Could you provide a brief journey of how you arrived where you are today?
Having achieved a degree in Economics from the University of Manchester I joined Ernst & Young in 1978. Specializing in the audit of banks, I worked at the United Bank of Kuwait in the 1990s. This bank was then at the forefront of the development of Islamic finance in London and New York. As a diligent auditor I took care to make sure I understood the business that I was auditing and I established a Europe-wide reputation in Ernst & Young as the go-to person in relation to Islamic finance transactions. The work that followed was largely for the Islamic windows of European banks, advising on the accounting, regulation and taxation of Islamic finance products and structures. I received tremendous support and encouragement in this work both from Ernst & Young in London and from our highly regarded specialist Islamic finance unit in Bahrain.
It was an exciting period from 2002 to 2006 when six Islamic finance institutions were established, as UK incorporated and regulated banks or insurers and the UK government was contemplating issuing a sovereign Sukuk. I am proud to have assisted three of the six institutions to achieve their banking authorizations, and one to achieve its listing on AIM (London Stock Exchange’s international market for smaller growing companies). I also assisted my insurance colleagues who helped the UK’s only Takaful operator to achieve their authorization.
What does your role involve?
I lead services delivered by Ernst & Young, London to the Islamic finance industry. I also share information, globally, with my Ernst & Young colleagues, demystifying the sector so that they can serve it too. I seek to support the growth of the industry in London through engagement with HM Treasury (UK’s finance ministry) and the Financial Services Authority, through speaking at conferences and with journalists and writing articles. I also contribute to various efforts to educate practitioners, for example leading seminars on Islamic corporate governance.
What is your greatest achievement to date?
The strength of the relationships that I have developed with a variety of banking institutions. These relationships are based on integrity, respect and being robust about doing the right thing .
Which of your products/services deliver the best results?
These include audit (internal or external) which provides us with a recurring opportunity to add value to our clients; adding value through transactions advice (including tax structuring) to Shariah compliant acquisitions of real estate and other European assets; demystifying Islamic finance for large European and US banks, their regulators and tax authorities adds value to the whole industry; valuable models of Shariah compliant products, structures and businesses, so enabling managements, boards and regulators to make informed decisions, and our unique Shariah compliant share based long-term incentive plan for key executives.
What are the strengths of your business?
Ernst & Young are distinguished by our ability to assemble and integrate multi-disciplinary teams of experts to address complex business needs. Its Bahrain based specialist Islamic finance unit is a market leader in advising Islamic finance institutions, winning numerous prestigious awards. This unit has worked on more than 350 projects over the last 13 years, including some of the most influential initiatives in the industry: advising on the regulatory frameworks in Bahrain, the UK and others; working closely with Islamic Development Bank on mega-industry initiatives; publishing widely read industry studies; and helping in establishing and supporting industry standard-setting bodies (AAOIFI, IIFM, IFSB, LMC). Ernst & Young’s “One Global Firm” concept enables my London-based team to utilize the knowledge and expertise developed by our Bahrain unit and other colleagues globally, to provide value-added solutions.
What are the factors contributing to the success of your company?
Our people, our culture, our clients and our global network.
What are the obstacles faced in running your business today?
Our people are so highly sought after as recruits by financial institutions that our biggest business challenge is to replace and retain our high quality staff who live our values and are able to add value to our clients.
Where do you see the Islamic finance industry in, say, the next five years or so?
If I can restrict this to London: Firstly I would like to see more, stronger, wholesale banks and re-Takaful operators in London making a difference to the global industry, for example in the areas of —standardization of product, so driving down costs; the strengthening of secondary and wholesale markets and improved pricing benchmarks; sourcing global assets for Shariah compliant investors; training and the development of skills. Secondly, I would like to see Ernst & Young working closely with these banks and re-Takaful operators to help make a difference.
Name one thing you would like to see change in the world of Islamic finance.
The UK government to issue their sovereign Sukuk, which I have worked hard to encourage.