Could you provide a brief journey of how you arrived where you are today?
Formerly I was the CEO of a global sovereign wealth fund, with assets in excess of US$4 billion. Prior to that, I was a senior executive at the Abu Dhabi Investment Authority (ADIA) heading it’s European asset management team, one of the largest in the world.
I am also a senior financial and management consulting advisor to governments and leading corporations.
What does your role involve?
My role involves developing Shariah compliant emerging markets soft commodity-backed liquidity management and investment instruments in the zero to six-month maturity space. This is a market worth over US$100 billion and is growing at a double digit rate per annum.
My team is also involved in the origination, structuring and placing of Shariah compliant transactions in Brazil; engaging and financing foremost Latin American growers of agricultural commodities and cattle farmers, inspection, warehouse and logistics companies, feedlot operators and global trading companies across the entire value chain.
Our mission at Abu Dhabi Equity Partners (ADEP) is to bring socially responsible, competitive, Shariah compliant funds to Latin America; starting with the asset-based agricultural sector. This effectively marries capital flows from the GCC countries to resource rich/capital short emerging markets, in a Shariah compliant asset-backed manner.
What is your greatest achievement to date?
My greatest achievement would be giving Islamic financial institutions and investors an alternative to the ubiquitous metals-based commodity Murabahah that is frowned upon by Shariah scholars. Commodity Murabahah on exchange-traded metals are often perceived as disguised conventional repos between banks, with financial/speculative trade typically greater than nine times the physical trades.
Which of your products/services deliver the best results?
ADEP has a suite of products in the zero to six-month maturity space. Both products are backed by physical assets with titles registered at local exchanges, placed at independent warehouses monitored by global surveillance companies, with escrow and custody accounts set up with a world-renowned financial institution and ultimately sold to the world’s largest agricultural companies and producers of beef.
Product A is financing soft commodity inventory with prospective counterparties, with many having investment grade ratings, offering US$3 million Libor +400-450 basis points. Product B is financing halal food (cattle) inventory with prospective counterparties having a S&P rating of up to ‘BB+’, offering US$3 million Libor +600-700 basis points. This gives investors the ability to position themselves along the most suitable risk/reward axis.
What are the strengths of your business?
The company has a deep understanding of the GCC and Latin American markets, having analyzed, identified opportunities, raised funds, operated and sold companies. Such emerging markets knowledge is combined with a deep understanding of the agro-industry and a thorough grasp of the Islamic finance industry dynamics and key operational improvement areas.
What are the factors contributing to the success of your company?
Being decisive, nimble, innovative and always putting ethics first.
What are the obstacles faced in running your business today?
Growing the industry talent pool in line with Shariah compliant asset growth, and the evolving nature of Islamic finance standards and regulation.
Where do you see the Islamic finance industry in the next five years?
We are confident that the Islamic finance industry has the potential to double in asset size within the next five years. This will not only be a result of organic growth, but also expansion of the Islamic windows’ share of conventional bank assets, and development of Islamic finance in the Arab Spring countries.
Name one thing you would like to see change in the world of Islamic finance.
The decline of the influence of the commonly used metal exchange-based commodity Murabahah in favor of innovative physical commodity-based alternative instruments that aid real economies, produce attractive risk-adjusted returns and are truer to the basic principles of Islamic finance.