Could you provide a brief journey of how you arrived where you are today?
I started my career with Ernst & Young in London, working as an auditor in the banking group. I moved to the United Bank of Kuwait (UBK) in 1991 and joined its fledgling Islamic unit in 1993. As UBK was an extremely forward-looking bank, we were given the resources to develop and implement a number of products for the Islamic market. Following management changes at UBK, I moved to ABC International Bank (ABCIB) in London in early 2000 where we continued to develop Shariah compliant products. In 2006, I had a brief spell running ABCIB’s Islamic business in London before joining BLME in 2007 to run its corporate banking business.
What does your role involve?
My role is evolving with the development of the bank — one of the exciting aspects of joining a new organization is to be an integral part of its development. We provide Shariah based financing in the property, trade finance, project finance and equipment leasing sectors in the UK, Europe and the US. My role is to manage and coordinate these activities, providing advice where I can and ensuring that the financing activities of the bank are appropriate, efficiently managed and profitable for BLME.
What is your greatest achievement to date?
I still look back with pride at the Shariah compliant healthcare property fund that I put together at UBK in 1996 — one of the first Islamic property funds to be developed in the West. More recently, I am very proud of the achievements of the corporate banking team at BLME, where we have built financing volumes and revenues ahead of budget, thanks to the support of the staff and major shareholders of BLME.
Which of your products/services deliver the best results?
An interesting question — the best results for whom, the bank or our customers? Whichever way you look at it, the interests of BLME and its customers are strongly aligned. We pursue long term business relationships with our customers, provide them with finance at a fair price and try to be as flexible as possible in providing the type of financing that they require. A good example of this is the funding we provided for a US company called “Edible Arrangements,” a Muslim-owned franchise company that sells fruit arrangements that can be provided as an alternative to giving flowers. We financed their national TV advertisement campaign, and will help them develop an equipment leasing program for their 800 franchised branches.
What are the strengths of your business?
I think that the biggest strength is that we have a coherent, quality business plan, and we have the people to carry it out. The employees, Shariah supervisory board, directors and shareholders are all working to the same achievable goals.
What are the factors contributing to the success of your company?
I have to admit that we have been very fortunate in the timing of our launch. The “credit crunch” and related lack of liquidity at some banks has meant that many customers are approaching us for financing. These include non-Muslim customers who perhaps want to diversify their funding sources, or who seek a more ethical approach to banking. In turn, we have been flexible and responsive enough to take advantage of this, and have had the strong support of many of our shareholders, who have provided us with sufficient liquidity to deliver our products to the market.
What are the obstacles faced in running your business today?
The biggest obstacle is recruiting high caliber staff to take advantage of the opportunities in the market at present. Although we have succeeded in growing rapidly during the last 18 months, we have been very careful to recruit the right people. This inevitably takes time, but is the only way to grow successfully.
Where do you see the Islamic finance industry in, say, the next five years?
I see significant further growth. During the last five years, the industry has grown rapidly, with higher demand for Shariah compliant financing. This has prompted additional participants into the market to develop and implement many more Shariah compliant products. The increased variety of product, the innovative nature of much of the new business and, frequently, the strong investment performance, has prompted additional investors into the sector. I see this “virtuous circle” of growth continuing.
Name one thing you would like to see change in the world of Islamic finance?
There has rightly been some criticism of some of the new “Islamic” products that attempt to emulate their conventional equivalents, such as futures, options and other derivatives. However, I would like to see more rapid development of Shariah based products that can mitigate risks while avoiding speculation or uncertainty, so that Islamic financial institutions can legitimately hedge positions and reduce market risks accordingly.
The Bank of London and The Middle East offers Shariah compliant investment and financing products to financial institutions, corporates and high net-worth individuals in Europe, the US and the MENA region.