Could you provide a brief journey of how you arrived where you are today?
I started my career first with Coopers & Lybrand, which later merged with Price Waterhouse to become PricewaterhouseCoopers (PwC), at the age of 22. I have spent 23 years with the firm.
During the last seven years within PwC, I was a managing partner, member of the European Management Board and leader of its Technology Practice EMEA department which serviced high-tech industries. My years with PwC have helped me gain extensive business experience and cross-cultural business management in Europe, the Middle East and the US.
I joined Faisal Private Bank, then Faisal Finance in September 2002. This wasn’t my first encounter with Islamic finance since I had audited Dar Al-Maal Al-Islami’s (DMI) consolidated accounts in Geneva.
My objective when joining the company was to make Switzerland a center for Islamic private banking and wealth management.
What does your role involve?
My role involves the daily management of the bank and focusing on developing innovative Shariah compliant products while at the same time catering to our clients. Here at Faisal Private Bank, we are very client-focused and strive to ensure that our products are stable and none speculative. Through our constant dedication and hard work, we’ve succeeded in establishing a good reputation within Geneva’s financial market and vis-à-vis our clients.
What is your greatest achievement to date?
In my opinion, the greatest achievement to date was to obtain the full banking license awarded by the Swiss Federal Banking Commission. We had to itemize all the proposed products, describe the organization structure, and study the impact of certain products with regards to the local rules. It was a lengthy and extensive process explaining what Islamic banking entailed to the local authorities.
At this point, we are still the first and only Islamic private bank in Switzerland and the only Islamic private bank in Europe. Although there have been many attempts by other institutions to replicate our model, none have so far succeeded in implementing it.
Which of your products/services deliver the best results?
As a rule, Shariah compliant products have to be asset backed and based on that we have developed expertise in investment strategies with an underlying real estate portfolio. Real estate investments are more stable and less volatile when compared to other forms of investments. Thanks to our peculiarity and to the fundamentals of Islamic banking, our products entail no speculation and have less leverage.
What are the strengths of your business?
We comply with the Shariah not only in the structure of our products but also in the way we manage our operations. Faisal Private Bank is committed to Islamic and ethical banking. Our investor base is universal and hence we do not only cater to Muslim investors. Our products are suitable for every investor wishing to invest ethically.
What are the factors contributing to the success of your company?
The main factor is our uniqueness. Our investors know that we are committed to investing following the precepts of the Shariah. Another factor is our creativity in structuring products that comply with Shariah rules while at the same time respecting modern business requirements. As a result, we provide decent returns to our investors by investing in less risky assets.
What are the obstacles faced in running your business today?
One of the main obstacles we face is that we are still a relatively small structure. And while we aspire to expand, we have to be prudent and take measures to do it in the safest way possible.
Where do you see the Islamic finance industry in, say, the next five years?
I think there is a consensus among the players in Islamic banking that the industry has room to grow. With the current global financial crisis, the core principles of Islamic banking have somewhat reduced the risks of ‘bad accidents’ for the investors. When you benchmark certain indeces two or three years in the future, I predict that you will see that the Islamic indexes would have performed better when compared to their conventional counterparts. At the end of the day, I think the current global financial crisis may in fact help Islamic finance.
Name one thing you would like to see change in the world of Islamic finance?
I think it would be good for the market to have a regulator for accounting principles and have a set of consistent standards for the industry that all Shariah compliant banks adhere to and are accountable for. I feel that there is something missing in the current Islamic financial scene.
Finally, I would like to see more coordination between the bodies that regulate those principles so that it increases the credibility of Islamic finance as a whole.