Women syariah finance student ranks swelling on CEO role models

THE only educational institute dedicated to Islamic finance is seeing a surge in female students from around the world, helping fill a shortage of experts in a global industry set to double to US$3.4 trillion by 2018.

Malaysia’s International Centre for Education in Islamic Finance, better known as INCEIF, saw total enrollment rise 67 per cent in two years to 507 in 2014, of whom 185 were women, its president Daud Vicary Abdullah said in a March 9 interview at the campus in Kuala Lumpur. In 2012, the number of females was about 80. The university is attracting students not only from Shariah hubs in Malaysia, Indonesia and Saudi Arabia, but also from countries that don’t have Islamic laws such as South Korea, New Zealand, Japan and China, he said.

The industry will require one million professionals worldwide by 2020 to meet the shortage of experts to vet products for conformity with syariah law and for innovation to spur growth, according to a 2013 report by the Malaysia International Islamic Financial Centre. Daud said Southeast Asia has made progress in equal opportunities, while it’s more of a challenge in the Middle East because of cultural barriers. The institute is seeking sponsorships to increase the ratio of females to 50 per cent from 36 per cent, he said.

“There’s absolutely no reason why it shouldn’t be 50-50,” Daud said in relation to the proportion of females to males, adding that it’s possible to achieve in five to 10 years. “There’s a visibility of female leaders in the industry who have done very well and who are admired. So you’ve got the rolemodel effect.”

There are already a number of female Islamic bank executives. Hong Leong Islamic Bank Bhd. is led by Raja Teh Maimunah Raja Abdul Aziz, while Alliance Islamic Bank Bhd has Fozia Amanulla as chief executive officer.

Nevine Loutfy, who leads Abu Dhabi Islamic Bank PJSC’s Egyptian unit, is the only woman CEO of a syariah lender in the Middle East.

Malaysia, the world’s biggest Islamic debt market ahead of Saudi Arabia, will alone need 56,000 professionals across the whole finance industry by 2020, according to the Malaysia International Islamic Financial Centre.

Syariah roles are unique in that the individual requires knowledge of finance, economics and Shariah law, the report said.

The London-based Women in Islamic & Ethical Finance Forum is mentoring members to encourage more female participation in Shariah-compliant finance and is aiming to train 100 women within the next two years, its founder Samina Akram said by e-mail March 19.

“Supporting women in the sector will help solve the talent issue,” said Samina, who used to run Merrill Lynch & Co.’s Islamic banking business in the Middle East.

“The fact the sector suffers hugely from a lack of expertise is no secret.

I believe the talent is there but not enough is being done to support and develop it.” INCEIF entered a three- year partnership with Mastercard in 2015 where the credit- card company will fund scholarships for two full-time female students annually for Master’s degrees across various Islamic finance disciplines, according to a March 5 statement.

The aid recipients will be offered a one-year contract to work at the company’s offices in Malaysia, Singapore or Indonesia once they graduate.

The university also has females coming from the United Arab Emirates, Bahrain, Oman, Brunei, Pakistan and Bangladesh, with a total intake from more than 80 countries, Daud said.

Japan, South Korea and the US have no Islamic finance laws, forcing companies wishing to participate overseas.

Japan allows subsidiaries of its banks and financial institutions to offer Shariah-compliant services abroad, while South Korea’s central bank joined the Kuala Lumpur-based standards-setting Islamic Financial Services Board in 2014.

Bank of Tokyo-Mitsubishi UFJ has operations in Malaysia, which has also attracted San Mateo, California-based Franklin Templeton Investments’ Islamic fund management business.

The shortage of Islamic Scholars who vet products such as sukuk has resulted in experts sitting on numerous boards, leading to conflicts of interest and inflated salaries. — Bloomberg