IN PERSON

Dr Ali Ibrahim Al Baraka Banking Groups blue sky thinker

There are several ways to connect poverty alleviation and economic development initiatives regionally. These include having impact investing institutions and developing jointstrategies to attract private investments to these initiatives along with the existing public and multilateral programmes

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n paper Dr Ali Adnan Ibrahim is First Vice President - Legal Affairs at Al Baraka Banking Group. The staid and rather formal job title however does not really do justice to the wideranging role that Dr Ibrahim undertakes at the Bahrainbased Islamic bank where he has worked since 2010. Nor does it reflect the accolades and achievements that he has

earned as one of most innovative thinkers in the industry most notably as an expert in the highly topical area of social responsibility and development, impact investing and Islamic microfinance. My role is quite multi-disciplinary, admits Dr Ibhraim. It would be fair to say that I am not your typical in-house lawyer. While I have responsibilities to look after banks

The Bahrain Banker Autumn 2013

legal interests with regard to international capital markets, M&A and any expansion strategy, my other role is assisting in development and implementation of the banks social responsibility and development initiatives including Islamic microfinance. Prior to joining Al Baraka Banking Group, Dr Ibrahim worked as a Counsel at the international law firm Baker & McKenzie in Bahrain and Washington DC where he gained extensive experience in Islamic finance and international project finance. He admits, however, that the side of Islamic finance that most interested him has been the structuring of deals and the ability to connect them with social-economic development without compromising the commercial objectives. The position at Al Baraka offered him the opportunity to focus on this unique and rapidly developing side of Islamic finance. Al Baraka always had the vision through the banks Chairman Shaikh Saleh Abdullah Kamel one of the undisputed founders of Islamic banking and its President and Chief Executive Adnan Ahmed Yousif to create a platform that could make this happen. It was a wonderful combination of minds and synergies, says Dr Ibrahim. Dr Ibrahim felt that at a law firm there was limited scope for broadening or otherwise influencing the business side of the deals so he decided to move to Al Baraka Banking Group when the position arose as this is the area where his main interest lies creating real products that can make real difference to communities and people's lives. "My experience as corporate and project finance lawyer was extremely helpful in structuring highly efficient transactions, but I now enjoy using my skills for something more intellectually and socially rewarding," he admits. The impact that Dr Ibrahim has made in his chosen field became clear in March this year when he was one of 12 successful professionals selected across the Middle East and North Africa (MENA) region to be inducted into the Young Global Leaders (YGL) Class of 2013 by the World Economic Forum (WEF). This prestigious accolade, in which he was drawn from a large pool of exceptional candidates and chosen by a committee chaired by Her Royal Highness Queen Rania of Jordan, marks him out in the words of WEF as one of an elite group of exceptional young leaders who share a commitment to shaping the global future. I was delighted to receive this recognition from the World Economic Forum as the aim of the YGL programme is to work for and bring about positive change in society. It combines committed leaders from business, government and social entrepreneurs under one roof and gives them the opportunity to come out with new ideas and initiatives for a greater good, says Dr Ibrahim. Dr Ibrahim continues

to maintain close contact with fellow YGLs in the region and globally. It is undoubtedly a great honour for both myself and Al Baraka Banking Group. But I have to say that being honoured would not mean much if I am unable to take advantage of on this exceptional opportunity and do something that is meaningful for society, adds Dr Ibrahim. This is not a task that Dr Ibrahim takes lightly. In fact from an early age at school in the small town of Kotli in Pakistan-administered Kashmir he was drawn into supporting the work of a highly inspirational mentorteacher who established a vast network of mosques and schools to promote sustainable economic development and literacy in the region. As that endowment continues to make impact on hundreds of people, Dr Ibrahim remains committed to translating that inspiration in his life and work.

I was delighted to receive this recognition from the World Economic Forum as the aim of the YGL programme is to work for and bring about positive change in society
After completing his initial law degree from Islamabad and working as a lawyer in Pakistan he became the first Pakistani to win a Fulbright doctoral scholarship to study law in the United States latterly at Georgetown University in Washington DC where he completed his PhD specialising in international financial regulations and how to integrate Islamic micro and SME finance with the international financial markets. My studies allowed me to better understand the dynamics of international finance and what issues Islamic finance faces, explained Dr Ibrahim. The overarching theme was to show how Islamic finance, within the framework of the global financial markets, can help deliver some key economic development goals. With that I focused on whether the securities markets could help in this, but I came to the conclusion that their role was highly limited and that is where I moved to analyse the optimal development model for a holistic Islamic microfinance and this remains my focus. During his time in Washington Dr Ibrahim became a key figure in developing an understanding of the potential

The Bahrain Banker Autumn 2013

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IN PERSON

IN PERSON
Dr Ali Ibrahim discusses the highlights of his career with The Bahrain Banker

of Islamic finance as a key building block of the global financial system. This involved working closely with the US Securities and Exchange Commission where he was able to discuss the impact of regulations as global economies were impacted by the financial crisis and generate a lot of goodwill by being able to share valuable research and explain the approach in a low-key and effective manner. He also acted as Co-Chair of the Islamic Finance Committee of the American Bar Association and as its Senior Adviser. He was also invited to design and teach a course in Islamic finance law at Georgetown Universitys law school, where he continues to be an adjunct professor of law. This all feeds into Dr Ibrahims desire to develop strategies and products that can meet the demand of the huge potential market for Islamic finance on both the institutional and retail sides of the market. As he has previously developed various structure, including a Green Sukuk and development-focused hydropower policy for Pakistan-administered Kashmir, Dr Ibrahim continues to work on a number of liquidity products both for Islamic finance and Islamic microfinance. Dr Ibrahim is quick to admit that there are a number of difficult hurdles to jump if Islamic microfinance is to get greater acceptance in the markets where it could have a greater market share. The global microfinance assets are around US$ 120 billion and the share of Islamic microfinance is around 1.5 percent of this market. The proportion is actually similar to the split between the larger Islamic and conventional finance markets. The big drawback to Islamic micro finance is that it cannot offer cash loans. There are asset-based structures such as Murabaha and Ijara, but tools to provide cash are

limited and often not sustainable. This restricts the ability to reach out to potential clients because they need cash, but the bottom-line is that microfinance providers (MFIs) are under pressure to manage costs and make profits for shareholders. explains Dr Ibrahim who adds that the ultimate objective should be to graduate people out of poverty and make them financially independent. Islamic microfinance should therefore be part of a larger, holistic strategy for enterprise development and investment. Dr Ibrahim believes passionately that in order for Islamic microfinance to be successful it needs a proper ecosystem with the involvement of MFIs, multi-lateral agencies such as the regional development banks, governments and civil society. There is a dire need for Islamic impact investing institutions that can provide the private investments for developmental and socially responsible projects and complement the work of other traditional, developmental stakeholders. This is commercially viable and consistent with the spirit and promise of Islamic finance. In addition to having Islamic impact investing institutions for the OIC member countries, I have also proposed establishing a global tax-adjustable social credit mechanism to work similar to the way carbon credits work which can be offset against carbon emissions. It would be a challenge as poorer countries often lack an efficient tax-generating mechanism but incentives need to be explored and offered to get the buy-in from the private sector, stresses Dr Ibrahim. Away from work Dr Ibrahim enjoys playing a spot of golf. I used to play cricket and badminton at high levels, but golf is better suited to my pace of life now a perfect combination of business and leisure .

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The Bahrain Banker Autumn 2013