Islamic body goes global to fill skills void

Malaysian institute aims to increase membership of qualified practitioners

AMalaysian institute set up seven years ago to improve education standards for Islamic finance professionals is going global as it seeks to fill a void of experts with specialities such as insurance and law.

The Chartered Institute of Islamic Finance Professionals in Kuala Lumpur aims to increase membership of qualified practitioners to 3,000 in three years, from 400 now, Badlisyah Abdul Ghani, its president and former chief executive officer of CIMB Islamic Bank Bhd, said in an interview. The CIIF, which changed its name and geographical focus in 2015, is in talks with associations and regulators stretching from the Middle East to Indonesia as part of that campaign, he said.

The $2 trillion (Dh7.34 trillion) industry has long been plagued by a shortage of individuals who have studied beyond the prerequisite skill base and CIIF plans to start offering specialised courses next year to address the problem, which is hindering development, Badlisyah said. The Kuala Lumpur-based Finance Accreditation Agency estimates 56,000 more qualified experts will be needed to fill positions in the next five years as growth accelerates.

“There is a lack of accepted global standards for professional qualifications — similar to accounting — the absence of which has created differences in talent skills requirements across jurisdictions,” said Daud Vicary Abdullah, CEO of the International Centre for Education in Islamic Finance in Kuala Lumpur. “The industry is still at a nascent stage where talent development and planning are concerned.”

Asset growth in an industry where interest payments are forbidden showcases the need for trained professionals, with the Kuala Lumpur-based International Sharia Research Academy forecasting a $3 trillion market by 2018.

Sales of Islamic bonds known as sukuk, which scholars need to vet for conformity with religious laws, have climbed to above $45 billion in the past three years, compared with less than $10 billion a decade ago, data compiled by Bloomberg show. Takaful contributions, the equivalent of conventional insurance, are expected to reach $20 billion by 2017 from $14 billion in 2014, according to Ernst & Young LLP.