Could you provide a brief journey of how you arrived where you are today?
After completing my formal education (BSc Electrical Engineering and Master of Business Administration) in 1994, I joined Citibank in Lahore, Pakistan. In 1997, I moved to Saudi Arabia to work with Citi’s affiliate, Samba Financial Group.
During the years at Citi and Samba, I developed expertise in different product areas within corporate banking, starting with cash and trade products and moving to Islamic financial services and products. I worked at Samba till March 2005, with the last assignment being product and business development head for Islamic financial services. In April 2005, I moved to ABC Islamic Bank to spearhead the marketing and origination function.
What does your role involve?
In the current role, I have overall responsibility for marketing, which means originating new transactions as well as customers for ABC Islamic Bank. As our focus is on wholesale banking, the role entails origination as well as management of corporate and institutional relationships. The marketing team comprises senior transactors and relationship managers as well as junior associates who support the relationship managers.
What is your greatest achievement to date?
It is an achievement of the entire marketing team of ABC Islamic Bank that in the last three years, we have been able to increase the total revenues of the bank phenomenally (from US$8 million in 2005 to US$56 million by the end of 2007), making it the fastest-growing and one of the most profitable units at ABC Islamic. I have had the privilege of managing this team and working with others to make ABC Islamic a key pillar of the ABC Group.
Which of your products/services deliver the best results?
Murabahah is still the most popular product among our customers, as it is the most widely understood Islamic product. Its documentation is relatively simple and with minor variations, practically the same form and content is shared widely in the industry.
However, for more sophisticated customers, Sukuk provides a mechanism for accessing the wider capital markets, and is a preferred mechanism for securing longer tenor financing at market-based pricing and credit terms. Sukuk offers the best results for both the borrower and the bank.
For the bank, it provides visibility in the market and an opportunity to earn fee-based income in assisting the customer through various steps of executing a capital markets transaction.
What are the strengths of your business?
The ability to offer the widest range of products from under one roof to our target market customers is our biggest strength. Moreover, we take pride in offering products and services that not only meet the business requirements of our customers but are also fully compliant with Shariah rules, and undergo the stringent scrutiny of our Shariah board members.
To sum up, innovation in product development, compliance with Shariah and par excellence customer servicing are our main strengths.
What are the factors contributing to the success of your company?
Other than the factors mentioned above, the quality of our human resources is the main factor contributing to our success. Experienced Islamic bankers are scarce in the industry. We have taken time and effort to develop people by providing them with training, both formal as well as on the job.
As a result, we have a team of Islamic bankers who are experienced and well respected by peers in the industry as well as our customer base.
What are the obstacles faced in running your business today?
Currently, like all other players in the industry, we are faced with extremely trying and difficult market conditions. The dearth of liquidity in the marketplace has rendered it difficult to underwrite large tickets, as distribution of risk has never been as challenging before.
Assuming that market conditions stabilize to some extent, the obstacles peculiar to Islamic financing today relate to convergence between practitioners and the Shariah scholars, particularly in light of the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) rulings earlier this year related to the structuring of Sukuk issues.
Where do you see the Islamic finance industry in, say, the next five years?
In this region, Islamic finance is expected to become more mainstream and is the first choice of most customers. We see this phenomenon already in Saudi Arabia and expect it to spread to the rest of the GCC as well.
Name one thing you would like to see change in the world of Islamic finance?
Better regulation by the GCC regulators to provide a level playing field for the Islamic finance industry. Trust laws, SPV laws, clarity on zakat and tax implications on different Islamic assets and products, need the attention of the regulators.