IIFF launches Islamic Finance Scholarship Fund

Exponential growth in Islamic Finance over the past five years has led to a shortage of Islamic Finance Scholars who are desperately required to provide policy, product endorsement and overall direction for the burgeoning industry.

The IIFF Scholarship Fund aims to specifically address the shortage of financially literate Islamic Scholars which has risen dramatically following the surge in popularity of Islamic Finance. An increasing number of financial institutions interested in selling their products to potential Muslim investors are searching for Islamic experts who can issue religious edicts or fatwas approving these new Islamic products.

Christiana Tsiterou, Forum Director said, "To maintain the current levels of growth, there are simply not enough Islamic Scholars who command the necessary respect to issue fatwas in addition to being recognised and respected throughout the Muslim World. In order to satisfy this need, the International Islamic Finance Forum is proud to announce the launch of the IIFF Scholarship Fund."

IIFF hopes to gain support for their initiative and raise funds for one student and one teacher to become qualified Islamic Scholars.

"We have already received positive feedback from the industry and the first wave of sponsors will be announced at the next IIFF, which will be held in Zurich, Switzerland in November,"

added Tsiterou.

According to some industry analysts one of the more immediate issues facing the industry is the length of time it is taking Institutions to develop Shaira'a compliant products. More time needs to be dedicated to practical applications of new products rather than the theory behind them.

Kavilash Chawla, Principal of Chicago-based Nur Advisors explained, "Sharia'a compliant products need industry-wide consensus so it's not just a question of the product itself it's the respect Scholars need to command to get products approved and in to the marketplace. Presently that timeframe is beginning to stifle growth."

"It is not unusual for Islamic Scholars to be represented on up to 30 different institutional boards. Due to this excessive workload the industry is at risk of stagnating in terms of policy decision and future direction," claimed Chawla.

Despite these issues, Islamic Finance is still currently experiencing between 10-15 per cent growth per annum and with 1.6 billion Muslims worldwide, ample liquidity in the oil-rich Gulf States and the resurgent economies in SE Asia, two of Islamic Finance's key markets, the Islamic Finance industry is currently estimated to be worth US$ 750 billion.

IIFF Asia, which closed today was organised by IIR Middle East. The two-day conference highlighted Islamic asset management and allocated more than twenty hours of networking time for leading business figures, finance experts and government ministers to discuss the key issues relevant to the Asia-Pacific region.

The forum programme was specifically tailored towards the interests of the region and featured in excess of twenty in-depth sessions covering a wide range of topics, including alternative forms of investment in the Asia-Pacific region, the rapidly changing private banking landscape and retail issues. Special focus sessions were also conducted on an analysis of Islamic accounting standards and a thought-provoking session on Islamic finance and socially responsible investing (SRI), which created a great deal of debate during the previous IIFF held in Dubai.

Addressing the hot topics and key issues prevalent within the Islamic finance industry today, an unrivalled line-up of top industry speakers were recruited included Heng Swee Keat, Managing Director, Monetary Association of Singapore (MAS), Rushdi Siddiqui, Global Director, Dow Jones Islamic Index Group, Badlisyah Abdul Ghani, Head, CIMB Islamic, Malaysia; Baljeet Kaur Grewal, Vice President & Chief Economist Investment Banking, Maybank, Malaysia; Haissam Arabi, Managing Director, SHUAA Asset Management, UAE; Khalid Yousaf, Director Islamic Finance, Dubai International Financial Centre (DIFC) and Jacques Bernard, Head of Asset Management, Unicorn Investment Bank (BSC)