Could you provide a brief journey of how you arrived where you are today? After completing my MBA from New York University in 1993, I commenced my career with Citibank in Pakistan and in 1997 joined the Islamic Development Bank’s Young Professionals Program. Thus began the association with Islamic finance. I moved to Bahrain in 2000 to join Ernst & Young where I led and developed the business for its Islamic financial services group. From 2002 to 2006 I worked with Dubai-based banks to develop their Islamic business before joining Morgan Stanley to set up and lead its Islamic banking initiative.
What does your role involve?
Origination, structuring and facilitating execution for all Islamic products. The business at Morgan Stanley encompasses capital markets, asset management and structured products produced by our equities and fixed income businesses. Whilst the Islamic banking expertise is based in Dubai, the business has a global focus. I am responsible for overall strategy, product development and liaising directly with our Shariah board to ensure compliance of all products. My responsibilities also require me to work across jurisdictions with all businesses within Morgan Stanley that may originate Islamic products.
What is your greatest achievement to date?
There have been many high points and I would be hard pressed to name just one. Developing the concept, structure and eventually executing the private placement for the Liquidity Management Centre in Bahrain; originating and leading Dubai Bank’s investment into BankIslami Pakistan; creating Morgan Stanley’s integrated platform for Islamic finance; executing the Petronas Sukuk last year which is the joint largest straight dollar Sukuk to date; and being involved in developing a Shariah compliant structure for The Investment Dar’s restructuring have all been satisfying projects.
Which of your products/services deliver the best results?
Our capital market offerings comprising both straight and equity-linked Sukuk have been well received. In addition to the Petronas Sukuk, in 2007 we executed the first true sale securitization in the GCC for Tamweel PJSC (awarded “Best Structured Deal” by Islamic Finance news) and in 2008 completed the first public mandatory convertible for Tabreed in the UAE. We also continue to develop new products such as the Morgan Stanley Shariah Compliant Private Equity Fund, which is a global fund that benefits by being able to invest alongside Morgan Stanley’s conventional fund and is therefore a very differentiated product. We also expect our structured products platform to become prominent this year.
What are the strengths of your business?
In a short span of three years, we have demonstrated the versatility of our business by creating products that span capital markets (straight and equity linked Sukuk), asset management (regional real estate funds and a global private equity fund) and structured certificates offering various payoffs across multiple asset classes. We continue to provide thought leadership in capital markets by developing new ideas for Sukuk structures and are currently involved in developing an extensive Shariah compliant restructuring plan for The Investment Dar that will potentially develop a template for such situations in the future.
What are the factors contributing to the success of your company?
A critical aspect is the centralization of Islamic expertise in Dubai which ensures strategic coherence and ‘quality assurance’ for potential products. Whilst the business is physically located in Dubai, it is being developed with a global focus and is integrated with all of the firm’s primary businesses. Equally important is the firm’s commitment to Islamic finance which is reflected in our Shariah board being recognized as a special committee of Morgan Stanley International’s board.
What are the obstacles faced in running your business today?
Primarily the obstacles are market related as we need Islamic capital markets to recover post-2008. This will positively impact issuers’ credits and reinvigorate investment activity.
Where do you see the Islamic finance industry in, say, the next five years or so?
Very broadly speaking, if we segment the industry into capital markets, commercial banking, Takaful and asset management, there is significant room for growth in each area. I would expect greater diversity of Sukuk products to emerge, ranging from short term money market type instruments to those that provide capital credit for financial institutions. There is great scope to further develop consumer banking products and services by Islamic banks.
Name one thing you would like to see change in the world of Islamic finance.
Greater regulatory support that creates a level playing field for Islamic finance will act as a considerable catalyst. It is not by accident that Bahrain and Malaysia have the highest concentration of Islamic financial institutions, and support bodies such as AAOIFI, IIFM and IFSB. In addition, the creation of Islamic financial institutions has been facilitated by allowing conventional banks to operate Islamic windows or standalone Islamic branches in Malaysia. Proactive regulatory support that enables Islamic finance to exist equitably with conventional financial systems from a legal, tax and accounting perspective will not only provide impetus to the industry in the GCC but also expedite its emergence in new territories such as Europe, Southeast Asia and Central Asia.
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