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PA Shameel Sajjad Designated Partner & Chief Executive Officer Zirva Business Solutions LLP
Islamic Academic Conference Al Jamia Al Islamiya, Santhapuram; 14 Jan 2012
Presentation Flow
Training and Capability Building in Islamic Finance The Global Context Key Issues Islamic Finance Education Should Address Basic Requirements for Islamic Finance Managers Islamic Finance The Indian Saga How to Build the Capabilities The Indian Context Islamic Finance Education Model for a Paradigm Shift
A Gallup poll indicates Muslim masses in several Muslim countries would like to have Shariah rule in their society and state:
In Jordan, 54% men and 55% women want Shariah as the only source of legislation. In Egypt, 70% men and 62% women favor Shariah as the only source of legislation.
- John Esposito, Who Speaks for Islam: What a Billion Muslims Really Think, New York, Gallup Press, 2007, p48
A phenomenal rise in Islamic Banking, Islamic Investment, Takaful and Islamic Businesses in the past four decades confirms a desire of the people to go for halal and avoid haram in their financial matters. The collective conscience of the Muslim Ummah, in the past fifteen centuries, never felt comfortable with interest-based economy, even in the so-called dar-ul-harb context.
The issue today is not viability of Islamic businesses and finance. Even the hardcore capitalist world has resorted to Islamic windows in its conventional banking and financial institutions. The real problem is the workforce, or the human capital, needed for Shariah-compliant management of business and finances of the people.
The human resource produced by the conventional academic and capacity-building programs cannot satisfy the demands and challenges of the Islamic financial institutions. We need highly-competent, motivated and involved persons with required knowledge of conventional banking and finance as well as knowledge of Islamic Shariah.
6. Knowledge of application of Shariah in financial transactions with particular emphasis on Islamic contracts of exchange as a method of financing, such as mudarabah (agency, trust financing), musharaka (partnership, profitsharing), ijarah (leasing), bai murabaha bi saman aajil (markup leased trading with deferred payment), bai istisna (construction contract), bai salam (forward sale), etc. 7. Knowledge of comtemporary innovations in the use of sale of contracts as tools for financing, such as sukook. 8. Skills needed for customer satisfaction. 9. Knowledge of views of contemporary Muslim thinkers on financial matters. 10. Competence to conduct ijtihad in development of new Islamic products.
According to common belief; modern Islamic finance started in Egypt by the formation of Mit Ghamr. This is against actual facts. Indians are the pioneers of modern Islamic finance thought and practice.
1920s
Writings started in response to the colonial interest based financial system. The Ulema started focusing on the uniqueness of Islamic economic system and its distinction from the capitalistic and socialistic economic systems. Anjuman Imdad e Bahmi Qard Bila Sud was established in 1923 in Hyderabad.
1930s
Moulana Hifur Rahman Seoharvi published Islam ka Iqtisadi Nizam (Economic System of Islam) in 1938; which was the first book level treatment of the subject. Patni Cooperative Credit Society was formed in Gujarat in 1939.
1940s
Muslim Fund Tanda Baoli established in 1940 in Rampur Uttar Pradesh. Anwar Iqbal Qureshi published Islam and the Theory of Interest in 1946. Islami Maashiat (Islamic Economics) was published by Syed Manaazir Ahsan Geelani in 1947. Islamic Usool par Banking (Banking on Islamic Principles) was published by Naeem Siddiqui in 1948.
1960s
Contemporary Literature on Islamic Economics (A Landmark Survey on Islamic Economics literature). Banking Without Interest, M.N. Siddiqi 1969. Muslim Fund Deoband, 1961. Toor Baitul Maal, 1966.
1970s
Muslim Fund Najibabad, 1971. Baitun Nasr 1973.
1980s
Saw the rise of profit oriented institutions. Barkat Group, 1983. Al Ameen, 1986. Al Barka Finance House, 1989.
1990s
Establishment of the Indian Association for Islamic Economics. Starting of Islamic Economics Bulletin and Islamic Economics paper at Aligarh Muslim University. Proliferation of Islamic finance companies. Tata group launches Indias first scheme targeting Muslim communitys religious sentiments, 1996.
2000s
IBF.net (Islamic finance courses). Al Jamia Al Islamia; Shantapuram, Islamic Economics & Finance PG Diploma. AMU Committee on Islamic Finance Courses. Aasra Coopretive Credit Society, 2001. Alternative Investments and Credit Ltd, 2000. Emergence of Islamic stock broking firms, 2004. UTI, Reliance, Taurus, Bajaj Allianz, Benchmark, Kotak, Kerala Government (KSIDC).
The first step is to recognize the fact that building conventional financial and managerial wisdom is the starting point. This financial wisdom can then be Islamically attuned. What is required is an integrated approach where we recognize the value of mainstream certifications in shaping the financial acumen of a person. We need not duplicate efforts; but can instead concentrate on training students for many examinations and intensely training them on the Islamic side.
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