Could you provide a brief journey of how you arrived where you are today?
About 10 years ago, I was working with Deutsche Bank as a conventional banker in London focusing on structured products with no involvement with the Middle East or Islamic finance. As head of new product development, I was confronted with the demand for Islamic products. Before I knew it, I was global head of Islamic business at Deutsche Bank, working with a team in Dubai.
I left Deutsche Bank last year as I wanted to do something on my own. I met the shareholders of Dar Al Istithmar who have a similar view on Islamic finance as I. We then decided to join forces.
What does your role involve?
As any CEO, I like to execute the company’s strategic goals by creating an environment where my colleagues and I can work in optimal conditions. As such I see myself as a guide and facilitator.
What is your greatest achievement to date?
I have been able to combine my private and professional life successfully while being able to look at everyone straight in the eye and claim I have always been honest and fair to them.
Which of your products / services deliver the best results?
Our consulting services have been operating successfully since 2004 and are well known in the financial markets, Islamic and conventional. With regards to our new initiatives, although we are in a start up phase, the issuance platform for Islamic money markets and structured notes are gaining a lot of traction and interest from financial institutions, central banks and certain corporates. Further, we are also working on developing Shariah compliant investment products with a view to identify new assets classes and geographical locations to the Islamic investors. Having said that, it is too early to say which of our products and initiatives will deliver the best result.
What are the strengths of your business?
We are a focused entity. We offer Islamic consultancy with the help of the Oxford Centre for Islamic studies. We focus on Islamic liquidity relying on unique infrastructure/structuring capabilities and Islamic tangible products relying on our connectivity with the conventional world and Islamic structuring capabilities. Having focus makes us strong although I have to admit that our lack of diversification is, of course, risky as well. You can put that we ‘go for it’. That is probably our biggest strength.
What are the factors contributing to the success of your company?
As you can appreciate, Dar Al Istithmar is closely linked to the Islamic financial markets. I am proud to say that our consulting business contributes towards the overall growth and innovation within the Islamic financial industry. All our initiatives are ultimately aimed towards helping Islamic finance grow.
Our current initiatives for Islamic money market solutions and the development of Shariah compliant investment products are primarily due to the lack of such solutions and products in the Islamic market. In future, our focus may be a different aspect, which at that time, may fill other gaps in the Islamic financial industry. I would stress that the critical success factor for Dar Al Istithmar is in its closeness and quick reaction to the needs and requirements of the Islamic finance industry.
What are the obstacles faced in running your business today?
Islamic finance can be characterized by large demand and resulting growth. However, it cannot be defined as very innovative. I would go further to say that the rapid growth of the Islamic finance industry has somewhat held back innovation. Why would there be a need to do something different if the business is growing anyway?
In my opinion, Islamic finance practitioners should understand that we are not there yet. There are a lot of things that can be done better, through innovation. The real competition is not with other Islamic financial institutions but with the conventional financial market. Overall, I feel that the risk in Islamic finance is not that, “we aim too high and miss it” but “we aim too low and achieve it”.
Where do you see the Islamic finance industry in, say, the next five years or so?
I am optimistic as the demand for Islamic products is there and irreversible. However, the industry has to do better itself to meet that demand. Our capabilities in doing that will define how the industry will evolve. If we fail to offer products on par with conventional finance in terms of quality, liquidity and performance, then Islamic finance will become a niche market. Or we can succeed to provide products on par, and then the Islamic market will become a valid and morally superior alternative to the conventional financial world.
Name one thing you would like to see change in the world of Islamic finance.
I think I have already alluded to it. Islamic finance needs to understand that the competition is conventional finance. Therefore, we will need to embrace innovation and be willing to think outside the box, without giving up the principles that Islamic finance is built on.