through trendsetting products, online solutions, and award-winning customer service, Rakbank Amal aims to bring the same foundations into Islamic banking to enhance the local Islamic Banking market. “The bank’s solid reputation for success and its commitment to customer service pave the way for a promising foundation for Amal with the potential to set itself apart in a crowded market,” added Mufaddal Khumri, Rakbank head of Islamic Banking.

Available throughout the Bank’s 33 branches, Rakbank Amal provides financial solutions to a wide customer base with a preference for Shariah-compliant products and services. “With rising investment flows in Islamic Finance in the UAE and Dubai’s ambitious plans to set up an integrated platform for an Islamic Economy, Rakbank aims to be at the forefront of Islamic Banking solutions to meet growing local demand,” explained Khumri.

Rakbank Amal’s Shariah-compliant products include Jood account.

(Albawaba Business / 22 Jan 2013)

---
Alfalah Consulting - Kuala Lumpur: www.alfalahconsulting.com
Islamic Investment Malaysia: www.islamic-invest-malaysia.com

Dubai Plans Regulatory Council to Push Islamic Finance Industry

Dubai, the second-biggest member of the United Arab Emirates, plans to create an Islamic finance council to regulate Shariah-compliant equity and fixed-income products to boost the industry’s role in the economy.

Dubai, which derives about 11 percent of economic output from financial services, wants to make Islamic finance a “core industry,” Sami Al Qamzi, director general of Dubai’s Department of Economic Development, said at a conference in the emirate today.

“The addition of Islamic industry is a priority to turn Dubai into the capital for the Islamic economy,” Al Qamzi said. The emirate will seek to encourage the development of a market for Islamic products including funds, sukuk and loans, he said.

Dubai became a regional hub for finance when it opened a financial center in 2004 to attract international banks, asset managers and insurers with promises of a zero-tax environment for 50 years. Global Islamic financial assets may double to as much as $3 trillion by 2015, Standard & Poor’s said in September, prompting governments, companies and banks in the Gulf Cooperation Council to take steps to boost their share in the business.

Shariah-compliant bond sales in the six-nation GCC tripled to $21 billion last year, according to data compiled by Bloomberg, as yields dropped to all-time lows.

(Bloomberg / 09 Jan 2013)

---
Alfalah Consulting - Kuala Lumpur: www.alfalahconsulting.com
Islamic Investment Malaysia: www.islamic-invest-malaysia.com

Malaysia: Islamic finance industry sets talent target

KUALA LUMPUR: Malaysia needs talents to fill 35,000 Islamic finance vacancies by 2030 to cope with the rapid growth of the industry, said Islamic Banking and Finance Institute (IBFIM) CEO Datuk Dr Adnan Alias.

He said the institute planned to provide training in Islamic finance to meet the growing needs of the industry. “IBFIM is proud to see such great take up for certified qualification in Islamic Finance and specialised certification programmes and a high level of talent as can be seen from the programmes’ assessment results,” he said in during IBFIM’s inaugural certification ceremony yesterday.

Adnan awarded certificates to 300 certified holders in various programmes in IBFIM including Islamic Financial Planning, Certified Credit Professional – Islamic and Associate Qualification in Islamic Finance.

In addition, seven outstanding certified holders who excelled in the examinations received special “highest achiever awards”.

IBFIM also presented the “Islamic Finance Talent Development Champion Awards,” to RHB Bank Bhd, Malayan Banking Bhd, Malaysia Building Society Bhd and Public Bank Bhd.

The institute launched its Network of Islamic Finance Training Institutes , which links institutes involved in talent development in Islamic finance, globally.

Adnan said 15 international Islamic finance institutes had been granted approval to participate in IBFIM’s programmes and was on the look out for more institutions to do so.

(The Star Online / 10 Dec 2012)

---
Alfalah Consulting - Kuala Lumpur: www.alfalahconsulting.com
Islamic Investment Malaysia: www.islamic-invest-malaysia.com

NIB backs AAOIFI’s efforts to reform Islamic finance industry

NIB (Noor Islamic Bank) is backing what could be Islamic finance’s biggest shake up in years, lending its support to the announcement of seven new standards from the Middle East’s leading Islamic finance regulator, the Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI).

The new standards govern key areas of Islamic finance, including financial rights and their management; liquidity management; bankruptcy; capital and investment protection; agency investment; calculation of profits transaction and options of trust.

AAOIFI will introduce the new standards to the region’s Islamic financial community at a ceremony, to be held at Dubai’s Grand Hyatt hotel, on 23 May, of which Noor Islamic Bank is a sponsor. Islamic finance industry leaders will have the opportunity to debate the proposed changes before a final draft of the reforms is prepared by the end of this year.

Hussain AlQemzi, GCEO of Noor Investment Group and CEO of Noor Islamic Bank said, “We welcome AAOIFI’s initiative to reform the guidelines that direct the work of the Shari’a boards which act as advisors to our industry. The announcement of these new standards will be an opportunity for the Islamic finance industry to engage in meaningful and insightful debate about the future direction of our industry.

“This review of standards is timely. Islamic finance is growing rapidly, hitting $1.3 trillion last year. This speed of growth will inevitably expose systemic flaws in how the industry is regulated, which could impact Islamic finance institutions and stall growth unless they are addressed. That is why we are supporting AAOIFI’s efforts to bring about much needed change.”

AAOIFI, a Bahrain-based organisation, had previously said it wished to develop standards that can benefit the industry and help drive future growth. Among the basic components of Islamic finance to be reviewed this year will be the Murabaha, Mudaraba and Ijara structures, which are designed to permit investment while obeying religious bans on paying interest and pure monetary speculation.

AlQemiz has been an outspoken critic of the lack of clear global consensus on what products and services are Shari’ah compliant. According to AlQemzi, this disconnect between different regions of the world, such as the GCC and S.E Asia, makes it harder for Islamic finance players to construct the type of cross border deals required to challenge the conventional banks dominance.

He has also criticised the Islamic finance industry for its failure to challenge the pre-eminent position of the regulators in driving the sector forward. Speaking at a recent Islamic finance conference in Dubai, Al Qemzi called on his counterparts in the industry to challenge the regulators with new and innovative products and to take responsibility for the sector’s future growth.

NIB is backing what could be Islamic finance’s biggest shake up in years, lending its support to the announcement of seven new standards from the Middle East’s leading Islamic finance regulator, the Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI).

The new standards govern key areas of Islamic finance, including financial rights and their management; liquidity management; bankruptcy; capital and investment protection; agency investment; calculation of profits transaction and options of trust.

AAOIFI will introduce the new standards to the region’s Islamic financial community at a ceremony, to be held at Dubai’s Grand Hyatt hotel, on 23 May, of which Noor Islamic Bank is a sponsor. Islamic finance industry leaders will have the opportunity to debate the proposed changes before a final draft of the reforms is prepared by the end of this year.

Hussain AlQemzi, GCEO of Noor Investment Group and CEO of Noor Islamic Bank said, “We welcome AAOIFI’s initiative to reform the guidelines that direct the work of the Shari’a boards which act as advisors to our industry. The announcement of these new standards will be an opportunity for the Islamic finance industry to engage in meaningful and insightful debate about the future direction of our industry.

“This review of standards is timely. Islamic finance is growing rapidly, hitting $1.3 trillion last year. This speed of growth will inevitably expose systemic flaws in how the industry is regulated, which could impact Islamic finance institutions and stall growth unless they are addressed. That is why we are supporting AAOIFI’s efforts to bring about much needed change.”

AAOIFI, a Bahrain-based organisation, had previously said it wished to develop standards that can benefit the industry and help drive future growth. Among the basic components of Islamic finance to be reviewed this year will be the Murabaha, Mudaraba and Ijara structures, which are designed to permit investment while obeying religious bans on paying interest and pure monetary speculation.

AlQemiz has been an outspoken critic of the lack of clear global consensus on what products and services are Shari’ah compliant. According to AlQemzi, this disconnect between different regions of the world, such as the GCC and S.E Asia, makes it harder for Islamic finance players to construct the type of cross border deals required to challenge the conventional banks dominance.

He has also criticised the Islamic finance industry for its failure to challenge the pre-eminent position of the regulators in driving the sector forward. Speaking at a recent Islamic finance conference in Dubai, Al Qemzi called on his counterparts in the industry to challenge the regulators with new and innovative products and to take responsibility for the sector’s future growth.

(C.P.I  Financial / 21 May 2012)

---

Alfalah Consulting - Kuala Lumpur:

www.alfalahconsulting.com

Islamic Investment Malaysia:

www.islamic-invest-malaysia.com