The comments of Mansoor Durrani (Radiance Viewsweekly, 29 November-5 December 2009) seem to have stirred somebody, somewhere! Here is the response received from an expert MUHAMMED IKRAM THOWFEEK
Before I go further in responding to the issues raised by Mansoor Durrani, I would like to give a generate note on the Islamic banking and finance industry, why the conventional bankers or those from Wall Streets and Dalal Streets are embracing this industry.
Today, if you look at the Islamic finance industry, it is considered a promising and lucrative industry to all those who want to be an integral part of it. But for non-Muslims, it is a promising industry and there is a lot of money in it and makes commercial sense to aggressively pursue as a new business proposition. They learn the concept, get the right advice and know the rules of the business to be in business of Islamic banking and finance. However, for the Muslims indeed it is promising, lucrative and makes commercial sense too to enter aggressively, but in addition, it is a faith-based business, which commands to obey the Lord and to comply with Shari’ah Principles, whilst you are in business.
Yes, there is a dearth of professional Islamic bankers to keep up with the growing demand of this industry. But for those who are looking for new trends and business opportunities (irrespective of whether they are Muslims or Non-Muslims) it is clear there is a very good business proposition in the form of Islamic banking and finance.
Most definitely those who want to enter into this Islamic finance industry from a commercial perspective, they may be not Islamic bankers, but will try to learn the concept and the rules of the business to capitalise on this lucrative industry, instead of waiting till a new batch or new breed of Islamic bankers being created to bridge the gap and to meet the growing demand. The new breed of professional Islamic bankers may evolve overtime and add value to this growing industry, which is there to stay.
Many cannot conceive to what extent Islamic finance has been considered, embraced, and practised in many countries (not only in those countries where the majority are Muslims but even in those countries where Muslims are a minority) today than yesteryears. Given the current global financial crisis that brought about financial calamities in many lives globally, with the so-called well-entrenched existing system, many are looking for an alternative system that could give solace to millions of people affected by it. Islamic finance is an alternative system to those who want to take advantage and benefit from it irrespective of whether you are a Muslim or Non-Muslim.
The Islamic banking and finance system looks at any transaction/activity beyond economic and financial benefits (unlike the existing conventional system) and goes to the extent of assuring that the moral, ethical, social and religious values are not compromised.
There is no industry in the world without any critics or differences of opinion among the players, stakeholders and the observers too. It is always healthy to look at things from a positive frame of mind, which will prompt to rectify or correct any lapses with the objective of brining benefits to a wider audience (not confined to the Muslims only).
Indeed, agreed that the Islamic finance industry need new breed of professional Islamic bankers and not those who will superimpose conventional banking ideas when they take up senior positions in such Islamic banks and who are not ready for a paradigm shift to learn the new concept of Islamic banking and finance from an open mind.
We need passionate Islamic bankers to evolve and make a ‘difference’ in the Islamic finance industry, not only in the local GCC markets or regional markets, but globally. This is the opportune time to portray to global market that Islamic banking and finance is a solution provider to the global financial crises faced by many and it can be portrayed as humane where every transaction is looked at from an ethical, moral, social and religious aspect of it, in addition to economic and financial benefits.
We have to rise up to the situation and build these capabilities. Also, give a support or helping hand to those who want to pursue on this career to become the new breed of professional Islamic bankers to uplift the industry and bring about a visible change in the society where Islamic banking and finance is practised with uncompromising commitment to Shari’ah.
The challenge of the future is to “portray Islamic banking and finance as a distinct alternative (not a replacement as you have conceived) to the conventional banking system, to improve the lives, financial and investment choices of millions of people all over the world through equity participation, risk sharing and fair dealings. Otherwise, the Islamic banking and finance will be clubbed in as yet another product/service offered under the Conventional banking umbrella (similar to internet banking, GSM banking etc.)
Changes don’t happen overnight, for some actions / efforts, results or outcome may be immediate or short term but for certain other efforts / actions it might take time, may be long term or even our life-time for that matter or our younger generations might benefit from it (after we are dead and gone). We have to respect the sincere and wholehearted efforts of those (you might call them founders, fathers, uncles and aunts) who have contributed to this industry and given their best shot, many not with expectations to be praised in this world but seeking reward from Almighty Allah, whilst earning halal income for their livelihood in this world. If you look back, from a positive frame of mind, you can see some visible change over the last three decades and more. As I mentioned earlier, Islamic finance is indeed a success story today rather than yesteryears. Many can see that, but unfortunate there are some who still cannot visualise such changes happening throughout the world, where non-Islamic countries (where Muslims are a minority) striving to become the Islamic finance hub to capitalise on this new phenomena for them.
Training and development is a must to ‘raise the bar’ continuously. In addition, awareness is also equally important to bring that positive thought about the Islamic finance industry among the masses and the general public. Many who are not aware about the industry in depth or to a reasonable extent come to negative thoughts. Some even come to negative conclusions based on particular incidents with an Islamic bank or hurt by some rude behaviour of a frontline, junior or senior staff of an Islamic bank or by the mistreatment of an Islamic bank, etc. These are specific and personal issues and should not be generalised. We must look at the big picture and from a wider perspective where this industry can, I reiterate, improve the lives, financial and investment choices of millions of people all over the world through equity participation, risk sharing and fair dealings.
It is not the quantity or the number that brings the change always; it is the intention of setting up such institutions with a clear vision to give an alternative to those who seek to shun Riba (interest and/or usury) in every aspect of their lives and in every aspect of their transactions. Unfortunately, this vision is not clearly understood by many. Also, there is a notion among many that Islamic banks are charitable institutions and have to live with all the grievances of those who patronise them. Islamic banks are there to maximise returns to those investors and the stakeholders, whilst protecting the fabric of our society and adhering to the Shari’ah Principles.
Insha’Allah, going forward, intention coupled with the numbers will bring about remarkable change among those who embrace and practise Islamic banking and finance. We have already witnessed the change from yesteryears to today – many are geared up to be part of this Islamic banking bandwagon.
We have to be ready with this profile and we must radiate positive energy and enthusiasm among those who want to build a career in this field and become professional Islamic bankers to take this industry to yet another enhanced level. If we are too late, at least we have to get our children to build a career in this field and make a ‘difference’ in their lives and the lives of others.
Unlike before there are many educational programmes at various levels that are being offered to build a career in the field of Islamic banking. I can remember, 18 years ago, many of my colleagues discouraged me entering into a new industry called Islamic banking industry at that time giving various reasons. Alhamdulillah, I have seen many happenings throughout my journey in working and setting up Islamic banks in the region and quite comfortable to make every day a learning lab and also to take this message in clearer terms to those who want to take this Islamic finance route as a career opportunity that can earn the best of this world and the Hereafter, if practised sincerely.