Khaldoun Malkawi has served in various international banks and established his own asset management companies in Amsterdam and Geneva. He obtained his Masters degree in Islamic finance at Pebble Hills University, UK.
Could you provide a brief journey of how you arrived where you are today?
Before establishing Al Sanabel International Holding (SANA), I was the financial consultant for the palace in the UAE. I also served in different international banks and established my own asset management companies in Amsterdam and Geneva. I obtained my Masters degree in Islamic finance in London, UK and pursued an executive course at Harvard Business School. Currently, I am in the midst of completing my PhD in Islamic finance.
What does your role involve?
I act on behalf of SANA as the communicator, decision maker, leader, manager and executor and I also decide on the policies and strategies. I advise the board of directors and motivate the employees. I also ensure effective communication with shareholders, government and other relevant constituencies.
What is your greatest achievement to date?
Six years ago, I was the founder of the first and only Islamic investment house in the Levant area. SANA is a publicly listed Shariah compliant financial investment firm on the Amman Stock Exchange that was established in February 2006 with authorized capital of JOD20 million (US$28.4 million) divided into 20 million shares. It became a listed company in October 2006. After meeting the listing requirements, SANA was moved to the first market of the Amman Stock Exchange in April 2009.
Which of your products/services deliver the best results?
We have structured the Al Sanabel International Holding Islamic Index, which monitors the Amman Stock Exchange listed stocks and filters the Shariah compliant ones, creating an excellent benchmark for investors who are interested in investing in Shariah products within a diversified portfolio. We are also in the process of structuring an index fund for Sanabel Islamic Index.
What are the strengths of your business?
SANA acts as an investment bank which gives us a better flexibility levels compared to the commercial ones. SANA is currently pursuing a focused differentiation development strategy by concentrating on Shariah compliant investments exclusively and offering a comprehensive mix of financial services to clients around the world with a tilt towards institutional and Jordanian investors. SANA achieves additional differentiation by engaging in direct and indirect investments using its own capital.
What are the factors contributing to the success of your company?
SANA is always creating innovative Islamic products and searching for unique Islamic investment opportunities as well as adhering to Shariah.
What are the obstacles faced in running your business today?
The general availability of information remains limited for what is still a young and evolving industry. The rules and regulations locally and internationally are not developed enough to practice the Shariah compliant investments in a proper way. We hope that a proper solution will be resolved in the future.
The supply of trained or experienced bankers has lagged behind the expansion of Islamic banking. One of the biggest challenges facing Islamic institutions is the provision of short-term investment instruments. Several institutions have tried to develop high quality short-term instruments, but have been hampered by their ability to generate assets, by their credit ratings and by liquidity.
Where do you see the Islamic finance industry in the next five years?
I believe that more innovative Islamic financial products will be created and the world will understand the importance of Islamic finance.
Name one thing you would like to see change in the world of Islamic finance.
I would like to see more innovative products which serve the needs of the potential investors who are willing to invest in accordance with Shariah. The Islamic finance investment options are still limited compared to the commercial ones which sometimes leave the investors with limited choices. I hope to see more integration between Islamic institutions globally and to establish communication channels between Islamic entities enabling them to corporate with each other.