Could you provide a brief journey of how you arrived where you are today?
My interest in Islamic banking and finance stems from my undergraduate days at the International Islamic University Islamabad, where I was taught by some pioneers in Islamic economics. That led me to do my PhD in an area related to Islamic finance, even though there was no adequate PhD supervision available at Cambridge University, where I did my doctoral studies. Since joining Loughborough University in 1998, I deliberately chose only one area for my research and that was Islamic economics, banking and finance. My stay at Loughborough University gave me worldwide recognition as an expert on Islamic banking and finance. In December 2004, I was approached by Deutsche Bank to help them set up Dar Al Istithmar as a global provider of Shariah advisory services for Islamic finance, which I accepted as a challenge. This is an interesting job and I am enjoying every bit of it.
What does your role involve?
Obviously my job is managerial in nature. I manage a team of in-house researchers, liaise with our academic research team at Oxford Islamic Finance (a subsidiary of Oxford Centre for Islamic Studies) and co-opt with our Shariah scholars. Although I am an economist by training, my current role is gradually transforming me into a “modern” scholar of Islam. I work with arguably the most distinguished jurists of our time, and spending time in their company is a great learning experience. Dr Hussain Hamid Hassan, who probably has the most intelligent juristic skills amongst his contemporaries, is chairman of our Shariah Supervisory Committee, and it is indeed a great pleasure working with him. I have also been fortunate to work with the top investment bankers in the world. Geert Bossuyt of Deutsche Bank, who is also a member of our Board of Directors, is a great mind. We have together developed some very sophisticated Islamic investment products. I must also mention here that Dar Al Istithmar benefits from the vision of Dr Khaled Elnaggar, another of our directors, who is the son of Dr Ahmed Elnaggar, founder of the modern Islamic banking and finance movement.
What is your greatest achievement to date?
As a typical Libra, I can never be satisfied with what I have done so far. I still have to achieve something for personal satisfaction.
Which of your products/services deliver the best results?
As I mentioned earlier, we have developed a new range of investment products for Deutsche Bank, which can replicate the risk–return profile of any conventional products in a Shariah compliant manner. This new range of products is pioneering in nature, giving Islamic investors access to the most sophisticated technology in a manner compatible with the requirements of Shariah.
What are the strengths of your business?
Ours is a unique business model. We combine the rigour of the professional world with the authenticity of academia. My team is undoubtedly the best qualified team in our line of business. We do not create artificial solutions for our clients; rather we go back to primary research to come up with solutions that match the requirements of our clients, without compromising on Islamic principles. No other Shariah advisory firm in the world has capacity to do this.
What are the factors contributing to the success of your company?
We believe in offering real value to our clients. Shariah advice is a difficult task. Due to the scarcity of Shariah scholars, it is extremely difficult for individual banks and financial institutions to seek Shariah advice in an efficient manner. Bankers do not have the time to spend on original research; this is what we do on their behalf. This has contributed to an increase in demand for our services.
What are the obstacles faced in running your business today?
We do not think that there are any real obstacles to providing Shariah advice if the emphasis remains on the efficient running of business. We know the ins and outs of our business, and have a well thought-out strategy to go forward. Obviously, small operational problems are part of life, but we do not think that there is a real hindrance to running a Shariah advisory business.
Where do you see the Islamic finance industry, maybe in the next five years?
The Islamic finance industry will keep on growing, and will become a mainstream business in a number of Muslim countries. Those who remain dedicated to the cause of Islamic banking and finance will benefit from this growth. We are going to witness a day very soon when Islamic finance and its service providers will be market leaders in some of the Muslim countries in the Middle East.
Name one thing you would like to see change in the world of Islamic finance?
Islamic finance must keep on changing for the benefit of the communities it is serving all over the world. More commitment to social responsibility is a must for the continuous success of Islamic banking and finance.
Dar Al Istithmar (DI) is a joint venture between Deutsche Bank, Russell Wood and Oxford Islamic Finance and was incorporated in the UK for the purpose of offering Shariah compliant solutions to institutions offering Islamic financial services.
With access to the resources of its parent companies – the financial expertise of Deutsche Bank, business links in the Middle East of Russell Wood and the academic strength of Oxford Islamic Finance – DI is well positioned to serve the Islamic finance industry in an efficient and Shariah compliant way.
DI aims at expanding frontiers of the Islamic finance industry through a continuous process of innovation in finance and Shariah advice. DI also serves as a think-tank for the Islamic finance industry.
DI is completely independent of its parent companies in its operations. It provides Shariah advice to any institution offering Islamic financial services.