Islamic Finance Review (ISFIRE) October 2018

L O N D O N VOLUME

09

N O. 5

OCTOBER

2018

ISFIRE REVIEW

ISLAMIC SOCIAL FINANCE: A SUSTAINABLE MEANS OF ALLEVIATING POVERTY

ISFIRE REPORT

4TH CAMBRIDGE ISLAMIC FINANCE LEADERSHIP PROGRAMME

AN EXCLUSIVE INTERVIEW WITH EXECUTIVES OF THE OASIS GROUP

ADAM ISMAIL EBRAHIM

CHIEF EXECUTIVE OFFICER

MOHAMED SHAHEEN EBRAHIM CHAIRMAN NAZEEM EBRAHIM

DEPUTY CHAIRMAN

Published by:

GIFA MILLION DOLLAR CAMPAIGN “Edbiz Corporation is pleased to announce GIFA Million Dollar Campaign to set up an Islamic Finance Scholarship Programme to support studies and research in Islamic banking and finance“

gifa@gifaawards.com www.gifaawards.com

NOTE FROM THE

EDITOR T

IN CHIEF

he world is facing a humanitarian crisis of alarming proportions and there is an urgent need to address the basic human needs millions of people affected by conflicts and disasters. The most visible and lasting effect of which is the large numbers of people forced to flee their homes and abandon their normal lives. More than 60 million people are displaced and over 95% of current global conflicts are occurring in Muslim-dominated countries struggling with poverty and inequitable growth.

While the private sector and the financial industry can play pivotal roles in addressing these challenges, how can Islamic social financing help address the funding gap in humanitarian tragedies? A special article on Islamic social finance as a sustainable means for poverty alleviation is featured in this issue. As the article highlights, Islamic social finance can help fill the current gap in the humanitarian funding through instruments such as sukuk as well as social financing mechanisms such as zakat, waqf and sadaqah.

At the recent 8th Global Islamic Finance Awards (GIFA) awards ceremony held in Sarajevo, Bosnia and Herzegovina; Ms Lisa Doughten, Chief of the United Nations Pooled Fund Management Branch and of the Central Emergency Response Fund (UNCERF) Secretariat; highlighted the potential role of Islamic finance in contributing to alleviating humanitarian needs worldwide. In her keynote speech as the Chief Guest, she called for industry leaders to partner with UNCERF and urged them to make strategic humanitarian assistance a priority within their institutions. We have published her full speech in this issue of ISFIRE. Our cover story for this issue features an exclusive interview with the executives of the Oasis Group, which is a financial services company that is focused on the provision of investment management services within all asset classes; including listed equity and real estate. The Group, which bagged 2 prestigious awards at the 8th GIFA ceremony, is at the forefront of product development within the global Islamic finance sector and has been responsible for the promotion of ethical investment products and practices.

The October issue is packed with many other wide-ranging features, including perspectives on leadership in the 4th Industrial Revolution, point of view on what makes a successful entrepreneur and latest development in the space of Fintech and cryptocurrency.

Whether you are looking for inspiration, thought provoking articles, latest trends in Islamic finance, or just something to read while eating lunch or having coffee, we hope you enjoy the content of this issue.

Dr. Sofiza Azmi Editor-in-Chief

ISSN 2049-1905

EDITOR-IN-CHIEF Dr. Sofiza Azmi CEO, Edbiz Consulting

EDITORIAL ASSIS TANT Hasha Dar

INTERNATIONAL EDITORIAL BOARD Dr. Nafis Alam University of Reading Malaysia

Professor Mehmet Asutay Durham University

Professor Dr. Mehmet Bulut Istanbul Sabahattin Zaim University, Turkey

Dato’ Dr. Asyraf Wajdi Dusuki Islamic Finance Expert

Professor Joseph Falzon

TABLE OF

CONTENTS OCTOBER

University of Malta

Dr. Mian Farooq Haq State Bank of Pakistan

Professor Kabir Hassan, The IDB Prize Winner 2016 University of New Orleans

Dr. Rizwan Malik Islamic Finance Expert

Moinuddin Malim Alternative International Management Services

Dr. Aishath Muneeza INCEIF

Dr. Asmadi Mohamed Naim Universiti Utara Malaysia

Professor Muhamad Rahimi Osman Universiti Teknologi MARA

M. Saleem Ahmed Ranjha Wan Miana Rural Development Programme

Dr. Irum Saba Institute of Business Administration, Karachi

Dr. Mughees Shaukat College of Banking and Financial Studies, Muscat

Dr. Usamah Ahmed Uthman King Fahd University of Petroleum & Minerals

DESIGNED BY Muzna Ashraf Khalil Ahmed

ADVERTISEMENTS, COMMERCIAL AND SUBSCRIPTION ENQUIRIES

ISFIRE REVIEW 12 Islamic Financial Technology: Financial

Disruption and the Shift in Consumer Behaviour

Dr Hazik Mohamed 58 Crypto-Currency in Islamic Finance Dr. Muniruddeen Lallmahamood 102 Islamic Social Finance: A Sustainable Means of

Alleviating Poverty

Akeem Kolawole Odeduntan

COVER STORY 18 An Exclusive Interview With Adam Ebrahim,

Mohamed Shaheen Ebrahim, and Nazeem Ebrahim

PERSPECTIVES 36 Leadership for the 4th Industrial Revolution 86 Feeling Frustrated Isn’t All Bad — It’s a Sign

of Growth

Faisal Mehmood E: fmehmood@edbizconsulting.com T: +44 (0) 203 617 1089

PUBLISHED BY Edbiz Corporation Limited 305 Crown House, North Circular Road, Park Royal, London, NW10 7PN, United Kingdom T: +44 (0) 203 617 1089 E: info@edbizconsulting.com W: www.edbizconsulting.com

Copyright © 2018 Edbiz Consulting

POINT OF VIEW 42 The Next Big Thing Mohamed Azeem Saheer

56 Innovation in Islamic credit cards: proposed

model for differentiation towards responsible finance Suhail Sinnalebbe

46 102 82 Profile of a Successful Entrepreneur Hassan Waqar

ISFIRE REPORT 46 How Can Islamic Finance Support

Humanitarian Relief Efforts?

62 4th Cambridge Islamic Finance Leadership

Programme

ISFIRE PERSONALITY

42

108

76 Salim Rashid Ali Al Maharbi Acting Chief Financial Officer, Bank Nizwa, Oman

LEADING IDEAS 92 How can Islamic Finance Help the Government

of Pakistan to Solve its Water and Electricity Crisis: A Proposed Model of Waqf-Sukuk

Ehsanullah Agha

TALKING POINTS

112

98 Wealth through Self-Contentment and

Practical Ways to Attain It

82

Khalfan Abdallah 108 Change Your Mindset, Change Your Life Rohaizan Sallehudin 112 Why Good Corporate Governance Matters

Most to Shareholders and Stakeholders at Large

Herpiani Ng

This publication is provided for information purposes only and should not be treated as financial, legal or policy advice in relation to Islamic banking and finance in general or to any Islamic financial institution in particular. The reader should not act on the basis of the information contained in this publication without having obtained individual, expert advice. In this respect, publishers, editors, contributors, sponsors and other supporters of the publication do not assume responsibility for any damage resulting from decisions made by the reader on the bases of the information contained herein.

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ISFIRE REVIEW

ISL AMIC

FINANCIAL

TECHNOLOGY:

FINANCIAL DISRUPTION AND THE SHIFT IN CONSUMER BEHAVIOUR DR HAZIK MOHAMED

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THE GLOBAL FINANCIAL AND ECONOMIC CRISIS HAS DONE A LOT OF HARM TO THE PUBLIC TRUST AND CONFIDENCE IN GOVERNING AND FINANCIAL INSTITUTIONS, AS WELL AS THE PRINCIPLES AND THE CONCEPT ITSELF OF THE MARKET ECONOMY.

The global financial and economic crisis has done a lot of harm to the public trust and confidence in governing and financial institutions, as well as the principles and the concept itself of the market economy. It has also eroded a lot of public trust in corporations.

The climate of global financial uneasiness can partly be attributed to the global meltdown of 2008 where governments and other regulatory agents failed in their responsibility to monitor and steer unrestrained speculative and damaging financial activities. Outside of the instrumental complexities of collaterized debt obligations and credit default swaps, the repeal of the Glass-Steagall Act, or macro-analysis of global imbalances (in levels of savings and investment), prominent voices have echoed in unison on the erosion of trust and confidence in the global financial system.

The main themes to financial reform following the aftermath was basically to encourage greater responsibility after and accountability for risks taken prior, in the form of not bailing out the bankruptcies, limiting the increasing complexity of financial instruments,

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transparency and answerability for derivative trading to prevent investment managers from making enormous bets with other peoples’ money, among other improvements.

THE RATIONALE FOR FINANCIAL DISRUPTION

In response to the deteriorating fiscal and banking conditions in some countries, and increased financial fragmentation, major governments like the European Union (EU) and United States (US) had supplied liquidity at very long maturity and at low rates in an attempt to counter the impending risks for their banks. As the monetary policies struggled to deliver their intended outcomes, credit and economic growth were falling, leading to rising unemployment and reduced consumption and investment. The public grew more restless, with increased resentment and decreased confidence in the ability of their governments to tackle the depressed markets.

This frustration worsened by the bailouts of ‘too big to fail’ entities, have resulted in very smart individuals creating ways to create their own trust mechanisms through technology.

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If you look at Bitcoin, for example, its blockchain technology was born out of the need to keep people honest in the absence of a central authority and designed to be public and allow anyone to participate. The design sacrificed efficiency in order to ensure that theft would not pay because rewriting the ledger would require so much computational power.

Subsequently, with verifications happening from various nodes all over the world, a system like the blockchain has developed a mechanism of trust where two people who have not met and do not know each other are able to make a transaction through a technology that has done the checks and instilled a level of trust that is required in such transactions, by eliminating fraud and margins for fraudulent activities. This is one of the major reasons that disruptions, especially in the financial industry, are happening and happening at a massive scale.

Creating a system that is harder to tamper with and easier to audit will bring great benefits to an industry that is being increasingly regulated by central authorities. Beyond such rationale, other additional benefits lie in operational advantages like cost reductions, improved efficiencies, transparency and productivity.

Researches Solis, Li, and Szymanski defined this term in a concise way in these words, “the realignment of, or new investment in, advanced technology and business models to more effectively engage digital customers at every touchpoint in the customer experience lifecycle”.1 “THE REALIGNMENT OF, OR NEW INVESTMENT IN, ADVANCED TECHNOLOGY AND BUSINESSMODELS TO MORE EFFECTIVELY ENGAGE DIGITAL CUSTOMERS AT EVERY TOUCHPOINT IN THE CUSTOMER EXPERIENCE LIFE CYCLE”.

There are also different terms used in different countries with the same concept like “smart industry” and “industrial value chain initiative” in Japan, “industrial internet” in North America and “Industrie 4.0” in Germany and so on.2

THE COMPUTING POWER OF DIGITAL SYSTEMS IS BECOMING STRONGER, FASTER, AND CHEAPER AT AN EXPONENTIAL RATE AND IT IS IN LINE WITH ONE OF THE MOST FAMOUS LAW, MOORE’S LAW, WHICH PREDICTED IT.

The agenda of digitalization has not only received considerable attention from different industries and businesses, but governments and regulatory authorities have also had to keep up with the disruption and changed business environment and markets. They have begun to give importance and keep abreast with the new era of digitalization in order to be able to remain relevant in their fiduciary and ‘watchdog’ duties.

Digital Islamic revolution, digitalization, and digital transformation have become the most frequently used words in this last decade, but especially in the last few years.

This term of digital transformation has no universal definition due to its diversity and it encompasses many dimensions like digital supply chain, digitalization of services and products, and so on.

The most recent and latest example of this, is the newly formed German government which emphasized it in their list of most dedicated items.3 Unsurprisingly, other governments are following suit as studies have shown that the use and adoption of Information Communication Technologies ICTs by the large number of population has a very positive relationship with the Gross Domestic Product (GDP) of the respective countries.4

DIGITAL TRANSFORMATION AND DEVELOPMENT

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There is a plethora and multiple definitions of this term, used to describe the offline-toonline migration of commercial operations and businesses, including those found in many published research.

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1.

Solis, B., Li, C., and Szymanski, J. (2014).

The 2014 State of Digital Transformation.

Altimeter Group.

2.

Matzner, M., Büttgen, M., Demirkan, H., Spohrer, J., Alter, S., Fritzsche, A., … Möslein, K. M. (2018). Digital Transformation in Service Management.

SMR-Journal of Service Management Research, 2(2), 3–21.

3.

Liere-Netheler, K., Packmohr, S., and Vogelsang, K. (2018).

Drivers of Digital Transformation in Manufacturing.

4.

Mićić, L. (2017). Digital Transformation and Its Influence on GDP. ECONOMICS, 5(2), 135–147. Mićić cited different empirical and non-empirical studies (that explain the link between digitalization, ICTs, and the national GDP. This study is based on the evidence from European countries and concludes that digital transformation has positive impact on the GDP of these countries in terms of growth in productivity, and employment.

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Digital transformation is imperative for the financial services industry to be remain competitive and longevity in the market. The survival of financial institutions is connected with the adoption of innovation, and in embracing digital transformation to radically improve efficiency and performance within the organization. Digital transformation and new technology adoption have changed the way of doing businesses and channels to offer banking and financial products and services more intuitively and trustworthily. These new ways may be very different from the past and has resulted in reshaping the existing models of businesses and creation of new innovative ones.

In doing so, the transformations have created new industry and market leaders.

It was inevitable that technology would meet finance and spawn FinTech. The use of technologies like algorithmic machine learning,

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collecting massive amounts of data and interpreting them for decision-making or ‘crystal-ball’ predictions (predictive analytics) and distributed ledgers (blockchain) in financial industry will give rise and create innovative business models with increased levels of efficiency, productivity, cost-effectiveness whilst also improving on customer-centricity.

The most important thing and also a great challenge for both FinTech platforms and financial institutions is to adopt and implement a very pertinent, practical and transparent strategy for digital transformation within the organization as well as in external engagements.

This is not only essential to harness the opportunities afforded by such advancements in technologies, but it communicates the vision of the organization moving forward into the new digital economy.

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5.

Scardovi, C. (2017).

Digital Transformation in Financial Services.

Springer I nternational Publishing. Retrieved from //www.springer. com/gp/book /9783319669441

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SHIFTS IN CUSTOMER BEHAVIOUR

A customers’ journey is the way the customers choose to satisfy their wants and needs and will typically encompass many different processes.6 Digital transformation is changing the customers’ behaviours in unimaginable ways and this changing and influence of digitalisation in the lives and psychology of customers is very significant for all industries and in particularly for the financial services industry.

The generation to generation habits to react and act to an action has also been changed. The younger generation lives in a different world than the ones their parents’ generation lived through. The millennials who are born between 1980 and 2000 encompass more than half of the world’s population. They are projected to hold US$7 trillion as liquid assets by 2020.7 The adoption of technology, like smart phones and other smart devices is high in the millennial generation and also in digital natives (the generation who are born after 2000).

Such generations of youth prefer digital channels to access services and products, and they cannot imagine life without smart phones or the internet. The recent survey by PwC about the digital behaviour of customers shows that 46% of the survey respondents use digital channels, mobiles, tablets and laptops to access banking services as compared to 27% in 2012.

Similarly, the access to banks through brick and mortar branches has shrunk from 15% to 10%.

The digital transformation shift has also changed the expectations and wants of the customers. Today, customers want banking (or any other service for that matter) from anywhere they are and at any time, regardless if they are in the offices, or at homes in the evenings, or at a beach or in a park at the weekend. This digital behaviour of customers set a new bar for different services industries.

Each of the industry is trying to fulfil the needs of these digital mind sets by using Omni channels and advanced technologies. The competition is growing in financial institutions and FinTech platforms in the provision of more customercentric services.9 In addition, McKinsey10 notes that FinTech startups are moving beyond addressing a customer’s financial needs to offering a wider range of services, blurring the industry’s boundaries. For example, Social Finance (also known as SoFi), began offering financial products to students and young professionals but has since expanded to provide career coaching and networking services. Another prominent example is Holvi Payment Services, a Finnish start-up acquired by Spanish financial group Banco Bilbao Vizcaya Argentaria (BBVA) in 2016, began by offering banking services to MSMEs and expanded to provide other paired offerings, such as an online sales platform, bookkeeping services, expense-claims systems, and a cash-flow tracker.

Increasingly, customers are leaving physical bank branches and moving to digital channels and this marks a significant shift in consumer behaviours.8

10. https://www.mckinsey.com/industries/ financial-services/ our-insights/bracing-for-seven-critical-changes-as-FinTech-matures

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6.

Buckley, R. P., and Webster, S. (2016).

FinTech in Developing Countries: Charting New Customer Journeys (SSRN Scholarly Paper No. ID 2850091). Rochester, NY: Social Science Research Network. Retrieved from https:// papers.ssrn.com/ abstract=2850091

7.

Aldridge, I., and Krawciw, S. (2017).

Real-time risk : what investors should know about FinTech, high-frequency trading, and flash crashes. Wiley.

Retrieved from http://gen.lib.rus.ec/ book/index.php?md5=41c5b796f15ea0e66015278bdac66000

8.

PwC. (2017). Digital transformation in financial services.

Retrieved June 30, 2018, from https:// www.pwc.com/ us/en/industries/ financial-services/ research-institute/ top-issues/digital-transformation. html

9.

Dharmesh, M. (2016). Racing from digital engagement to customer intimacy. Retrieved from https://www. temenos.com/en/ market-insight/2016/ racing-from-digital-engagement-to-customer-intimacy/

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The scope of products and services offered

by FinTech companies is expanding rapidly, from being focused on payment applications, lending, and money transfers, their reach now extends into areas that include a broad engagement throughout the value chain. The new offerings cut across a wide range of financial services: corporate and investment banking, insurance, micro, small and medium enterprises (MSMEs), retail, and wealth management.

CONCLUSION

These innovations like artificial intelligence (AI), big data, blockchain, machine learning, internet of things (IoT) devices, are the disruptive tools that will play a crucial role in boosting the financial sector (banking, takaful, investment, etc.) including the Islamic Finance sector. Addressing the digital revolution that is happening right now will foster competitive advantage for the Islamic Finance industry.

FinTech is a rapidly growing sector of financial market which has evolved into a very dynamic area through the rise of smartphone penetration and operational cost reduction. Digital disruption has created a Sharing Economy having the potential to share resources via utilization of underused assets by previously disconnected potential users, and a decentralized scaling power to reach to remote and underbanked populations across the world for the enhancement of financial access and inclusion. The blockchain industry is one of the first identifiable large-scale implementations of decentralization models, conceived and executed to scale the complex levels of human activity, possibly even those that have yet to be imagined, which could further establish the Sharing Economy in the Islamic Digital Economy.

The use cases for the blockchain is expanded into several key areas that are necessary for the Islamic economy. A key application of the blockchain is the smart contract technology which, along with other enablers like payment, transaction settlement, registries and document storage systems, will be essential for building more efficient and cost-effective blockchainbased versions of takaful, Islamic capital markets, media rights, property rights, land and title deeds registries, intellectual property and trademark protection.

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The applications of the next phase of blockchain use case are where transnational and intergovernmental organisations, like the ASEAN, EU, GCC, IMF, UN, and World Bank are concerned. There is a scale and jurisdiction consideration that certain transnational operations can be more effectively administered, coordinated, monitored, and reviewed at a higher organizational level through a unified blockchain-based system.

This era of digitisation, shifting behaviours of consumers as well as the new challenges that come with it, such as collaboration models to spur innovation, agility and scalability along with circumventing cybersecurity issues requires an urgent and intelligent response from the Islamic finance community.

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DR HAZIK MOHAMED IS BEHAVIOURAL ECONOMIST, BUSINESS GROWTH STRATEGIST, ISLAMIC FINANCE SPECIALIST AND THE CO-AUTHOR OF THE UPCOMING BOOK — BLOCKCHAIN, FINTECH, AND ISLAMIC FINANCE. HE CAN BE CONTACTED AT HAZIK@ STELLARCG. COM.

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COVER STORY

AN EXCLUSIVE INTERVIEW WITH

ADAM EBRAHIM, NAZEEM EBRAHIM & MOHAMED SHAHEEN EBRAHIM OASIS GROUP

T

he Oasis Group is a financial services company that is focused on the provision of investment management services within all asset classes; including listed equity and real estate. It has been at the forefront of product development within the global Islamic Finance sector and has been responsible for the promotion of ethical investment products and practices. Established in 1997, its history coincides with the advent of modern Islamic banking and finance, and its success has been commended through the receipt of a number of prestigious global investment awards. In this exclusive interview with ISFIRE, Adam Ebrahim, CEO of Oasis; Mohamed Shaheen Ebrahim, Chairman of Oasis; and Nazeem Ebrahim, Deputy Chairman of Oasis; share their personal views on the remarkable success of this organisation.

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COVER STORY

PLEASE TELL US THE STORY OF THE EBRAHIM FAMILY, AS IT WILL BE INTRIGUING FOR OUR GLOBAL READERSHIP TO LEARN ABOUT THE ORIGINS OF A SOUTH AFRICAN MUSLIM FAMILY THAT HAS BEEN IMMENSELY SUCCESSFUL IN BUSINESS IN GENERAL AND IN ISLAMIC ASSET MANAGEMENT IN PARTICULAR. Adam Ebrahim: “In the 1890’s, our maternal and paternal grandparents arrived on the shores of South Africa from India. They settled in the city of Cape Town, and the North West province, where they set up successful trading companies. During that period of time, the general business environment was not very easy and some of the persecution that they would have encountered, would have been unforgivable. However, they were able to establish thriving businesses, due to their enterprising outlook, and their sheer determination to ensure that their families and extended communities were taken care of.

Our grandparents were hardworking men and women of impeccable integrity. They were compassionate people who were of the firm belief that one remains forever bound by your word, as it is a reflection of your honour. This is something they were taught at an early age, and it is the very same lesson that my family and I have parted to our children and grandchildren today.

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My father also imparted on us the value of owning good quality property.

He understood why land ownership was so important and besides knowing how to cultivate the land and see it as a means to production, he could identify valuable real estate, and how it could be fashioned for the future where further value could be derived over time. These were key lessons which we learned from an early age that shaped the direction of our lives.

We also learned from their successes, largely attributed to their sheer hard work and determination, which ensured that at the end of the day, you have earned your keep.

My late father, Ismail Ebrahim, was born in 1929 during the time of the Great Depression. His formative years were shaped by the experience of many in South Africa at the time, as the subsequent onset of war led to several limitations that were imposed on our people, as the country was responsible for contributing towards the food requirements of the allied forces during that period. This experience definitely shaped my father’s future business mind-set, and as a young man he learnt how to identify opportunities. As a result, he realised that by establishing himself in the farmed fruit distribution sector, he was able to create a lucrative and sustainable business. My father was also very curious about the world he found himself in, and was encouraged from an early age by my grandfather, to always seek knowledge.

Our parents grew to become respected members of our community, and they were well prepared for the businesses that they would eventually go on to manage.

My father passed away very early on in our lives, and our mother, Miriam Ebrahim, did not shy away from taking over the role as head of our household. My mother possessed a keen “entrepreneurial mind-set”, and saw to it that we were educated up to tertiary level and pushed us forward to make a mark for ourselves. I am deeply indebted to her for where we are today as a family; as she remained a pillar of strength for my 4 other siblings and I. Our successes were realised because she ensured we operated firmly as a family unit, taking care of each other, and above all, remaining grounded in our faith and our deep respect for each other as a family.

As Muslims, our noble Qu’ran teaches us from the very first revelation to “read in the name of thy Lord” or Iqraa (Surah Al-Alaq 1) – and this has always been one of the principles of our family. My father was a voracious reader, and loved reading about history and the path of many civilizations and cultures. He was also fascinated about how economies functioned and how people and wars shaped the world we live in. He taught us from an early age to read widely, and would sit with us daily to read the newspaper. Through that process, we learned how to dissect the information we engaged with and understand the underlying media narrative and its influence on society and the political mind set of the day. This experience empowered us in our understanding of the world and gave us a firm grounding that allowed us to choose the direction in life which we took.

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During our formative years, which was at the height of apartheid South Africa, we had to keep forging ahead, despite the racially motivated restrictions that were placed on our people. My mother was very bold in her outlook and she sought to provide us with every opportunity to become successful. This did not imply that we had everything handed to us on a silver platter. We certainly did not.

Whilst we lived comfortably, we were no strangers to hardship and toil, which really spurred us to push the boundaries that were meant to restrict the activities of people of colour during that period of time. While at school and university we worked part time in the family business, which was managed by my eldest brother, Mohamed Shaheen.

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Our friends could enjoy themselves on the weekends and during the vacation periods, but we had to work and while we wanted to join in the fun, we had to discharge our responsibilities first. In addition, we recognised that we simply had to continue on the path that our hardworking parents and grandparents had set out for us; which involved the progression of our family and society at large. In retrospect, the hard work has delivered the benefits we are enjoying now, and has left us in a position to leave a legacy behind. That is immeasurable and also inspires us to continually set the bar higher and ensure that the generations that follow are as inspired and motivated to do even better.

Oasis is really a family business, and at its core carries out the values of my parents and my grandparents. It has a rich heritage in South Africa and we are very proud of our beginnings. What is also worth noting is that Oasis was established to operate in the global context. It has been immensely fulfilling to see how this brand has grown and become such a core part of so many people’s lives, be it directly in the countries we operate (South Africa, Ireland, and the United Kingdom) or through our distribution partners located throughout the regions of Europe, the Middle East and South East Asia. The success of our business has rested firmly on our faith in the Almighty, our accumulated knowledge as a family, our experience in the investment arena and our unwavering dedication and commitment towards the work that we do and the clients who trust us to manage their wealth” .

AS MUSLIMS, OUR NOBLE QU'RAN TEACHES US FROM THE VERY FIRST REVELATION TO "READ IN THE NAME OF THY LORD" OR IQRAA (SURAH AL-ALAQ 1)- AND THIS HAS ALWAYS BEEN ONE OF THE PRINCIPLES OF OUR FAMILY.

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COVER STORY

LEADING AN ICONIC INSTITUTION IN THE HISTORY OF MODERN ISLAMIC FINANCE FIRST IN SOUTH AFRICA AND THEN EXPANDING GLOBALLY HAS ITS OWN CHALLENGES, AS THE POSITION BRINGS HUGE RESPONSIBILITY ALONG WITH THE PRESTIGE IT CARRIES. CAN YOU TELL US ABOUT YOUR EXPERIENCE OF LEADING ONE OF THE MOST PRESTIGIOUS BRANDS IN ISLAMIC ASSET MANAGEMENT GLOBALLY? Adam Ebrahim: “It has been an extremely rewarding and enjoyable experience. My career within the investment industry has provided me with immense intellectual stimulation, and many interesting challenges.

Working in such a dynamic industry has also developed my character and much of the knowledge that I’ve acquired has been passed on to others within our organisation. When one is entrusted to

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been managing my family’s portfolio in a Shari’ah-compliant manner long before this offering was made available to South Africans, I was able to gain a significant amount of experience. I also spent a great deal of my time researching Islamic finance, and kept abreast of what was happening in this area globally. This ensured that I had a firm command of developments in Islamic finance and went to great lengths to improve my understanding of the various components that should be included in a modern Islamic investment portfolio, and the institutions that govern and support this industry. This meant that when we decided to forge ahead with Oasis, I had already developed a detailed understanding of Shari’ah-compliant investments globally, and I was very clear about ensuring the business was built with the aim of expanding into the global investment arena where the Oasis brand would participate on the world stage. I also travelled to all corners of the world to identify scholars who were leading experts in the field of Shari’ah-compliant finance and jurisprudence.

manage other people’s wealth, you are tasked with an immense responsibility; as this wealth is the source of their security and the reward for their labour.

This is a prerogative that requires the quintessence of dedication and commitment, where one is rewarded for the ability to foresee opportunities.

In many respects, my father prepared me for this responsibility and the lessons that I have learnt have been carried with me throughout my career, and of course furthered as I continued to gain experience. In 1997, together with my brothers, Mohamed Shaheen and Nazeem, I decided to establish Oasis.

From the very onset we sought to create a global financial services company that specialised in offering Islamic and ethical investment products.

Prior to Oasis, there were absolutely no investment products that was available to cater for the needs of South African Muslim investors, and many individuals had to contend with some really mediocre offerings by some of the product providers. Of course, as I had

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We were very proactive to ensure that the required legislation was passed in order for the first Islamic investment product to be launched. It must be noted that the South African industry was very open to Islamic finance and there were many individuals within our National Treasury and Financial Services Board that welcomed our participation in the South African financial landscape, and supported and facilitated our entry of this product to the market.

These scholars were then appointed to our independent advisory board, and have been with us for over twenty one years. They include Dr. Yousuf De Lorenzo from the United States, Sheikh Nizam Yaqubi from Bahrain and Dr. Mohd Daud Bakar from Malaysia. This does not imply that we do not have any competent Shari’ah Scholars in South Africa, but the domestic sector was relatively under-developed and as we wanted to comply with the highest international standards, we identified the need to work with international scholars.

The industry has subsequently grown since we appeared on the scene and when other investment houses, banks and insurers realised the value within the Muslim market in South Africa; they also rolled out a number of Islamic investment products. So we have seen many competitors enter the market, but none of them have kept pace with the innovation and product expansion that has been provided by Oasis.

In many respects, it has been an honour to have been at the helm of Oasis when we introduced the brand to South Africans and it has been a privilege to have witnessed the phenomenal growth of our organisation. With complete partner operations that work across 2 continents, servicing 3 markets directly, and over 30 countries indirectly through our widespread distribution network; the brand has set itself apart in the asset management industry. We are blessed and very grateful to have come this far, and we remain humbled by the trust our clients place in us. It is immensely rewarding to be in a position where one is able to change the quality of people’s lives for the better, and we will continue to ensure that in doing so, we will be a part of our client’s lives for generations to come, Inshallah”.

In the first 10 years, we set the foundations for an all-encompassing product line and had already taken our brand to the global market, where we continued to push the boundaries in terms of innovative product development. Although we were not part of the final launch, we are proud to say that we gave rise to the first South African Sukuk.

This came about as a result of an invitation which we extended to our good legal friend Michael McMillan and our esteemed Shari’ah Advisor, Prof.

Yousuf De Lorenzo who made founding recommendations to our fiscal authority.

It was years after we made the initial proposals, but the seeds were planted and South Africa saw the benefit of launching its Sukuk. We have a very robust financial system in the country, and the fact that it remains inclusive and diverse at the same time, makes it one of the most attractive investment destinations to this day.

The kind of growth we went through in South Africa was also equalled, when Oasis entered the global investment space, which occurred in our initial years. Oasis entered the global market by partnering with a newly established company within the regulatory framework of Guernsey in 2000. The onset of the millennium, fired up the operating environment for financial services and with this increased momentum, there was a shift to Ireland.

In 2002, we obtained our licence and established a complete administration and client servicing facility called Oasis Global Management Company (Ireland) Ltd., which is situated in Dublin, Ireland.

Nazeem Ebrahim: “The experience has been fantastic, Alhamdulillah. We had our challenges, and there were many that we needed to overcome, but every challenge is a learning opportunity and a stepping stone to success. When we started, South Africa had no real Islamic savings or brand that offered Islamic products to Muslims and ethically conscious investors. We set about cultivating the required laws that would allow for such products and liaised with the domestic central bank, various industry bodies, as well as the respective fiscal and financial services authorities to lobby for the introduction of Islamic investment products.

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This company is the administrator to the listed Oasis Crescent Global Investment Fund (Ireland) Ltd. At the time that we established our global company, it was owned by our South African entity. However with expansion, we sold this firm to our global partner, Oasis Crescent Global Group Holdings in 2008 and its license holder, the Mylie Group, which is based in Mauritius.

With Mylie, the Oasis brand really gained traction and in addition to the Oasis Funds being registered in Ireland and South Africa, it also received its registration and distribution licence in Switzerland, Singapore, the United Kingdom and the United Arab Emirates.

With a licence in hand we entered the UK retail and institutional investment market in 2012, and we found the environment to be very accommodating.

The UK is a progressive, first world economic hub, and with their government and treasury seeing Islamic finance as a major growth area for its financial services industry as a whole, along with our established track record, we were granted our licences. This really opened up the global market for us and we partnered with a number of wealth managers and platforms to ensure a wide and deep distribution of our global products”.

GLOBALLY, WE HAVE DELIVERED ISLAMIC PRODUCTS THAT CATER FOR THE VARIOUS ASSET CLASSES.

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Following the success of these products, we launched the first Islamic endowment and Hajj savings products in South Africa during 2010, which has ensured that we now offer the most comprehensive range of Islamic investment products in this region. This range includes a number of savings products, tax free investments, retirement products, post retirement products, and endowments.

In addition, we also provide a completely tailored solution for institutional clients and wealth management platforms.

ISFIRE HAS A GLOBAL DISTRIBUTION AND OUR READERS COME FROM ALL OVER THE WORLD; PLEASE TELL US ABOUT YOUR PERSONAL APPROACH TO ISLAMIC FINANCE. AS CEO OF OASIS AND PRIOR TO THAT IN YOUR ILLUSTRIOUS CAREER, HOW HAVE YOU CONTRIBUTED TO THE DEVELOPMENT OF ISLAMIC FINANCE IN GENERAL AND ISLAMIC ASSET MANAGEMENT IN PARTICULAR?

Globally, we have delivered Islamic products that cater for the various asset classes. The hallmark of all our global fund offering is our balanced fund range which combines the equity, property, and income assets and depending on risk appetite of investors, also provides excellent portfolio diversification in a single fund.”

Adam Ebrahim: “As Nazeem has already mentioned, we put in a great deal of effort to lobby for the introduction of investment products that cater for the needs of Muslims. As such, we have been heavily involved in the development of the financial regulatory framework that facilitated the launch of Islamic finance in South Africa. In addition, these regulations allowed us to establish the first Islamic General Equity Fund in South Africa during 1998. Thereafter, we were also able to introduce the first Islamic Balanced Fund in 2001.

WE ALSO STARTED TO PROVIDE SERVICES TO INTERNATIONAL CLIENTS THROUGH OUR GLOBAL PARTNER OFFICES THAT ARE LOCATED IN DUBLIN AND LONDON. THE OASIS CRESCENT PROPERTY FUND WAS THEN LISTED ON THE JOHANNESBURG STOCK EXCHANGE IN 2005, WHICH MADE IT THE FIRST LISTED ISLAMIC REAL ESTATE INVESTMENT TRUST (REIT) IN THE WORLD.

Our commitment to Muslim investors was not limited to the provision of collective investment schemes, as we also launched the first range of Islamic retirement funds to the South African market during 2001. Furthermore, we also started to provide services to international clients through our global partner offices that are located in Dublin and London. The Oasis Crescent Property Fund was then listed on the Johannesburg Stock Exchange in 2005, which made it the first listed Islamic Real Estate Investment Trust (REIT) in the world.

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ormance that is provided at a significantly reduced level of risk, relative to the market. Since the inception of the fund, we have provided investors with a cumulative return of 2,767% (or 18.1% per annum) when measured in domestic currency returns. This performance is solid when compared to the average South African Shari’ah Equity General Portfolio, which has provided a cumulative return of 987% or 12.6% per annum.

WAY BACK IN 1998, OASIS LAUNCHED ITS FIRST SHARI’ACOMPLIANT FUND, NAMELY, THE OASIS CRESCENT EQUITY FUND. HAS THIS INITIATIVE TO GIVE INTERNATIONAL INVESTORS ACCESS TO OASIS’S INVESTMENT INSTRUMENTS BORNE FRUIT? WHAT CHALLENGES HAVE YOU FACED AND WHAT WERE THE FACTORS THAT CONTRIBUTED TO YOUR SUCCESS?

Additionally, while the total cumulative return of the Oasis Crescent Equity Fund is more than twice that of the benchmark, the amount of return per unit of risk is also of particular interest. In this case the Sharpe and Sortino ratios of the fund are 0.6 and 1.1, respectively; while the benchmark is responsible for ratios of 0.2 and 0.3.

Mohamed Shaheen Ebrahim: “The Oasis Crescent Equity Fund currently holds assets of about $400 million, which attests to the success of this fund. This growth is largely attributed to a number of key factors, which include the superior long-term investment perf-

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Hence, not only has the Oasis Crescent Equity Fund provided a high total return, it has also provided these returns at a lower level of risk.

The long-term performance of this fund has been exceptional and those investors that have been prepared to stay invested in the fund, over long periods of time, have been able to realise a considerable increase in wealth.

Much of this performance is due to Adam’s prowess when it comes to investment management and the application of his investment philosophy that is focused on long-term wealth creation.

We took this offering globally, applied the same investment philosophy to each fund and the results speak for themselves.

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Our Global Funds were launched well over eighteen years ago, and have a solid track record that mirrors much of the value; which our flagship Oasis Crescent Equity Fund has delivered.

In the UK, the Oasis Crescent Global Equity Fund has delivered 338% cumulatively since its inception to the period ending September 2018.

Relative to the average Shari’ah Global Equity peer group which delivered 56.6% cumulatively over the same period; the Oasis fund offers intrinsic value to investors.

At Oasis we do not take chances with our investments, nor do we chase the latest trends out there or succumb to any pressure when other managers are outperforming us when markets are doing very well. Everyone does well when markets are up but you understand the skill and appreciate it more when your fund manager is still per-

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forming when you have punitive falling markets and people start running in all directions. We maintain our focus.

Our job is not to time the market; we are stock pickers, and we are very selective about the companies that are included into our portfolios.

It is also worth noting that none of this success would have been possible without the support of our clients, who also believe in the application of our investment philosophy. This has ensured that we continue to manage a reasonably stable of funds that have not been subject to massive withdrawals at critical points in time. Furthermore, the close relationship we have with many of our clients has been an intricate part of our business model, and it has been important for us to give back to the community that entrusted us with the fruits of their labour�.

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IT IS ALSO WORTH NOTING THAT NONE OF THIS SUCCESS WOULD HAVE BEEN POSSIBLE WITHOUT THE SUPPORT OF OUR CLIENTS, WHO ALSO BELIEVE IN THE APPLICATION OF OUR INVESTMENT PHILOSOPHY.

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For example, we are currently rated as the best Islamic fund management company globally, and we have scooped awards over the years for our skill as investment managers, and the performance of our funds across all markets in which they operate.

That provides a clear understanding of the fact that we set out to deliver excellence from the very onset to all our investors, irrespective of who they may be or where they have come from.

WITH A GROWING NUMBER OF ISLAMIC FINANCIAL INSTITUTIONS OUT THERE, HOW DO YOU POSITION OASIS IN THE OVERALL LANDSCAPE OF IBF IN THE COUNTRIES YOU OPERATE AND GLOBALLY? Nazeem Ebrahim: “We set out to become the leading global wealth management company through the provision of ethically focused Islamic investment products. Within the global investment market space as a whole, we have more than held our own. Evidence of this is provided by the awards that we have received and ratings that have been earned by our funds.

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At Oasis we respect everyone and work incredibly hard to deliver on our investment philosophy, which has remained consistent since our doors first opened. The fundamental core values upon which the business is founded have never changed, and that is particularly

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important when one looks to position the organisation within the global investment universe. In many respects, we are still pushing the boundaries that we have set for ourselves, and this has allowed us to stay ahead of the curve, in all jurisdictions in which we currently operate. Globally we are regarded as a leading wealth manager, and that is based on the fundamental values that we have highlighted.

Moreover, we believe that our innovative investment products are of superior quality, which is what our investors have come to expect from all our investment funds.

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Over the last twenty years we have sought to develop our operational capability to operate within a worldwide context. Ultimately, we would like to provide our products to many more global investors as we believe that they would also identify with the fundamental values upon which our products were created. Therefore, our aim is to continue contributing to the global investment sector, and our job is to continue working diligently in order to achieve this objective”.

LET US ASK A DIFFICULT QUESTION TO WHICH YOU MUST HAVE AN EASY ANSWER. MANY CRITICS OPINE THAT ISLAMIC ASSET MANAGEMENT HAS FAILED TO REALISE ITS TRUE POTENTIAL WITH GLOBAL AUM OF LESS THAN $100 BILLION. WHAT FACTORS HAVE CONTRIBUTED TO RELATIVELY LESS GROWTH IN ISLAMIC ASSET MANAGEMENT IN THE WORLD?

WE BELIEVE THAT AN ISLAMIC FINANCE BUSINESS THAT IS FOCUSED ON GOOD BUSINESS PRACTICES AND A SUCCESSFUL INVESTMENT PHILOSOPHY WILL CERTAINLY PROSPER, AS THE CORE FOUNDATIONS OF THIS SECTOR ARE FUNDAMENTALLY PRUDENT.

Through the course of time, you will find that the good Shari’ah investment managers will continue to prosper and those that are not delivering will eventually leave the market. This would ultimately facilitate the continued growth of this sector to the extent that it will be able to reach its potential as the sector matures. We believe that an Islamic finance business that is focused on good business practices, and a sound investment philosophy will certainly prosper, as this sector is inherently prudent by nature, and will promote success”.

Adam Ebrahim: “While I would agree that the sector as a whole has not reached its true potential, I don’t think it has failed its investors. There are a number of investment managers that have certainly not delivered on what they set out to achieve, but the same is true for the traditional investment sector as well. However, when comparing the Islamic investment sector to the traditional investment sector, one would need to acknowledge that managing a Shari’ah-compliant portfolio is slightly more involved, and as such investors need to be cautious when selecting an investment manager in this space.

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WHEN COMPARING THE ISLAMIC INVESTMENT SECTOR WITH THE TRADITIONAL INVESTMENT SECTOR, ONE WOULD NEED TO ACKNOWLEDGE THAT MANAGING A SHARI'AH-COMPLIANT PORTFOLIO IS SLIGHTLY MORE INVOLVED AND AS SUCH INVESTORS NEED TO BE LITTLE MORE CAREFUL WHEN SELECTING AN INVESTMENT MANAGER.

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ividuals, communities and societies that benefit from our participation are also left in a sustainable and economically improved position.

WITH THE BEGINNING OF OASIS AND THE LAUNCH OF YOUR FUNDS YOU ALSO CREATED A TRUST FUND WHICH IS SOCIALLY FOCUSED AND HAS A BIG GIVING PORTFOLIO. TELL US ABOUT THIS AND SOME OF YOUR PROJECTS?

Some of the projects we manage include the Oasis Bursary Programme, skills training and development of teachers and students within the Early Childhood Development educational programme; installation of life-saving and income generating medical equipment in hospitals and assisting countries and communities facing periods of natural disaster, war and conflict. Through our focus in education Oasis has also adopted four Children’s homes and an old age home with a view to expose them to rewarding experiences and at the same time integrate them into the lives of the people who live around them”.

Mohamed Shaheen Ebrahim: “There are two main streams of contributions towards society that come from Oasis. The first stream is from within the Group itself, while the second is from the Trusts, which disburses funds on behalf of Oasis investors.

All our Shari’ah-compliant investment funds accrue a portion of non-permissible income, which is also extracted a on a daily basis. These extracted portions are placed into one of two Trust funds, known as the Oasis Crescent Fund Trust and the Oasis Crescent Global Fund Trust, which in turn distributes these monies to identified projects that benefit the society.

SOME OF THE PROJECTS WE MANAGE INCLUDE THE OASIS BURSARY PROGRAMME, SKILLS TRAINING AND DEVELOPMENT OF TEACHERS AND STUDENTS WITHIN THE EARLY CHILDHOOD DEVELOPMENT EDUCATIONAL PROGRAMME; INSTALLATION OF LIFESAVING AND INCOME GENERATING MEDICAL EQUIPMENT IN HOSPITALS AND ASSISTANCE TO COUNTRIES AND COMMUNITIES FACING PERIODS OF NATURAL DISASTER, WAR AND CONFLICT.

As Muslims, we are taught from an early age to give and help those in need.

So when structuring the business, we ensured that we set up a vehicle that would channel our investor’s unusable funds towards projects that would make a difference to the lives of those most in need. Oasis is an ethical business, and one of the founding pillars focuses on the well-being of the communities in which our company operates. So with our two streams of funding, we have been able to engage with projects within the areas of education, healthcare, social development and disaster alleviation.

We live in a time where it is necessary, and important to strengthen and empower our society, and make it healthy so that everyone can participate and grow collectively. Collaborative efforts are all about partnerships and rather than just contributing funds, we are actively involved in our projects, we share our values and ensure that the ind-

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OASIS IS AN AWARD-WINNING COMPANY, WITH ITS MOST RECENT SUCCESS AT GLOBAL ISLAMIC FINANCE AWARDS 2018 HELD AT SARAJEVO ON SEPTEMBER 29.

HOW WOULD YOU EXPLAIN YOUR SUCCESS AND RECOGNITION? Adam Ebrahim: “We will always strive to do the best on behalf of our clients, and it is this determination that largely explains the success that we have been able to achieve. Oasis has developed into a fantastic brand that is based on a successful investment philosophy, and a prudent strategy. Over the last twenty-one years we have developed into an organisation that is founded on excellence. We are supported by 230 equally dedicated and committed individuals that are located across six cities in three countries, to ensure we are able to deliver value to our clients globally. Our team forms the backbone to our entire business operation. It is gratifying to work with all our staff, and the fact that they want to see this brand go further makes it possible for us to really change the quality of our investor’s lives, and that of the communities in which we operate for the better. I am proud of my team, and humbled that they have adopted the vision I had, which is why we have been successful as an organisation”.

Nazeem Ebrahim: “Throughout the entire organisation we have great determination to succeed on behalf of our clients, and as such we look forward to building and protecting their wealth. Moreover, we also look forward to being a part of the future success of the Islamic finance sector, which contributes to the broader community as well, through various forms of charitable contributions that are made by Shari’ahcompliant investment funds. Given the strength of these fundamental values, we have realised success for which due recognition was given”.

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WE WILL ALWAYS STRIVE TO DO THE BEST THAT WE CAN ON BEHALF OF OUR CLIENTS AND IT IS THIS DETERMINATION THAT LARGELY EXPLAINS THE SUCCESS THAT WE HAVE BEEN ABLE TO ACHIEVE. OASIS HAS DEVELOPED INTO A FANTASTIC BRAND THAT IS BASED ON A SUCCESSFUL INVESTMENT PHILOSOPHY AND A PRUDENT STRATEGY.

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MEETING YOU FOR THE FIRST TIME GIVES AN IMPRESSION OF A SOFT AND FRIENDLY PERSONALITY. HOW DO YOU CATEGORISE YOURSELF AS AN ASSET MANAGER: AN AGGRESSIVE MANAGER OR SOMEONE WHO WOULD BE DICTATED BY THE PREFERENCES OF HIS SHAREHOLDERS AND INVESTORS? Adam Ebrahim: “Neither. As an investment manager, I have never followed the herd or been part of that mentality. I am hardly swayed by trends or the latest hype put out into

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se the potential of undervalued companies, and seek opportunities when markets are down and underperforming.

Investors want you to deliver value; it really is that simple. They want you to always act in their best interests and ensure that, through your actions, you take care of them. It is a responsibility for which I remain completely committed to”.

the market place. This has allowed me to never become aggressive in my stance and for that matter, I have never been influenced by greed or fear. As a fund manager; I listen to my investors. Their concerns are important, and need to be addressed with transparency and integrity. Listening to my investors does not mean I get told what I need to do. My role and position as Chief Investment Officer is very clear and I actively lead my team through a well-defined and cultivated investment philosophy. My approach is to be forward thinking, to dissect the noise, be decisive, and uncover real value through overlooked opportunities. I use tact and skill to analy-

MY APPROACH IS TO BE FORWARD THINKING, TO DISSECT THE NOISE, BE DECISIVE AND UNCOVER REAL VALUE THROUGH OVERLOOKED OPPORTUNITIES.

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THE WORLD IS FAST BECOMING ORIENTATED TOWARDS THE USE OF SOCIAL MEDIA. WHAT ROLE CAN SOCIAL MEDIA PLAY IN CREATING AWARENESS AROUND ISLAMIC ASSET MANAGEMENT AND CREATING A VIBRANT RETAIL MARKET FOR INVESTMENTS?

Often, it used to be the norm for investors to receive their information via their statements, key communication which a company would send out, or they could research the website, speak to their financial advisor, and more broadly, receive information via traditional media channels. Social media has dispelled this process and as more people connect with you, they get to interact with you on a deeper level, and in some ways, personally through these platforms.

Everywhere you look these days, people are active in the social media space and it’s not just the younger audiences you are reaching but an entire spectrum of engaged individuals who, want to connect, engage and understand the world they live in, and social media has definitely played an important role to ensure that this has happened which is positive for organisations like ourselves.

Our messages, through social media really reaches interested audiences and this level of engagement bodes well for Islamic finance as a whole”.

Nazeem Ebrahim: “If you remember what an important role Social Media had during the time of the Arab Springs, you will know and appreciate the importance of social media in general. Of course social media will create awareness and when employed correctly and respectfully, it can be a powerful tool to bring about greater awareness for Islamic Finance; in much the same way it has driven the agenda for ethical products. People are becoming much more astute in their decision making, as well as the kind of values they want to live with and be associated to. Ethical products have reached levels of popularity because of the changing mind-set, and many people becoming a lot more aware of where their products originate, how it is used and what its impact will be on the environment.

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Islamic business is prudent; good and virtuous and its system has attracted more than just a Muslim investor. Oasis doors have welcomed investors from just about every walk of life”.

AMONGST A VARIETY OF PRODUCTS OFFERED BY OASIS, WHICH ONE WOULD YOU PERSONALLY PICK UP FOR INVESTMENT AND WHY? Adam Ebrahim:

Adam Ebrahim:

“I believe that any one of our balanced investment funds present fabulous investment opportunities. These funds epitomise the essence of our investment management philosophy, and they provide investors with relatively high levels of diversification. Therefore, each of these portfolios is made up of a wellblended asset mix that incorporates diversification across geographies, currencies, sectors, asset classes and instruments. The various balanced funds within our range cater for the requirements of most investor profiles, which may constitute varying age groups and risk appetites. Each of the balanced funds is also focused on the creation of long-term growth and sustainability, which underpin our core investment values”.

“It was inevitable that as an investment manager I would set my company to operate within an Islamic framework.

Islam as a beautiful religion and way of life. Our business practices are ethical and being a Muslim I was cognisant of the fact that Islamic Finance was not available to our market. While I received training in the asset management industry, my practises were always according to my beliefs as a Muslim. I invested ethically, and opening Oasis was really an organic extension of what I was inherently doing.

ISLAMIC BUSINESS IS PRUDENT; GOOD AND VIRTUOUS AND ITS SYSTEM HAS ATTRACTED MORE THAN JUST A MUSLIM INVESTOR. OASIS DOORS HAVE WELCOMED INVESTORS FROM JUST ABOUT EVERY WALK OF LIFE.

SOUTH AFRICA HAS A SMALL MUSLIM POPULATION. RISING FROM CAPE TOWN TO BECOME A GLOBAL PLAYER IN ISLAMIC ASSET MANAGEMENT IS A HUGE ACHIEVEMENT. WHAT MADE YOU CHOOSE ISLAMIC ASSET MANAGEMENT AS A PROFESSION?

For Islamic investment products, it is no different. Investors want to know where you are investing, how you are investing, and, if through the process of investing on their behalf, you ensure that their money goes into companies and products which they are willing to be associated with. As an asset manager dealing with Islamic funds, you have a limited universe of companies to invest into. The key is to ensure you invest wisely and that you know which companies will deliver sustainable value over the long term, and that requires real analysis and a comprehensive understanding of the markets.

It’s on a much larger scale now, but there was more than a need in the market space for Islamic investments to be offered.

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ON A PERSONAL NOTE WHO HAS INSPIRED YOU THE MOST AND WHY? HOW HAS THIS INSPIRATION SHAPED YOUR APPROACH TO ASSET MANAGEMENT?

Planning is important and every honourable leader, like Khalid ibn AlWaleed knows that when you have others depending on you; you have to be wise about your choices and always seek out the best plans you can so those that rely on you are well taken care of”.

Adam Ebrahim: “The most influential person in my life has been my father. Through hard work, he was able to acquire significant knowledge and this insight allowed him to identify opportunities long before others started to think about it. In addition, he was also an extremely brave man who had the conviction to follow through on the various strategies that he developed, despite many of the adversities that he encountered. He was very well read, challenged us to think broadly and deeply, and always led by example. Much of what we have accomplished at Oasis today is grounded in his teachings. My approach to property and Oasis property investment strategies are definitely influenced by my father’s experiences and I remain grateful to him for nurturing my understanding in this area from such a tender age. In addition, my father was also a compassionate man who genuinely cared about others, and as such he tried wherever possible to ensure that those around him would also benefit from his success. I do not believe that anyone could be presented with a better role model.

ANY NEW PRODUCT ON THE HORIZON?

PLANNING IS IMPORTANT AND EVERY HONOURABLE LEADER, LIKE KHALID IBN AL- WALEED KNOWS THAT WHEN YOU HAVE OTHERS DEPENDING ON YOU; YOU HAVE TO BE WISE ABOUT YOUR CHOICES AND ALWAYS SEEK OUT THE BEST PLANS YOU CAN SO THOSE THAT RELY ON YOU ARE WELL TAKEN CARE OF.

Adam Ebrahim: “Oasis product offering is comprehensive in itself but there is always room for products to be offered in markets where there is a demand. We have our eye on the retirement industry in the UK, and see this as an exciting opportunity in the near term. Like all our approaches, we are careful to research and plan what our entry into the retirement space would translate into. It is not a straightforward process and you need to make sure this offering is more than just supported, but that it really delivers long term value and it is sustainable”.

With my fascination with history I have really admired Khalid ibn Al-Waleed, who I found not only to be an inspirational leader, but also a key strategist and analyst. He was meticulous in his approach to unite the Ummah and in many respects he was able to successfully plan ahead of time to ensure that he was able to outsmart his respective adversaries. I have drawn many lessons from his approach and always made every effort to plan my path ahead as much as I could, Inshallah.

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WHAT WOULD BE YOUR MESSAGE TO THE GLOBAL ISLAMIC FINANCIAL SERVICES COMMUNITY, PARTICULARLY THE YOUTH? Adam Ebrahim: “The beauty of youth is that you have your life ahead of you, and dreams that need to be nurtured and fulfilled.

I am very encouraged when I see what young people are doing, and how they explore the world around them in order to make a mark for themselves. They certainly are competitive in all sectors, and my message to them is to never stop growing, learning and challenging yourself. The Almighty has created you for a purpose, and you must realise and fulfil that purpose with honour and integrity. In doing so, you need to plan for the time ahead, and that is true for your finances as well. Nothing worthwhile is achieved without hard work and patience, and this is the same for your investments. It is never too early to start saving and nurturing the kind of life you want for yourself. There is a myriad of Islamic investment products out there, allowing you to interact in this world; stay true to your roots and continue doing the things you need to in order to sustain yourself well into the future, Inshallah”.

NOTHING WORTHWHILE IS ACHIEVED WITHOUT HARD WORK AND PATIENCE, AND THIS IS THE SAME FOR YOUR INVESTMENTS. IT IS NEVER TOO EARLY TO START SAVING AND NURTURING THE KIND OF LIFE YOU WANT FOR YOURSELF.

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LEADERSHIP TH FOR THE 4 INDUSTRIAL REVOLUTION without boundaries spreading across the world with incredible velocity”.

The quote reflects the profound real state of the world today and how Industry 4.0 will impact our lives including our workplace. For example, in today’s fast pace work environment, speed of decision-making has changed. We find ourselves with far less time than we used to have to make informed decisions.

he Fourth Industrial Revolution or also known as Industry 4.0 is characterised by increasing digitisation and interconnection of products, value chains and business models. Industry 4.0, which integrates technological advances into every facet of life, is bringing unprecedented changes to societies and organizations throughout the world, and this will only continue to permeate the spaces which we inhabit.

The multiple ramifications of digitalization and the accompanying acceleration and increased complexity of work activity, makes it urgent to revisit the assumptions and practices that have defined our ways of leading and organizing until the present day and to propose possible ways forward.

In order for businesses to thrive in this “new world”, a different kind of leadership is needed. During the World Economic Forum 2016, Professor Klaus Schwab said: “We are living in a time of extraordinary change. In this Fourth Industrial Revolution, every individual, business, industry and government is being impacted by breakthroughs in computing power, connectivity, artificial intelligence (AI), biotechnology and other innovative technologies. This is a revolution

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MIT professors, McAffee and Brynjolfsson, suggest that digitalisation of the workplace also means re-thinking the balance between minds and machines, between products and platforms, and between the core and the crowd.1 They argued that understanding when, where, how and why these machines, platform and crowds can be effective is the key to success in the economy today.

Another significant change is the unprecedented speed of communication and the explosion in the amount of data. All these require a new set of skills - a blend of technical prowess, creativity and emotional intelligence to navigate this new business landscape.

With numerous scientific discovery and technological advancement that has transformed many aspects of our daily and working lives, leaders are responsible to navigate these changes with integrity and to provide positive, impactful leadership as the business landscape takes a new shape.

As Professor Klaus Schwab notes, “We need leaders who are emotionally intelligent, and able to model and champion co-operative working. They’ll coach, rather than command; they’ll be driven by empathy, not ego. The digital revolution needs a different, more human kind of leadership”.

1.

McAffee and Brynjolfsson (2017).

Machine, Platform, Crowd: Harnessing our Digital Future.

New York : W.W. Norton & Company

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ISFIRE ASKED LEADING PROFESSIONALS TO SHARE THEIR THOUGHTS ON WHAT LEADERSHIP SKILLS ARE NEEDED TO HELP PREPARE FOR CHANGES BROUGHT ABOUT BY THE 4TH INDUSTRIAL REVOLUTION. HERE IS WHAT THEY HAD TO SAY:

Mohd Muazzam Mohamed Acting Chief Executive Officer, Bank Islam Malaysia Berhad

As widely reported, we will see more of artificial intelligence and machine learning, advanced robotics in production and manufacturing, and autonomous transportation. These will not only change the way we use machines and computers, it will also change the way we live and how we make our living. Job requirements will change. There will be different skillsets requirements altogether in the jobs market.

Relevant and useful skillsets in the 1990s will soon become irrelevant and outdated in the near future.

Advanced robotics render technical and vocational skillsets irrelevant as factories will employ full robotics and automation at the production lines.

With the advent of artificial intelligence, there is a threat that base knowledge of any profession is made available to, and better exploited by, computers that can access and analyse the base knowledge faster than human. Autonomous transportation will radically change the industry that will enable more efficient and effective logistics.

the operations staff need to be re-skilled to become problem solvers and solutions providers to the banks’ customers. Banks’ employees should be trained to have cognitive flexibility, greater service orientation and deeper emotional intelligence.

AS LEADERS, WE NEED TO BE AWARE OF AND ACKNOWLEDGE THE THREAT OF CHANGES BROUGHT ABOUT BY IR 4.0 TO OUR ORGANISATIONS

Thirdly, we need to be conscious in bringing new skillsets into the organisation. There need to me more needs for data scientists, programmers and engineers in banks compared to the past. The other aspect is that as leaders, we need to consciously invest into the future and in this aspect, allocate resources towards enhancing technology infrastructure. There would be less focus on physical infrastructure of branch networks and this would naturally mean that capital investment should be more towards building digital solutions for the customers. There should be greater collaboration with technology partners.

The impact differs across industries. While banking and finance is considered to be less affected, we have seen the advent of FinTech and how quickly banks have to adapt. Use of technologies have forced banks to re-think the way they service their customers.

Investments are allocated much more for technology infrastructure. Use of robo-advisory is becoming more commonplace in banks.

As leaders, we need to be aware of and acknowledge the threat of changes brought about

by IR 4.0 to our organisations. It is important that we address the people and culture of the organisation.

Firstly, we need to change the organisational mind set to be creative and innovative to stay ahead. Banks need to learn from organisations in other industries in being more adaptable to rapid changes and move away from bureaucracy.

Secondly, we need to educate and re-train the workforce to be adaptable to the rapid technology changes. As transaction processing are automated,

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Wajeeha Hussain Awadh Digitalization & Fintech Initiatives, Al Baraka Banking Group

The Fourth Industrial Revolution is unlike the earlier revolutions, the speed of technology improvement is bringing a lot of change. In fact, the lines between the digital, physical, and biological systems are too blurry to identify what is human and what is artificial. Given these radical changes, it is expected that in a decade time, around 40% of the current businesses will no longer exist.

than resisting. Second is the speed of decision making, where leaders should take fast decisions to cope with the speed of changes happening in the industry. Third is the collaboration and partnerships, where businesses should not work in silos and instead collaborate with different components of the ecosystem to stay on top of the change and succeed. We are currently at the beginning of the revolution and leaders need to gear up for the coming changes.

For these businesses to stay relevant in the market, leaders should have some essential skills to deal with these dramatic shifts. Accordingly, there three key skills future leaders should develop. First is the adaptability to changes, where leaders should embrace changes rather

Mazin Khalil Manager, UAE Financial Services and Global Islamic Finance, Grant Thornton The 4th Industrial Revolution brings forward both opportunities and challenges to the element of leadership, given the fast-paced advancement of the surrounding economy. As defined by the World Economic Forum in March 2018: “The revolution is characterized by a fusion of technologies that is blurring the lines between the physical, digital, and biological spheres, collectively referred to as cyber-physical systems. It is marked by emerging technology breakthroughs in a number of fields, including robotics, artificial intelligence, nanotechnology, quantum computing and biotechnology�.

An example can be taken from my own industry of specialty, Islamic finance. The relatively new industry faced

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several obstacles on the outset, however, the tremendous growth rate across banking, capital markets and insurance captured global attention with superb indicators across.

Leadership in Islamic finance can be viewed as a demonstration of the required skills in the 4th Industrial Revolution, as the industry is based on timeless guidelines from the last millennium, customized to fit into the established financial world within a span of five decades. The required skills include an open-mind, creative communication, agility and technological awareness. When mastered, it is bound to facilitate a guiding infrastructure to both leaders and recipients to achieve the common purpose of sustainable growth, and a platform for future generations to proceed into greater heights.

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Amir Firdaus Treasurer, Al Rayan Bank

In this new digital era, we are seeing many changes, particularly when it comes to the workplace. Today, workforces are often dispersed geographically and are more digitally adept, meaning we are seeing a lot of changes to processes and to the way we approach tasks.

Traditional leadership, therefore, needs to adapt to be compatible with this digital age. There are three key areas that we should considered when it comes to preparing leaders for changes brought about by the fourth industrial revolution.

Firstly, good leaders should be able to acknowledge the need to change. Good leaders of today are visionaries and are able to identify when it is time to change, rather than shy away from the idea. They understand that they cannot afford to stand still or become complacent.

Secondly, decision-making is the quality of a good leader. But traditional, linear thinking isn’t enough to help businesses thrive - understanding you might need to make the decision to change tact is equally important. But recognising that an approach or tactic isn’t working isn’t a sign of failure. Acknowledging when a plan isn’t coming together is vital in today’s fast-paced environment and it is often these moments of discovery that lead to an even greater ‘eureka’ moment.

Thirdly, adaptability in today’s climate is critical. A simple change in the way we do things can be very impactful and can enable organisations to thrive.

Banking is a very good example of this. While we used to solely visit banks in-person for advice, in response to today’s digital natives, we are seeing the growth of online platforms where you can receive informed advice virtually.

Ultimately, using all the tools at our disposal in line with current trends and behaviours is key when it comes to successfully adapting to the environment around us.

Mansoor Danish Islamic Wealth Consultant

WITH DIGITAL REVOLUTION, THE DEFINITION OF PRIVACY OR OUR NOTIONS OF SENSE OF PRIVACY IS FAST CHANGING.

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Digital revolution, which is driving the 4th Industrial Revolution, is happening at an exponential pace. Disruptive technologies and innovations are a reality across all industries and sectors today. The real challenge in this stage is to have leaders who are able to understand the new and rapidly changing consumer behavioural pattern, use the latest technology to enhance the customer experience and invest in research and development to benefit from the digital revolution.

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Amidst all these, the need to have ethical leaders will be of utmost importance. With digital revolution, the definition of privacy or our notions of sense of privacy is fast changing. Leaders have the added responsibility to ensure that customer data is protected and not compromised on any circumstances

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Mohamed Roushdy Head of Technology, Dubai Asset Management

The Fourth Industrial Revolution would affect all our life and business eco system, the way we do things in the past would dramatically change, as well as the role of many people might change too. You might consume services from a service providers and sell or share some of these services with someone else. Hence, you could be a consumer and a provider of service at the same time, making us more connected like never before. This is a real disruption to the way we had been living and using technologies. But how would these impact leadership? Leaders will have to be equipped with more skills than they ever had as they will have to lead both people and machines (robots) and make decisions in the face of more uncertainties but more possibilities too. Based on the above

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arguments, leaders of the Fourth Industrial Revolution would need to have the following competencies: •

Agility

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Continuous learning and personal development

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Ability to manage and lead teams in different geography, time zones and work place

•

Emotional intelligence

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Social intelligence

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Being an influencer

•

The ability to co-create

•

Adaptability

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POINT OF VIEW

THE NEXT BIG THING

MOHAMED AZEEM SAHEER

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O

rganizations are facing several critical pressures, including short supply of leaders, the need to develop and engage employees, and issues with turnover. Finding and keeping talent is no longer an HR challenge but a strategic business priority. Yet, most companies are unable to build lasting relationships with their employees in an effort to overcome these challenges. Instead of empowering employees with the tools they need to succeed, many companies feel threatened by their workforce and fearful of change.

In fact, when asked to define their company culture, 41% of companies described it as “controlling,” or a highly structured and informal place to work with little collaboration. With the emergence of a younger generation and the rise of the independent worker, companies must rethink their approach to talent and begin to prioritize the “individual.” They must provide a new mechanism for learning such using the new technologies —one that can adapt to the needs of a changing workforce and align closely with organizational objectives.

Following are the five key trends and best practices that companies should consider to transform their employees.

MEASURING EFFECTIVENESS

To determine if the learning strategy in place is driving business outcomes, companies must find a way to consistently measure its effectiveness. Companies should determine metrics in advance and include both business metrics and learning/HR metrics. Currently, most companies are considering team encouragement, employee engagement, and employee satisfaction over more concrete business metrics such as retention, turnover, and revenue per full-time employee.

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ALIGNING WITH BUSINESS OBJECTIVES WHILE INVESTING IN THE LONDON PROPERTY HAS ALWAYS BEEN A SECULAR DECISION BUT INCREASINGLY SHARI’A SENSITIVITIES HAVE ALSO BEEN OBSERVED BY SOME DEVOUT INVESTORS HAILING FROM THE COUNTRIES WITH PREDOMINANT MUSLIM POPULATIONS.

MOHAMED AZEEM SAHEER IS A CONSULTANTFUNCILITATOR AT FUNVERKS GLOBAL. HE IS A PRACTICING HUMAN CAPITAL PROFESSIONAL WHO IS SELFMOTIVATED, CREATIVE, RESULTSORIENTED, WITH 12 YEARS OF HIGHLY SUCCESSFUL BACKGROUND IN BANKING PRODUCTS & SERVICES.

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The learning of the past operated in silos where learning professionals had little interaction or input from other areas of the business. The learning of the future must be closely aligned to overall corporate strategies in order for companies to achieve results. Any program or technology investment should involve input from business leaders to ensure that learning is driving retention, engagement, and performance. For those companies that did align learning and business priorities (48%), more than 70% were able to improve company revenue.

CONSIDERING ADAPTIVE LEARNING

Adaptive learning is a methodology that breaks traditional models and allows employees to learn at their own pace. It has gained popularity with educational institutions, referred to as “adaptive teaching,” Employees can be monitored individually and in real time to determine what learning approach will best suit their needs. It has advantages for younger generations (Millennials & Generation Z) entering the workforce that have expectations around flexibility and interaction. Adaptive learning can be effective at improving efficiency, as well as employee engagement and retention since it allows employees to build confidence and overall expertise.

UNDERSTANDING SOCIAL

Companies are quickly embracing social media tools, as well as investing in social collaboration tools to better engage employees and foster a learning culture. Although social has become mainstream, companies still lack the knowledge and insight around how to use these tools for learning and development. Of the 59% of companies using social for their learning strategies, only 24% say they are effective.

One reason is that companies are limited in the social tools they are using. Companies are using document sharing, discussion forms, and blogs, but they aren’t generally using video or micro-blogs—which our research shows are more effective—to improve their learning functions. Companies must educate themselves on the value of social learning and invest in providers that offer solutions that drive business outcomes.

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GOING MOBILE

Mobile has transformed the way companies work, interact, and collaborate. Some 8 percent are using mobile learning apps, most companies recognize that mobile learning solutions can improve adoption, expand global reach, and engage users better, but do not understand how to execute a mobile strategy. Additionally, some organizations find it challenging to determine what options are available and which providers to consider. Regardless of the barriers they are facing, organizations looking to improve their learning functions will need to make mobile part of the equation and determine what requirements they have in order to select a technology partner.

Most organisation spend large amount of money on Training budgets but most of them doesn’t know how effectively it has contributed to the organisational goal. Rather spending on traditional methods, organisations should look into “The Next Big Thing” in Learning & Development, which will be an appropriate move with the next generation workforce.

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I ISFIRE REPORT

HOW CAN

SL AMIC FINANCE SUPPORT

HUMANITARIAN RELIEF EFFORTS?

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MS. LISA DOUGHTEN, CHIEF OF THE UNITED NATIONS POOLED FUND MANAGEMENT BRANCH AND OF THE CENTRAL EMERGENCY RESPONSE FUND (UNCERF) SECRETARIAT, WAS THE CHIEF GUEST AT THE 2018 GLOBAL ISLAMIC FINANCE AWARDS, ON 29 SEPTEMBER IN SARAJEVO, BOSNIA AND HERZEGOVINA. THE SPEECH SHE DELIVERED HIGHLIGHTED THE POTENTIAL OF ISLAMIC FINANCE IN CONTRIBUTING TO ALLEVIATING HUMANITARIAN NEEDS WORLDWIDE, CALLING STRONGLY ON INDUSTRY LEADERS TO PARTNER WITH THE UNITED NATIONS CENTRAL EMERGENCY RESPONSE FUND AND TO SUPPORT THE OVER 200 MILLION MEN, WOMEN AND CHILDREN IN DESPERATE NEED OF HUMANITARIAN ASSISTANCE TODAY.

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KEYNOTE SPEECH FOR MS LISA DOUGHTEN, CHIEF OF THE CERF SECRETARIAT

2018 Global Islamic Finance Awards Sarajevo – 29 September 2018 (As delivered)

Your Excellency, President Izetbegovic, Your Excellency President Guelleh, Excellencies, Distinguished guests, Ladies and gentlemen, Dobar dan As-salamu ‘alaykum I am honored to address you as the Chief Guest of the 2018 Global Islamic Finance Awards, here in Sarajevo, BosniaHerzegovina; a city and country very near and dear to my heart, as I spent five years here in the early 1990s. It is in this very city that I began my career in humanitarian assistance with the United States Agency for International Development, through which I worked to provide life-saving support during the war. And then immediately following the war, I managed an emergency shelter and infrastructure repair program, which facilitated the return home of over 10,000 people displaced by the war.

Almost 25 years later, I am speaking to you today in my capacity as the Chief of the secretariat of the largest and most comprehensive emergency response fund in the world – the United Nations Central Emergency Response Fund, also known as ‘CERF’. Together, with 18 Country-based pooled funds, we mobilize and allocate over US$1.3 billion dollars every year to respond to humanitarian crises worldwide.

I have been asked to say a few words about what we do, and to introduce what is being considered by the management of GIFA as a new award - the GIFA Award for Humanitarian Assistance.

Credit: OCHA

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This image needs very little introduction. Last August, escalating violence and discrimination in the Rakhine State in Myanmar culminated in what would become the world’s fastest-growing refugee crisis. We have all seen the images in the media. Entire villages were burned to the ground, families were separated and killed, and women and girls were raped and brutalized.

Taking with them only what they could carry, more than 700,000 men, women and children fled their homes and walked for days, in search of safety and refuge in Bangladesh, Indonesia and Malaysia. Tens of thousands of Rohingyas – mostly women and children – found temporary shelter in a Bangladeshi refugee camp near a place called Cox’s Bazar, which rapidly turned into the most densely populated refugee camp in the world.

Practically overnight, these tens of thousands of people – heavily traumatized after witnessing unspeakable atrocities – suddenly found themselves in urgent need of the most basic things that you and I take for granted - clean drinking water, food, shelter, basic sanitation facilities and medicine. The approaching monsoon season would only make things worse.

Every humanitarian emergency is unique, but all emergencies have two things in common: great human suffering, and an urgent need for resources to alleviate that suffering. Most importantly, response efforts must be fast, as time lost means lives lost. Every second counts. This is where the Central Emergency Response Fund comes in.

The Central Emergency Response Fund (known as ‘CERF’) was established in 2006 as the United Nations’ global emergency response fund. CERF pools voluntary contributions from donors around the world into a single emergency fund. CERF’s support is available immediately to enable humanitarian aid organizations to deliver life-saving assistance whenever, and wherever a crisis happens.

In addition, rather like an air traffic controller, CERF also serves as the ultimate coordinator of humanitarian assistance. CERF maximizes strategic cooperation between partner organizations on the ground, such as UNICEF, the UN Refugee Agency, and the World Food Program, thereby eliminating duplication and fostering coordination and efficiency. This way, donor funds are channelled as quickly and as transparently as possible to where they are needed most, when they are needed most.

In the case of the crisis in Myanmar, early and quick funding from CERF enabled the humanitarian response system to provide life-saving aid and protection to more than 700,000 refugees, much faster and much more effectively than would have been possible otherwise.

Credit: OCHA

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Of course, the crisis in Myanmar is only one of many crises we face today. Think of the people affected by the conflicts in Syria and Yemen, or the droughts in Mauritania and South Sudan. For the purpose of this audience, I have focused my examples on Muslim-majority countries, but of course disasters strike anywhere at any time, cutting across race, religion, country, class, and culture. The strength of the Central Emergency Response Fund is that it is completely impartial and neutral, and is truly an emergency fund that is available to all, and is funded by all.

The scope and scale of the crises worldwide are enormous, but more importantly, the effect that they have on vulnerable people everywhere is unimaginable. As we speak, it is estimated that there are more than 200 million people globally in desperate need of humanitarian assistance and protection. That’s more than 6 times the entire population of Malaysia or Saudi Arabia.

If we are to collectively honor the noble principle that receiving life-saving humanitarian aid is a right, and providing that aid is a duty—then there is much more that will need to be done. One step in addressing the challenge is to raise awareness for the issue.

Credit: OCHA

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FOR THOSE COUNTRIES THAT REQUIRE ONGOING STRATEGIC COORDINATION AND SUPPORT, WE HAVE ALSO CREATED ‘COUNTRY BASED POOLED FUNDS’

Credit: IFRC

For obvious reasons, the Rohingya crisis raised significant media attention worldwide, not least in Muslim communities. Millions of people felt united with the victims in Myanmar, and went out of their way to donate time and resources in support of their brothers and sisters in need.

Not all crises receive this level of media attention, or they only reach the headlines for a very short period of time. In today’s fast-moving world, when crises are no longer front-page news, they are easily forgotten. And as a result, fundraising efforts come to a screeching halt. I am proud to say that in these cases, CERF is not only the first to arrive on the scene, but also the last to leave. It is this fact that the United Nations Secretary-General so eloquently highlights every time he speaks about the CERF. For those countries that require ongoing strategic coordination and support, we have also created ‘Country Based Pooled Funds’. As the name suggests, our Country Based Pooled Funds operate at the country level – often working in complement to CERF, to enable strategic collaboration between l ocal, national and international first responders. In 18 countries where the crises are long lasting, as in Afghanistan, Nigeria and Somalia, for example, Country-Based Pooled Funds provide vital support to more than 650 local partners including the Red Crescent and Islamic Relief, as well as other nonprofit organizations.

As images speak louder than words, allow me to show you a short video that was created for the United Nations General Assembly High Level event on CERF last week in New York: https://youtu.be/BIZmNHRNckY As you will have seen, CERF enjoys the support of 126 governments, but also, and importantly, donations from businesses, individuals and foundations, also in the form of zakat.

Excellencies, Ladies and gentlemen, As all of you know, the world of humanitarian assistance, and the world of Islamic finance, are not that far apart. In fact, through zakat, sadaqah, and the institution of waqf, the Islamic finance sector was inherently built on the notion of humanitarian assistance. Indeed, this is the reason why I am here today.

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I am humbled to be surrounded today by some of the brightest and most influential leaders in Islamic Banking and Finance, who have just received the most prominent awards in the industry in recognition of their remarkable contributions to the field.

CONGRATULATIONS. I have no doubt that through intelligent innovation, and collaborative partnerships between multiple stakeholders, including CERF and Country Based Pooled Funds, that concrete solutions to scale up humanitarian assistance are well within our reach. Already the concept of Islamic Social Finance has laid a great foundation for such breakthroughs, as have ‘green sukuks’ and other socio-economic instruments such as zakat, waqf, and qard al-hassan.

Surely, where there is a will, there is a way.

In conclusion my key message to you today, is not about how desperate the humanitarian situation is. On the contrary, the message that I want to deliver to you today is one of hope.

Hope that we will see humanitarian assistance not only as a mere responsibility, but as an opportunity to deliver on our core values.

I WOULD LIKE TO COMMEND THE MANAGEMENT OF GIFA FOR THEIR VISIONARY THOUGHT LEADERSHIP, AND THEIR DETERMINATION TO TURN THEIR AMBITION INTO ACTION.

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In recognition of the growing need for strategic humanitarian support and in acknowledgment of the urgent need for solidarity and collaboration to address this issue, the management of GIFA has decided to inaugurate a special award for Humanitarian Assistance. This Award aims to recognize Islamic financial institutions for their collaborative efforts to reinforce strategic humanitarian assistance.

I would like to commend the management of GIFA for their visionary thought leadership, and their determination to turn their ambition into action.

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Hope that we will rise to the challenge and unite in our efforts to support our brothers and sisters who cannot survive without our help. And, hope that my words today will spark the beginning of genuine conversations about how we can build partnerships to make a real difference.

I urge you to make strategic humanitarian assistance a priority within your institutions and welcome the opportunity to speak with you about how we can create a world where no one is left behind. 200 million men, women, and children in desperate need of humanitarian aid right now - are counting on us.

THANK YOU VERY MUCH.

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WHAT IS CERF?

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WHAT ARE THE COUNTRY-BASED POOLED FUNDS? IDENTIFYING HUMANITARIAN NEEDS

Aid workers in the ground identify the most urgent types of humanitarian assistance that affected people need.

CONTRIBUTION

Donors provide voluntary contributions to specific CBPFs.

MANAGING FUNDS

REQUESTING FUNDS

Humanitarian partners work together to prioritize life-saving relief activities.

They request CBPF funding through the Humanitarian Coordinator.

Contribution are pooled into single funds

ALLOCATING FUNDS

Based on expert advice from aid workers and on needs the Humanitarian Coordinator allocates CBPF funding

SAVING LIVES

Relief organization use the money for urgent aid operations. They always track spending and impact, and report back to the Humanitarian Coordinator W W W. I S F I R E . N E T

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INNOVATION

IN ISL AMIC

CREDIT CARDS PROPOSED MODEL FOR DIFFERENTIATION TOWARDS RESPONSIBLE FINANCE

SUHAIL SINNALEBBE

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The common advice in many personal financing books is to dispose the credit card as most people tend to suffer from impulse purchasing behaviour. We end up buying the things we don’t need because of easy access to financing through our credit cards. The debts keep mounting along with soaring interest rates in credit cards, and as a result many have been declared bankrupt. Last year, 1,598 Malaysians were declared bankruptcy due to credit card debts.

An interesting advice to circumvent the problem of impulse purchases is to use ice glass method, which is to put the credit card in a glass of water and leave it to freeze.

Whenever we decide to use our credit card, we would need to wait until the ice melts. This ‘cooling off’ period will help us evaluate our buying decisions and gives an opportunity to control our impulse behaviour. However, this method may be outdated and not effective to all as people often carry their credit cards with them.

Another intriguing way is proposed by Dan Ariely, a well-known and published MIT and Duke Professor of psychology and behavioral economics, who suggested a self-control credit card as a way of enabling people to restrict their spending.1

Here, the card holders could decide in advance how much money they want to spend in grocery, entertainment, etc each month. In the case they exceed the limit which they had imposed on themselves, they can select their own penalties for such lapses. Ariely suggested several penalties such as “they could make the card get rejected; or they could tax themselves and transfer the tax to Habitat for Humanity, a friend, or long-term savings. This system could also implement the “ice glass” method as a cooling-off period for large items; and it could even automatically trigger an e-mail to your spouse, your mother, or a friend”. Such self-control credit cards will enable cardholders to engage and interact with the bank more meaningfully.

Islam discourages taking unsustainable debts. It is only appropriate to take on debt to fulfil one’s needs where there is a reasonable expectation of the ability to repay the debt.

Thus, Islamic banks could innovate their credit cards and build this process to help customers take control of their financial health.

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What is in it for Islamic banks you might ask? Why would Islamic banks want to forego profit made through impulse purchasing behaviour of their clients? With this innovation, Islamic banks can differentiate themselves from conventional banking and follow not only the letter of the Islamic law but the spirit of it too.

This will attract many more clients towards Islamic banking. This innovation is also in line with the Bank Negara Malaysia’s (The Central Bank of Malaysia) agenda on Value Based Intermediation. Furthermore, banks do not want clients who default. Hence, this innovation will potentially reduce bad debts and subsequently help clients to take control of their financial health, thus creating a true win-win situation for both clients and banks.

This process innovation is easy to implement and will have much larger impact on the bank’s profitability, brand and society at large.

But the question remains:

1.

Dan Ariely (2008), Predictably Irrational pp125.

SUHAIL SINNALEBBE IS RESEARCH LEAD (ISLAMIC FINANCE) AT REDMONEY. HE IS CURRENTLY PURSUING HIS PHD IN AT THE INTERNATIONAL ISLAMIC UNIVERSITY MALAYSIA.

ARE ISLAMIC BANKS READY TO DISRUPT THE CREDIT CARD MARKET?

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CRYPTO-

CURRENCY IN ISLAMIC FINANCE

DR. MUNIRUDDEEN LALLMAHAMOOD

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rypto-currencies are a reality that we neither can ignore nor avoid. This short article will not discuss the functionality of the digital currency but provides a personal view from the Shari’a perspectives. To start with, few people understand the role of Shari’a in Islamic finance. In general, the Shari’a as a system of living has been revealed primarily to protect human well-being (maslahah) and this being one of the general objectives that it plans to realize, the Shari’a therefore aims to facilitate the realization of maslahah and the removal of hardship.

For instance, in financial transactions, it is realized by guaranteeing freedom of contract within an atmosphere of fairness, equity, justice and high morality. In other words, the Shari’a is designed at ensuring equal and fair business transactions and protects parties against exploitation, fraud, misrepresentation, explicit or implicit harm and injustice to anyone in the contract. The Quran (5:1), God says: “O ye who believe! Fulfill your undertakings.”

Hence, the Shari’a regulates all aspect of life (social) and transactions (economic). Notwithstanding, in any transaction, money is the main consideration.

The history of money began well before the advent of Islam and Islamic civilization. Gold, silver and copper coinages were commonly used in pre-Islamic Arabia. Money while being widely discussed in Islam is a determining factor to mitigate whether a transaction is void, lawful or unlawful (Riba). Riba is also interpreted when money produces money, work is hindered, unemployment spreads, prices go up, money becomes monopolized by rich people, and the gap between the poor and the rich becomes wider.

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Some examples of Money in the Quran are: God will ask man about money; how he earned it, and how he spent it (Quran 3:186) and God has made it clear that money is the essence of life and that people’s lives depend thereon [Quran 4:5]. This means that a person lives by it and if he loses it he will be lost. As life depends on it one should preserve it in order to fulfil one’s needs. Hence, preservation of wealth is strongly recommended in Islam (a topic which requires full research).

Having said that, Islam recognizes the importance of money and prefers the usage of money over barter system although it is permissible that capital can be contributed in the form of fungible assets. The characteristics of money therefore according to the Shari’a (unanimously agreed upon by majority of the Scholars) shall contain the following conditions which are derived from the “ruling of currency trading”.

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• Money is a medium of exchange • Money has a store of value, and • Money is a unit of measurement Similarly, money has no intrinsic value.

Most currencies are issued by Central Banks and thus become legal tender. However, legal tender is not a Shari’a requirement on the basis that a currency is generally accepted by the public, fulfils the role of money irrespective of whether it is legal tender or not to acquire goods and services. This argument is based on the fact that there were many forms of unregulated currencies in the past and during the time of the Prophet Muhammad (pbuh). In the present day, it is argued by some scholars that the governments (central bankers) have a role to play in managing the demand and supply of money, including being the institution to endorse a currency as legal tender.

LEGAL TENDER IS NOT A SHARI’A REQUIREMENT ON THE BASIS THAT A CURRENCY IS GENERALLY ACCEPTED BY THE PUBLIC, FULFILS THE ROLE OF MONEY IRRESPECTIVE OF WHETHER IT IS LEGAL TENDER OR NOT TO ACQUIRE GOODS AND SERVICES.

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Some have also claimed that crypto-currencies are not permissible due its volatility.

THE MOTIVATION OF CRYPTOCURRENCY IS ABOUT THE SHIFT FROM INTERMEDIARIES AND REGULATED CURRENCIES. BEING DIGITAL IN NATURE, IT HAS TWO SIGNIFICANT CHARACTERISTICS THAT OUR EXISTING CURRENCY DOES NOT CARRY.

The issue of volatility is common to any currency and it is a human behaviour. The Shari’a does not interfere in demand and supply.

In the case of crypto-currencies, the sum is digitally transferred. The motivation of cryptocurrency is about the shift from intermediaries and regulated currencies. Being digital in nature, it has two significant characteristics that our existing currency does not carry. First, crypto-currencies are borderless and second they are costless in the long run. It is clear that crypto-currencies issued by other than central bankers do not have seigniorage value - the cost of printing them and owning it are irrelevant in digital currency.

On top of the above, “Blockchain” is incomplete without digital currencies / cryptocurrencies. Blockchain has become a reality and a powerful digital platform that can be quickly and easily accessed and shared by many. It has various levels of transparency depending on application, immutable (you can only add to it – you cannot alter history) and cryptographically secured. Meaning to say that everything that we do in this world will be block-chained for the hereafter. The Quran 99:7-8 mentioned that “Then shall anyone who has done an atom’s weight of good, see it and anyone who has done an atom’s weight of evil, shall see it”. This is an example of the Quran does not only contain stories of the past, but speaks also about the future.

Finally, the future of crypto-currencies depends on regulators. Once regulatory standards are refined and adopted, crypto-currencies will play an essential part in our life. This will be the end of counterfeit notes in the market and transparency (enemy No.1) in the corporate world will be more prevalent.

In the Islamic finance arena, the Accounting and Auditing Organization for Islamic Financial Institution (AAOIFI) has issued the first Shari’a standard on “Trading in Currencies” and recently the Shari’a Standard on Gold. Both standards could consider having relevant information on the Shari’a rulings relating to digital currencies. Any currency which is acceptable to any community, is a currency. It may be subject to the regulatory requirement but due diligence exercise of the mining and the operations are pre-requisite for Shari’a approval.

DR. MUNIRUDDEEN LALLMAHAMOOD IS CEO OF THE CENTURY BANKING CORPORATION. PRIOR TO HIS APPOINTMENT, HE WAS A CONSULTANT IN ISLAMIC FINANCE AT THE CENTRAL BANK OF MAURITIUS.

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This summer, Cambridge IFA successful completed its 4th edition of the Cambridge Islamic Finance Leadership Programme (“Cambridge-IFLP�), which was held from July 29 to August 3, 2018 at Clare College, a member of the University of Cambridge syndicate.

Founded in 2013, Cambridge-IFLP continues to contribute to global efforts in developing a new breed of leaders in Islamic banking and finance.

Since then, about 100 men and women have graduated from the programme.

Cambridge-IFLP enjoys the reputation of being the first and the only global leadership programme specifically structured for middle and upper-middle management personnel of Islamic financial institutions. Designed and structured by Cambridge IFA, the programme is delivered by some of the most influential leaders in Islamic banking and finance. This year, a total of 50 delegates, speakers and mentors from 15 countries from Europe, Middle East, Africa, Central Asia and Asia participated in the 5-day residential programme.

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Designed on the foundation that leadership can best be understood by studying and closely observing the leaders themselves, the Cambridge-IFLP is designed to allow delegates to benefit from the presence of a number of mentors who are leading personalities in the global Islamic financial services industry.

Notable mentors and speakers at this year’s programme included Adnan Ahmed Yousif (President & Chief Executive of Al Baraka Banking Group), Eng. Hani Salem Sonbol (CEO, International Islamic Trade Finance Corporation, Jeddah), Iqbal Khan (CEO of Fajr Capital), Sheikh Nizam Yaqubi (renowed Shari’a scholar), Stella Coz, CBE (Managing Director of DDCAP Limited, London), Sirajuddin Aziz (CEO – Group Financial Institutions, HBZ Global Operations), Mohamed Amersi (Chairman and Founder of a number of telecom companies and a pioneering personality in Islamic legal documentation), Dr. Lionel Paolella (University Lecturer, Cambridge Judge Business School), Richard Thomas OBE (Managing Director, Sustainable Economy Limited), Dr. Zahid Parvez (Principle of Markfield Institute of Higher Education, UK), Professor Mehmet Asutay (Professor of Islamic Political Economy at Durham University Business School), Khalid Howladar (Managing Director/CEO and Founder, Acreditus, Dubai), Iqbal Nasim (CEO, National Zakat Foundation), Dr. Jamshaid Anwar Chatta (Chief Banking Researcher and Islamic Finance Expert at Central Bank of Kuwait), and Waheed Qaiser (Executive Chairman, Maxim LLP).

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IT IS A RIGOROUS PROGRAMME THAT DEMANDS NOTHING LESS THAN EXCEPTIONAL PERFORMANCE IN LEADERSHIP ACTIVITIES, ACTIVE PARTICIPATION IN LEADERSHIP INTERVIEWS AND OUTSTANDING CONTRIBUTIONS TO LEADERSHIP TALKS THE PROGRAMME’S SCOPE AND CONTENT ARE FIRST RATE, AS EVIDENCED BY THE DIVERSITY OF DELEGATES, IN TERMS OF THEIR GEOGRAPHY, PROFESSIONAL PROFILE AND AFFILIATION

“It is a rigorous Programme that demands nothing less than exceptional performance in Leadership Activities, active participation in Leadership Interviews and outstanding contributions to Leadership Talks,” said Dr. Sofiza Azmi, Programme Director Cambridge-IFLP and CEO of Cambridge IFA. The speakers and mentors are primarily drawn from the industry, making it a unique programme as most leadership programmes heavily draw upon academia for delivery. “The programme’s scope and content are first rate, as evidenced by the diversity of delegates, in terms of their geography, professional profile and affiliation,” she added.

For this year’s programme, Cambridge-IFLP included 8 Leadership Interviews, 8 Leadership Talks, 2 Leadership Workshops, 3 Leadership Activities, case studies and social activities. “Leadership workshops, along with interactive social activities and Leadership Activities, allow the delegates to seek mentorships and develop relationships with these leaders as delegates will be able to interact with them formally and informally,” explained Dr Sofiza. Leadership Interviews provided great first-hand insights into leadership values, philosophies and qualities as well as an opportunity for delegates to flesh out questions to the leaders themselves.

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During his leadership interview, Adnan Ahmed Yousif, President and Chief Executive of Al Baraka Banking Group, shared 3 leadership qualities that make great leaders – discipline, efficiency and teamwork, which forms the foundation of superior leadership. While natural talent is necessary and important, whether as a business leader, CEO or manager; talent alone is simply not enough. What many fail to understand is that what determines who will become an extraordinary leader is the discipline to practice, to perpetually learn and improve, and to provide a sound example to others in the organisation. Like so many other qualities, discipline begins at the top and filters down throughout the organization. “Great leaders exercise self-discipline but also require discipline of their teams,” he explained.

“You may be a leader in a team, but you must work as a team,” emphasised Adnan Ahmed Yousif. This means that a true leader should not consider himself as the supreme authority. Instead he should realize that he is part of the organization as a whole. On the point of efficiency, he said that leaders with a strong results orientation tend to emphasize the importance of efficiency and productivity and to prioritize the work that has the highest value.

When asked what leaders should focus on today to meet modern day challenges, Eng. Hani Salem Sonbol, CEO of the International Islamic Trade Finance Corporation (ITFC); pointed out that leaders cannot do business as usual given the ever changing corporate environment. He stressed that as a leader, you need to be flexible and adaptable, steering change and responding to change.

“Leaders need to adapt to the changes and the types of challenges that come with them.

At the same time, they must be able to make sure their team have updated skills for the future,” he said.

On the point of whether leaders make an organisation or the organisation makes a leader, Hani Salem Sonbol believed in the latter. However, he pointed out although leaders build organisations, one cannot ignore the important of organisations in grooming leaders. He further added that life is a big university on its own and you learn on a daily basis. “Through life experiences, you become more rational in making decisions, more patience and more tolerant,” he added.

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According to Mohamed Amersi, Chairman and Founder of a number of telecom companies and a pioneering personality in Islamic legal documentation, in the face of disruptions; leaders should be proactive.

They should be able to anticipate where the industry is moving and anticipate the needs in the country they are operating in.

“It’s imperative that leaders remain one step ahead of the competition in terms of what you are offering to your clients so that you always stay relevant and stay competitive,” he added.

Today’s leaders need to understand the market and adjust very quickly to the disruptions that are taking place.

“Previously it took few years before new trends are being set. Today new trends are set within few months. If you don’t have the nimbleness or agility to adapt, you will miss out,” stressed Mohamed Amersi. On the issue of making corporations more socially oriented in their businesses and not just for profit, Mohamed Amersi spoke on the new initiative by the British Academy called the “The Future of the Corporation”, which addresses the purpose of business and asks what its role in society should be. Not so long ago, technology companies were hailed as offering a fresh and beguiling approach to business, but these companies together with other key players in the “sharing economy” are now attracting growing criticism over how they use their increasing power and influence. Hence, this beg the question: Is the corporation adequately equipped and structured to deal with the challenges of the future?

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Richard Thomas, OBE (Managing Director of Sustainable Economy Limited), shared his views on sustainability and leadership. He emphasised on the role Islamic finance can play in sustainability, particularly in reference to ethics and governance. “Islamic banking is in the position to provide a sustainable model in its management structure, shareholding structure, corporate governance and the relationship it has with its customers; based on its values and sustainability around the ethos of Islamic finance,” he explained.

He went on further to discuss sustainable economy. When asked his views on why Islamic finance is lagging behind its conventional counterparts in sustainable finance considering the overall goals of Shari’a (maqasid) in operations of Islamic finance, he opined that we shouldn’t look at conventional sustainability sector as a good example. He stressed that Islamic finance should be seen as part of a wider movement towards the promotion of sustainability as a key element of economic life. Islamic finance promotes risk-sharing, connection to the real economy and emphasizes financial inclusion and social welfare.

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CHANGE CAN ONLY HAPPEN WHEN YOU ARE CONVINCED, COMMITTED, MOTIVATED AND SEE THE BENEFIT OF MAKING THAT CHANGE. ANOTHER SITUATION WHERE CHANGE CAN HAPPEN IS WHEN YOU HAVE A MENTOR AND YOU BELIEVE IN THE MENTOR. BUT MORE IMPORTANTLY, PEOPLE ARE MORE WILLING TO CHANGE WHEN THEY SEE THEIR LEADERSHIP IS ACTIVELY DOING THE SAME.

Iqbal Nasim, CEO of National Zakat Foundation, emphasized upon the role of zakat in effective management and customer consciousness of social responsibility. He also cautioned against quantitative ambitions as he opined that this is a quite a dangerous way of looking at things. “Most charity works like this where they have certain targets and certain fund raising amount to achieve in a certain period of time. To a certain one can understand where this comes from but it can be quite damaging to the culture,” he added. “Money becomes the object basically and numbers become a focus. Whereas it’s the quality of actions or activities of service that should be the focus on a day to day basis.”

On the topic of leading change, Waheed Qaiser who is the Executive Chairman of Maxim LLP, shared some of his personal experiences and offered valuable advice.

Successful change is one of the biggest problems that modern organizations face.

In the fast-changing world, the strategic imperative to change is often clear: Without doing things differently, organisations are unlikely to succeed, or remain relevant to the changing landscape around them. But changemanagement research has demonstrated time after time that organizational change initiatives fail more often than they succeed, despite the resources put into creating change management processes.

“Change can only happen when you are convinced, committed, motivated and see the benefit of making that change,” he explained.

“Another situation where change can happen is when you have a mentor and you believe in the mentor. But more importantly, people are more willing to change when they see their leadership is actively doing the same.”

Although it is important for leaders to have vision, authority, and ambition, but it is more important for them to reach out to others to make sure that everyone feels involved in the process of change. Leaders who don’t do this, who attempt to impose their vision from the top-down; might manage to achieve something that looks like their vision, but in reality is in fact hollow and empty.

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EVERYTHING HAS A LOGICAL PATH. BUT WHEN YOU APPLY LOGIC TO HUMAN BEINGS, THEY ARE NOT NECESSARILY LOGICAL. AND THIS IS WHERE EMPATHY COMES IN. AND IT’S THROUGH THIS COMBINATION OF LOGIC AND FEELINGS THAT WE CAN APPLY ONE OF THE MOST IMPORTANT FACTORS IN LEADERSHIP – EMPATHY FOR OTHERS.

During his interview, Khalid Howladar (Managing Director/CEO and Founder of Acreditus) presented two key skills to leadership – logic and empathy. “Everything has a logical path,” he said. “But when you apply logic to human beings, they are not necessarily logical. And this is where empathy comes in. And it’s through this combination of logic and feelings that we can apply one of the most important factors in leadership – empathy for others.” Empathy is the ability to resonate with how others are feeling. This enables you to gain rapport with others and thereby motivate them to do better as it allows you to sense the emotions of your employees and respond accordingly.

True empathy combines understanding both the emotional and the logical rationale that goes into every decision.

Talking on the topic ‘Leader as a Strategist’, Dr. Lionel Paolella (University Lecturer, Cambridge Judge Business School) discussed strategic leader as a thinker, competitor and sensemaker.

“Strategy is very important for market identity,” explained Dr. Lionel Paolella. “It is like a glue that binds the organisation together. He further emphasised that strategy is important for competitive advantage. Strategy implemented by the management should enable the organisation to use its core competency in responding the chance of external environment and neutralize the threat.

With a number of Leadership Talks given by industry leaders, CambridgeIFLP delegates benefitted from in-depth knowledge and understanding from industry experts on how to develop themselves into effective and influential leaders in their respective organisations and in the global Islamic financial services industry.

Leadership Talks covered wide range of topics and perspectives including structuring and product development, human resource development, and leadership perspectives.

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In her Leadership Talk titled “Leadership Role of Women in Islamic Finance: How Can Women Climb Up the Career Ladder in Islamic Banking, Finance & Business”; Stella Cox, CBE (Managing Director of DDCAP Limited and Chair of TheCityUK Islamic Finance Markets Advisory Group), spoke at length on human capital development. She stressed that in order to strengthen the Islamic financial sector’s human capital ecosystem, there are at least 4 identifiable issues that require ongoing attention. These are (1) opening the industry’s door to new entrants and developing and retaining talent; (2) extension of practical knowledge and awareness opportunities (placement, internship, mentoring) to complement academic and professional qualification; (3) improved collaboration between educators and industry relevant firms; and (4) national and cross border collaboration between providers of education, training and qualifications to ensure consistency and promote best practice.

On the issue of women’s participation and leadership in Islamic banking and finance, Stella Cox explained, “For Islamic financial services, as in global financial services, the presence of women in the workplace has been gradual. 30 years ago it was not commonplace in international banking for women to have senior relationship responsibility for multinational clients or those in Muslim majority countries.” However, despite the steady progress made in increasing women’s representation and attracting new, academically and professionally qualified women to our industry sector, retaining them is another matter. “Inability to retain is perhaps the principal reason that fewer women than are currently destined to, based upon qualification, achievements and ability, reach the highest levels of executive management or corporate practice within our industry,” she added.

The solution? “We need to address barriers to women in finance, as entrepreneurs and in business,” explained Stella Cox. “Having mentors, peers and forums to share experience very much assists in sharing the load, delivers a valuable support infrastructure, networking opportunities and a platform for promotion of self and business,” she added. Private sector engagement has also been crucial in addressing barriers to women in financial services. Citing ISFIRE’s research and qualitative evaluation and ranking of women in the broader Islamic financial services industry, she said that such groundbreaking initiative is important to highlight the many roles women play in contributing to the development of the global Islamic finance industry.

WE NEED TO ADDRESS BARRIERS TO WOMEN IN FINANCE, AS ENTREPRENEURS AND IN BUSINESS, HAVING MENTORS, PEERS AND FORUMS TO SHARE EXPERIENCE VERY MUCH ASSISTS IN SHARING THE LOAD, DELIVERS A VALUABLE SUPPORT INFRASTRUCTURE, NETWORKING OPPORTUNITIES AND A PLATFORM FOR PROMOTION OF SELF AND BUSINESS.

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The Leadership Talk by Professor Mehmet Asutay centred on Islamic Moral Economy for Emancipation and Empowerment. He highlighted that Islamic moral economy essentialises justice, but encourages for equality through the expansion of ihsan, for which he stressed that “this framework should constitute the objective of Islamic finance.” Professor Mehmat Asutay went on to say that Islamic finance so far has been successful in generating transactional base; but has not been able to contribute to the transformation of the societies and the ‘Islamic’ in Islamic finance is no longer visible beyond ‘fiqhi treatment of Islamic products.

TO BE A GREAT LEADER YOU NEED TO UNDERSTAND THE DIMENSIONS OF LEADERSHIP, BUT LEADERSHIP IS BEST UNDERSTOOD FROM A MULTI-DIMENSIONAL POINT OF VIEW TO WHICH HE PRESENTED THE 5 DIMENSIONS OF LEADERSHIP – KNOWLEDGE, VISION, ACTION, RELATIONSHIPS AND PERSONAL.

“As it has moved away from the substance, form and articulation of Islamic moral economy; hence creating divergence between aims of Islamic moral economy and the practice of Islamic finance,” he explained. Examples of such divergence includes relegation of social responsibility to charity; widespread practice of fictitious commodities and commodification; developmentalist objectives, SDGs and ESGs are not considered; and innovations towards convergence to existing market system in the sector creates further financialisation.

Professor Mehmat Asutay went on to stressed that “Islamic finance has to move into a new paradigm to fulfil the promise” and that “the objective cannot be ‘Islamic capitalism’ but a sharing economy for empowerment”. He further explained that this requires a knowledge economy to develop authentic institutions and instruments beyond mimicking and mirroring. He added that Islamic finance should be re-defined as “the art of protecting and financing people.”

Sirajuddin Aziz, CEO of the Group Financial Institutions, HBZ Global Operations; shared his views on leadership in Islamic financial institutions. According to him leadership is about leading people, influencing people, commanding people and guiding people. “But to be a great leader you need to understand the dimensions of leadership,” he emphasized. But leadership is best understood from a multi-dimensional point of view to which he presented the 5 dimensions of leadership – knowledge, vision, action, relationships and personal. The perspective gained from understanding leadership in all five dimensions can help you be more intentional in the practice and development of leadership.

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ACHIEVE GOALS THROUGH GOD ORIENTED (SEEKING PLEASURE OF GOD), VALUE AND PRINCIPLE ORIENTED (UNIVERSAL) AND AKHIRAH ORIENTED, I.E. MAXIMISATION OF LONG-TERM BENEFITS BY CONSIDERING IMPLICATIONS OF PRESENT ACTIONS ON LONG-TERM BENEFITS SUCH SUSTAINABILITY, JUSTICE, HUMAN WELL-BEING.

Talking on the subject of ‘Islamic Leadership in a Globalised World’, Dr. Zahid Parvez said that living through a period of unprecedented and transformative change requires new visions for leaders to be successful and greater ability to adapt due to continuous change.

This involves adopting new approaches, acquiring new skills and new tools as changing environments will demand new and changing organisational structures (ways of organising) and new ways of leading. Hence, three leadership competencies are required for future leaders include leading self, leading people and leading organization.

Dr. Parvez also explained the fundamental differences between conventional leadership and Islamic leadership. Whilst the orientation of conventional leadership is premised on material success, relativism and duniya (short term), Islamic leadership according to Dr Parvez “achieve goals through God oriented (seeking pleasure of God), value and principle oriented (universal) and akhirah oriented, i.e. maximisation of long-term benefits by considering implications of present actions on longterm benefits such sustainability, justice, human wellbeing.

In one of the leadership workshops conducted

by Kamran Sherwani (Shari’a Advisor at ADCB Islamic Banking); he raised the question “Why are Islamic banks forced to mimic conventional products?” He explained that mimicking itself is not an issue if all Shari’a-compliant structure and documents have been used. He argued that currently the industry is forced to mimic the profit rates, which is almost equal to the interest rate of conventional banks. For example, even though Islamic banks are offering profit-sharing investment account, the losses are not passed on due to profit smoothing technique used as a means to avoid displaced commercial risk problems.

Hence, Islamic leadership places greater emphasis on soft factors such beliefs and values; knowledge and insights that provide foresight and wisdom (hikmah); and personal abilities and competencies.

He explained that belief and values include iman (vision and conviction), niyyah (motivation and drive), taqwah (conscious of moral behaviour/conduct), shura (considering issues from multiple perspective), tawakkal (confidence, courage, trust in Allah that enables sabr and sacrifice) and muhasibah (evaluation, learning from doing, accountability).

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In her closing remarks at the end of the 5-day programme, Dr. Sofiza expressed her appreciation to all the speakers and delegates whom have contributed to the success of the programme. She added that “Cambridge-IFLP has achieved its objective of creating the next generation of Islamic finance leaders. I am happy to see how this programme has, since its inception, helped create long term relationship between delegates from different parts of the world, all of whom have come together for a common goal of learning from existing leaders and playing an active role in steering Islamic finance industry forward.” Dr. Sofiza also announced that the 5th Cambridge Islamic Finance Leadership Programme will be held from 8th July till 12 July, 2019.

During the 5 days at Clare College, delegates took part in several social activities that are a must on the “to do” list when one is visiting the University of Cambridge. This included punting on the River Cam and enjoying one of Shakespeare’s famous play at King’s College garden. During the garden party held at the Fellow’s Garden, delegates had the opportunity to enjoy the British summer weather while at the same time horned their leadership skills during the Cambridge IFLP Treasure Hunt activity organised on the college grounds.

This year, six Cambridge Islamic Finance Leadership Awards were announced. These awards were given to outstanding delegates who had demonstrated exceptional leadership qualities during the programme, participated actively and constructively in all discussions, and their inputs added value both to the programme and other delegates. All delegates received their certificates from Iqbal Khan of Fjar Capital, whilst the Cambridge Islamic Finance Leadership Awards were presented by Sheikh Nizam Yaqubi. Winners were selected based on their active involvement and participation during the entire programme, the originality of ideas expressed and shared, demonstrated superior leadership qualities in all activities conducted and were of great inspiration and role model to others. The winners included: Abed Hakim, AVP and Head of Social Media at Dubai Islamic Bank; Dr. Jamshaid Anwar Chattha, Chief Banking Researcher and Islamic Finance Expert at Central Bank of Kuwait; Karimat Oluwatoyin Kekere-Ekun, CEO of Lotus Financial Services Limited; Ferdaus Toh Bin Abdullah, Deputy Chief Executive Officer of Affin Islamic Bank; Hjh Irma Suryani Mazwati Binti Haji Hashim, Assistant General Manager, Corporate Relationship of Bank Islam Brunei Darussalam and Salim Rashid Ali Al Maharbi, Acting Chief Financial Officer at Bank Nizwa.

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LEADERSHIP WALK OF THE UNIVERSITY OF CAMBRIDGE

ENJOYING THE OUTDOOR SHAKESPEARE PLAY AT KING’S COLLEGE GARDEN

LEADERS SOLVING CLUES TO TREASURE HUNT

YOU JUMP, I JUMP...

A SCENE FROM HARRY PORTER MOVIE - THE GREAT HALL WHERE DELEGATES HAVE THEIR LUNCHES

DELEGATES POSING FOR THE CAMERA IN THE GREAT HALL

MEMORY AT OLD COURT, CLARE COLLEGE

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GROUP PHOTO WITH ADNAN AHMED YOUSIF

BEAUTIFUL LADIES IN A BEAUTIFUL GARDEN AT CLARE COLLEGE

HAPPY FACES AT THE GARDEN PARTY

HAVING THIS BEST TIME OF MY LIFE... AT LEAST IN A PUNT

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SOLVING CLUES DURING TREASURE HUNT

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IFLP WHY CAMBRIDGE ISLAMIC FINANCE LEADERSHIP PROGRAMME? The leadership programme prepares the next generation of leaders by providing them with a unique mentoring opportunities, rigorous leadership training from renowned leaders as well as industry-specific case studies in Islamic finance.

WHO SHOULD ATTEND?

The Cambridge-IFLP aims at bringing Islamic banking and finance professionals in the middle and upper middle management positions, to the prestigious University of Cambridge for a period of 5 days, with a view to offer them an opportunity to become members of the most prestigious mentoring programme in Islamic banking & finance.

SALIENT FEATURES LEADERSHIP TALK: Covers a wide range of topics including structuring and product development, human resource development and leadership.

LEADERSHIP INTERVIEW: Leading personalities share their personal perspectives on leadership in this unique one-on-one interview.

LEADERSHIP ACTIVITIES: Identify leadership skills and traits in a fun way.

CAMBRIDGE CASES: Delegates apply their theoretical knowledge, develop team skills, and develop solution-oriented decision making SOCIAL ACTIVITIES: There will be numerous social activities, allowing the delegates to interact with each other and with mentors. These include a Garden Party, Punting, and a Leadership Walk, among many others.

http://cambridge-ifa.net/ CONTACT US AT: info@cambridge-ifa.net

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Cambridge-IFLP Alumni

SALIM RASHID

ALI AL MAHARBI Acting Chief Financial Officer, Bank Nizwa, Oman

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alim Rashid Ali Al Maharbi, Acting Chief Financial Officer at Bank Nizwa, has 22 years of banking experience with domestic and international bank. Prior to joining Bank Nizwa, he was Chief Manager, Commercial and Finance at Bank Sohar. He is a Certified Islamic Professional Accountant, Certified Accounting Technician from ACCA UK, holds B.A. Honors degree in Accounting from University of Bedfordshire, UK. He has varied experience in the field of Financial Reporting, Financial Accounting, Management Accounting, Internal Controls, Business Planning and Performance Management.

WHAT WAS YOUR EARLIEST AMBITION? My earliest ambition was to complete my studies with flying colours and to later establish myself in a demanding and growing industry where there are ample opportunities to learn and grow. I have always had a passion for numbers and analytics, so pursuing a career in finance has always been my ambition. On the other hand, I had always wanted to be well-equipped with general knowledge in various areas through my own study and practical experiences. I always believe that gaining diversified knowledge will not only help in professional growth but also towards an individual’s personal development, which in turn makes the individual a better person.

WHAT ARE YOU PASSIONATE ABOUT? One of the things that I am currently passionate about is the succession of the Islamic banking in the Sultanate of Oman, which is in itself a totally new experience. Islamic banking is very important towards the requirement of having Shari’a-compliant products as the preferred choice for those who are very keen in dealing with Islamic banks in order to avoid conventional banks that deal with riba transactions.

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Today, Oman’s Islamic banking industry is being referred as an example in the region for its growth within a short span of time.

I am very confident that Islamic banking in Oman would be a success story and will have a bright future Inshallah.

WHO HAS BEEN YOUR GREATEST MENTOR? My father has been the greatest mentor in my life. He passed away when I was eleven years old. During the time spent with him, I learned many things that helped shaped me and continued helping me in my life. My father was a real leader who had inspired those around him. He was regarded as an exemplary person due to his courage and passion to help others. I always consider my late father as my mentor.

WHAT ARE YOU MOST PROUD OF IN YOUR CAREER? Alhamdulillah, I have had many achievements in my career that I am proud of. The most important and remarkable achievement that I am proudest of is that I had taken the challenge of adding a higher responsibility in my profile and that I had quickly learned to deliver the best results as per what have been expected of me. I came out of my comfort zone and fixed the gaps that I felt was needed, by learning and taking on new things, and subsequently going beyond expectations.

WHAT DO YOU DO WHEN YOU ARE NOT WORKING?

WHAT IS YOUR FAVOURITE QUOTE AND WHY?

The nature of my work responsibilities has required me to spend long hours at the office. So when I am not working, I spend time with my family. I allocate part of my annual leave to go on holiday travels with my family so that we would be able to spend quality time together.

This is my way of compensating them for the time that I am away. It is important to manage a healthy work-life balance apart from taking excellent care of our health. In my spare time, I also like to catch up on my reading, keep up to date on football matches, and help my kids on their education-related needs.

“It is not the man who said, ‘My father was’, but the man who said, ‘Behold, I am’ “ This illustrates that the person should always depend on himself and his capabilities by building his own name instead of depending on his father. He should work to create his own name with his own achievements and not build himself on the achievements of others.

WHAT HAS BEEN THE MOST SATISFYING MOMENT IN YOUR LIFE?

If I could go back to my 21-year old self, my advice would be for me to allocate more time for learning and reading as I realise that these activities are very important in both my personal and professional lives.

The most satisfying moment in my life was the time I became a father.

It was a great feeling and gave me an impression that I would now have to be more responsible as my children were depending on me, and that my life does not only revolve around me anymore.

This had also placed a burden on me to become a good example to my children and because of that, I have been working positively to improve my lifestyle.

IN ONE WORD, DESCRIBE YOURSELF. Honest.

IF YOU COULD GO BACK AND GIVE YOUR 21-YEAR OLD SELF A VALUABLE PIECE OF ADVICE, WHAT WOULD YOU SAY?

WHAT IS YOUR LEADERSHIP PHILOSOPHY? I believe that leadership is a natural behaviour that a good leader is driven by. My leadership philosophy is to consistently act and lead based on my values and in the best interest of the community. I belief that I have the courage, confidence and commitment to connect with others and inspire them to achieve high performance and results through teamwork.

TODAY, OMAN'S ISLAMIC BANKING INDUSTRY IS BEING REFERRED AS AN EXAMPLE IN THE REGION FOR ITS GROWTH WITHIN A SHORT SPAN OF TIME. I AM VERY CONFIDENT THAT ISLAMIC BANKING IN OMAN WOULD BE A SUCCESS STORY AND WILL HAVE A BRIGHT FUTURE INSHALLAH.

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WHAT DRIVES YOU IN YOUR PROFESSIONAL LIFE? I am always driven by my commitments and the passion to make positive enhancements and changes in my professional life. This in turn, supports the achievement of my objectives in the best manner.

IF YOU COULD MEET A FAMOUS PERSON/LEADER/CELEBRITY, WHO WOULD HE BE AND WHY? The person would have to be His Majesty Sultan Qaboos Bin Said, the Sultan of Oman. His Majesty has a clear vision of developing Oman, and he managed to do it within a very short period; ensuring that Oman maintains its identity, unique culture, traditions and heritage. His Majesty believed in the power and abilities of the Omani people.

He encouraged them to work hard to build their country, and this had also made him work harder to facilitate their education and provide them with work opportunities and equal rights.

I BELIEVE THAT LEADERSHIP IS A NATURAL BEHAVIOUR THAT A GOOD LEADER IS DRIVEN BY. MY LEADERSHIP PHILOSOPHY IS TO CONSISTENTLY ACT AND LEAD BASED ON MY VALUES AND IN THE BEST INTEREST OF THE COMMUNITY. I BELIEF THAT I HAVE THE COURAGE, CONFIDENCE AND COMMITMENT TO CONNECT WITH OTHERS AND INSPIRE THEM TO ACHIEVE HIGH PERFORMANCE AND RESULTS THROUGH TEAMWORK.

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IF YOU RETIRED TOMORROW AND WANTED TO START A DIFFERENT SECOND CAREER, WHAT WOULD YOU DO? When I retire, I would like to pursue a career as a social entrepreneur. We should always be reminded that the world is a temporary place, and that when we leave it, we should leave our footprints in the community for others to follow and benefit from. The effort could be as small as planting a tree. As for me, I would like to build my career related to social development of the society as a whole.

YOU ARE AN ALUMNUS OF THE CAMBRIDGE ISLAMIC FINANCE LEADERSHIP PROGRAMME. HOW WAS YOUR EXPERIENCE ATTENDING THE PROGRAMME? I joined the 4th Cambridge Islamic Finance Leadership Programme, which was held at the Clare College in Cambridge and I was honoured to have been selected as one of the six winners awarded for excellent performance demonstrated during the programme.

It was a very good programme as it gave all participants the opportunity to meet, share and exchange thoughts and experiences with other delegates from different countries. At the same time, as participants, we were also privileged to be able to listen to, and have the opportunity to ask various leaders from all across the globe on their experiences.

The programme was filled with engaging activities and case studies that helped us improve and enhance our leadership skills.

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I JOINED THE 4TH CAMBRIDGE ISLAMIC FINANCE LEADERSHIP PROGRAMME, WHICH WAS HELD AT THE CLARE COLLEGE IN CAMBRIDGE AND I WAS HONOURED TO HAVE BEEN SELECTED AS ONE OF THE SIX WINNERS AWARDED FOR EXCELLENT PERFORMANCE DEMONSTRATED DURING THE PROGRAMME. IT WAS A VERY GOOD PROGRAMME AS IT GAVE ALL PARTICIPANTS THE OPPORTUNITY TO MEET, SHARE AND EXCHANGE THOUGHTS AND EXPERIENCES WITH OTHER DELEGATES FROM DIFFERENT COUNTRIES.

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POINT OF VIEW

PROFILE OF A

SUCCESSFUL

ENTREPRENEUR

HASSAN WAQAR

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ENTREPRENEURSHIP IS ALL THE RAGE THESE DAYS, BUT DO YOU HAVE WHAT IT TAKES TO BE A SUCCESSFUL ENTREPRENEUR? A LOT OF THE PERSONALITY TRAITS NECESSARY TO SUCCEED IN ONE VENTURES ON HIS OR HER OWN ARE WELL KNOWN; HARD WORK, APPETITE FOR RISK, INTEGRITY, COMPETITIVENESS, GROWTH-ORIENTED MIND SET, RESOURCEFULNESS. HOWEVER, THERE ARE OTHER SUBTLE, LESS TALKED ABOUT CHARACTERISTICS THAT ARE EQUALLY IMPORTANT TO SUCCEED IN A VERY COMPETITIVE ENTREPRENEURIAL WORLD AND WE SHED SOME LIGHT ON THEM HERE.

SUCCESSFUL ENTREPRENEURS ARE FEARLESS

SUCCESSFUL ENTREPRENEURS ARE CHARISMATIC

All successful entrepreneurs are fearless. The one thing that most commonly stands between a successful entrepreneur and a person who will get kicked around all his life into becoming what others want him to be, is the fear of failure.

Entrepreneurs know that this is not an impregnable hurdle. They face it, embrace it and celebrate it.

Entrepreneurs need to be charismatic. It takes a lot of charm and drawing power to sell one’s vision to co-founders, employees, partners, investors and early customers. Entrepreneurs are not necessarily the most articulate in a public setting but they are still very good communicators and very passionate about their vision. Good ones need to learn to connect with people and infect them with that passion, energy and vision of the future.

SUCCESSFUL ENTREPRENEURS ARE PERCEPTIVE

It takes a lot of savvy, heightened awareness and good judgement to identify a viable business opportunity and figure out how it can be transformed into a high growth business model. Entrepreneurs are therefore extremely perceptive individuals who can foresee the potential in solving a problem they experienced themselves or reported by someone around them. These same insights also serve to fuel their passion and lay the foundation of a start-up. Entrepreneurs use their perceptive powers to dream and craft a vision that will guide them through the rest of their entrepreneurial journey.

SUCCESSFUL ENTREPRENEURS ARE INFORMED

After identifying a viable business opportunity, entrepreneurs need to accumulate intelligence about their venture.

Market size, customer preferences and behaviour, competitive landscape, pricing options, decision makers and key influencers in the market as well as prospective customers, potential partners, distribution options, legal and regulatory landscape, etc; all such things need to be known to succeed in this high-risk, high-rewards business.

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ENTREPRENEURS NEED TO BE CHARISMATIC. IT TAKES A LOT OF CHARM AND DRAWING POWER TO SELL ONE’S VISION TO COFOUNDERS, EMPLOYEES, PARTNERS, INVESTORS AND EARLY CUSTOMERS.

SUCCESSFUL ENTREPRENEURS ARE LEAN

I am a big fan of The Lean Startup methodology and I think all entrepreneurs need to embrace the essence of it. A lean startup is not a cheap business, but one that is more methodical and scientific about growing the organization with a keen sense of order and priorities. I have seen so many entrepreneurs start developing a product in a vacuum only to discover there never existed a market for what they have built. A lean entrepreneur, on the contrary, recognizes the value of customer discovery and validating his hypothesis about the business model very early on in the business life-cycle.

SUCCESSFUL ENTREPRENEURS ARE RESOURCEFUL

Growing a business requires resourcefulness as well. Not just to build a world-class team but also to reach out to investors, partners and customers as well.

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GROWING A BUSINESS REQUIRES RESOURCEFULNESS AS WELL. NOT JUST TO BUILD A WORLD-CLASS TEAM BUT ALSO TO REACH OUT TO INVESTORS, PARTNERS AND CUSTOMERS AS WELL. A GOOD NETWORK IS ONE OF THE MOST CRUCIAL ASSETS OF AN ENTREPRENEUR, BUT MORE IMPORTANTLY, THE ABILITY TO LEVERAGE THAT NETWORK EFFECTIVELY CAN BE THE DIFFERENCE BETWEEN A FAILED AND A SUCCESSFUL START-UP.

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A good network is one of the most crucial assets of an entrepreneur, but more importantly, the ability to leverage that network effectively can be the difference between a failed and a successful start-up. An entrepreneur will have to tap into his friends and family network to raise initial seed money for the venture. He will need to tap into the college or professional network to recruit good talent. He will need to be knowledgeable about tools and resources needed by his venture.

He will leverage his contacts to approach business partners and investors for the start up.

An entrepreneur is constantly fire-fighting and improvising and making the best out of every situation. All of this requires resourcefulness of mind, ideas, people and assets.

SUCCESSFUL ENTREPRENEURS ARE TENACIOUS

High-growth businesses require unyielding and strong-willed drivers with nerves of steel.

While they need meticulous planning, even more importantly, they need leaders who have the ability to quickly react and adapt to constant feedback from the market. Conception of a business to an IPO or exit is almost always a very long roller-coaster ride with high highs and very low lows. Good entrepreneurs have the tenacity to absorb all the shocks and shield the rest of the organization from the bumps of that journey.

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SUCCESSFUL ENTREPRENEURS ARE PATIENT

The high school I went to had a motto: Perseverance Commands Success. Almost all successful entrepreneurs I know of seem to subscribe to that mantra. Building a business is not the same as building a product. While products can be built in weeks or months using a lot of open source tools and frameworks out there, businesses are built over years, without exception. Successful entrepreneurs are not crap shooters, they are chess players and think and act long term. It’s pivotal for a good leader to be aware of the fine line behind which he must persevere and beyond which he must pivot and adapt. The only way to know where that line draws is to be in constant touch with the market and customers.

A SUCCESSFUL ENTREPRENEUR KNOWS HOW TO LOVE! HE NEEDS TO CARE FOR HIS COMPANY, HIS EMPLOYEES, HIS BUSINESS PARTNERS, HIS INVESTORS AND MOST IMPORTANTLY, HIS CUSTOMERS.

SUCCESSFUL ENTREPRENEURS ARE CARING

A successful entrepreneur knows how to love!

He needs to care for his company, his employees, his business partners, his investors and most importantly, his customers. The hallmark of all successful, long running, profitable businesses has been customer service and the loyalty that accompanies happy customers. Successful businesses shoot for 25-40% of their revenue to come from repeat customers. Companies, like Zappos, best known for their customer loyalty attract more than 75% of their business from repeat customers. Their tag line? Powered by Service.

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HASSAN WAQAR IS THE CHIEF EXECUTIVE OFFICER OF MONEEMINT. HE WAS RECENTLY RECOGNISED AS ONE OF THE TOP 500 GLOBAL LEADERS OF THE ISLAMIC ECONOMY 2018.

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FEELING

FRUSTRATED ISN’T ALL BAD, IT’S A SIGN OF

GROWTH

Y

ou’ve worked at the same company for over a decade but the boss doesn’t even acknowledge your presence? You’ve submitted one job application after another but the market doesn’t seem to be interested in what you can offer?

You’ve been trying so hard to start your own business but there is too much to do and you have no clue where to begin?

These are just examples of painful situations that you have faced or may face in life. When you feel angry, disappointed or annoyed at anyone or anything, tension builds inside of you, and you find yourself feeling down and dispirited. In short, you feel completely frustrated.

Work is frustrating. Life is frustrating. Especially when we have high expectations for ourselves, our business and those around us. But feeling this way is just the start - the real danger is in what comes next. There are three usual outcomes from feeling frustrated - anger, sadness and apathy.

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But before being overwhelmed by the feeling, first of all, you need to stay perfectly calm and accept the fact that frustrations are common. Whether you’re a successful entrepreneur, a big boss or an employee; frustrations can occur at any time and place, to just about anybody.

Rather than feeling depressed or even sorry for yourself, you need to take charge of the situation. You need to deal with the frustrations in the best possible manner. That way, you’re able to manage the disappointments that come your way.

SUCCESSFUL LEADERS TRANSFORM FRUSTRATIONS INTO OPPORTUNITIES

Sir Richard Branson, self-made billionaire and founder of Virgin Group, is notorious for his unique and unconventional methods in everything that he pursues. He is well known for saying: “Finding something frustrating and seeing an opportunity to make it better is what entrepreneurship is all about.” Such a simple, yet radically profound statement with a lot of truth in it.

Most of the great innovations were simply the direct result of being frustrated. For example, Uber was born out of frustration of two Silicon Valley entrepreneurs (Travis Kalanick and Garrett Camp) trying to get a taxi in Paris in the midst of bad weather. Another case in point is TransferWise. Frustrated with the excessive hidden bank fees for cross-border money transfers, Kristo Käärmann and Taavet Hinrikus, the founders of TransferWise felt that there has to be an easier and cheaper way to send money abroad. This was the primary motivation that inspired them to launch TransferWise in 2011. In all these cases, overwhelming frustration was the driving force behind their innovative ideas.

MANAGING FRUSTRATION

How do you deal with frustrations? When it comes to managing your frustrations, it’s absolutely critical that you stay positive and proactive throughout this process.

Don’t fall into the trap of feeling sorry for yourself as it will prevent you from seeing things clearly and making the most use of your time and resources. Start by taking a deep breath, recite a prayer, and keep a clear mind. By doing so, you’ll be able to lift up half the burden off your shoulders, and become more focused to deal with the subject matter in hand.

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At this stage it is crucial to avoid any negative thoughts. Look at the bright side of things. A challenge has now come your way, and you need to stay motivated in order to come out with possible solutions towards ensuring a desirable outcome. This you need to do without placing too much mental load upon yourself. You’ll need to constantly assess whether the solution is actually working or in fact placing more burden on you. If it is the latter, don’t remain in the same spot. Move on and away from the negative energy surrounding you and start thinking of other solutions.

FINDING SOMETHING FRUSTRATING AND SEEING AN OPPORTUNITY TO MAKE IT BETTER IS WHAT ENTREPRENEURSHIP IS ALL ABOUT.

In the process of doing so, you can also reach out to people whom you think are able to provide you with some ideas. But you should not transfer any burden to them or ‘force’ them to resolve your frustrations for you, because if you do so, and if the outcome is subsequently undesirable, then the feeling of frustration will elevate unnecessarily. Remember, too much ‘noise’ is also bad for you. It will make you feel vulnerable and lose your focus on the more important things. The challenge is for you to deal with what has been frustrating you in the first place.

HOW TO HANDLE FRUSTRATIONS

It’s remarkably easy to feel frustrated. Things aren’t always so smooth and easy flowing. At times clouds get darker, and storms head your way, but the air always feels fresh and crisp after a downpour. What does this teach us? Deal with the stormy frustrations in your life – whether in a personal or professional context – and share your inspiring stories with others.

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ISFIRE SPOKE TO A FEW INDUSTRY PROFESSIONALS ON HOW THEY DEALT WITH FRUSTRATIONS AND FAILURE TO MOVE TOWARD SUCCESS. THIS IS WHAT THEY HAD TO SAY…

TAMER K ISMAIL Deputy Head of Compliance, National Bank of Greece

Frustration is a common emotional response to the feeling of being upset or annoyed and disappointment because you are unable to change or achieve what you want. “Goals and Dreams as example”.

There’s one thing you should know that most of us went through a point of frustration even famous celebrities, but as a matter of fact they didn’t give up on their dreams, so how can you learn from them and from the experience of others in general.

Life’s not about expecting, hoping & wishing, it’s about doing, being & becoming. It’s about the choices you’ve just made and the ones you’re about to make. It’s about the things you choose to say today. It’s about what you’re going to do after you finish reading this.

You have brains in your head. You have feet in your shoes. You can steer yourself any direction you choose. You’re on your own who’ll decide where to go... Nobody, has any idea how difficult it is to walk in your shoes.

When you feel frustrated you have to focus on yourself. You need to re-evaluate and focus your attention on being happy with what you already have. Focus on what you want to happen and manage your expectations. Set short, medium and long term goals and start on the nearest objective for one of your dearest goals. Coping with frustration is all about recognizing the sources that trigger the feeling and using the proper techniques to choose a different emotional response. Even the strongest person has a breaking point, so the best to be done is to help yourself first by not giving up. Only goodness backed by power and strength can accomplish anything. Basically, the soul is the ultimate g-spot for happiness.

You only get one soul, so please be good to yours. Take it for long walks in nature. Listen to music. Do things which you’re passionate about. Spend time with people you love, who also love you. Happiness comes from within. It is very common in these days a lot of people in their search for happiness, search for it not within themselves but in other people and in material things. Many of them assume that things such as a good job, more money, better relationships and others will give them the happiness that they are searching for, but in reality if we want to live a happy life, you need to work on your happiness every day.

Every day, you should take account of the things that make you happy and enjoy them. Put yourself first always, celebrate the small victories, get out and live life to the fullest. You need to keep in your mind that you can be in charge of your thoughts even if sometimes you can find it difficult and that a Positive thinking can help you to create your happiness.

Your thoughts are a consequence of your reactions to various events that can happen in your life. It’s how you react to problems, that create your state of mind, therefore you need to have a good attitude in life keeping in mind that the problems you are facing now is like sea waves sometimes times are quiet and the others are high, don’t swim opposite to it as you may sink you just sometimes need to bend until it pass.

A famous quote saying… “Life is like a roller coaster. It has its ups and downs. But it’s your choice to scream or enjoy the ride.”

Never forget, it’s your choice to “scream or enjoy the ride.” So get those HANDS IN THE AIR, SMILE, and ENJOY THE RIDE and don’t surrender to frustrations.

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PERSPECTIVES ABDULLAH HARON Senior Financial Expert, International Monetary Fund

In any argument, it is not about being right but all about winning. The impossibility of getting others to understand my point of view, or, at the very least, to listen sometimes become frustrated and angry. One solution is to simply not argue. Just because I presented the absolute facts about a situation and was right about it, does not mean I can get the message across. The argument just goes around and around with no one winning, except that, if I lose the argument, I will probably go away feeling angry and, maybe, stupid. So, I just let it go as it’s not worth the stress.

KHALID AWANG Founder, ProfitsPortfolio

We all have our fair share of being in situations that are sometimes beyond our control. Seated in a plane next to someone who obliviously occupied our space for example, or caught in a traffic jam on the way to our important appointment, or found our white linen washed together with the coloured laundry... often left us feeling frustrated. It is only human to be emotionally affected by life’s episodes, and acknowledging that will help us deal with our emotions more effectively. So, whether we sing a lively tune after taking several deep breaths or work it off at the gym or just have a cup of chamomile tea, we have actually taken back control which we could have otherwise lost.

MOHAMAD NASIR Executive Leader Consultant & Coach, Aspire Business

During our daily interactions, we face daunting situations in our financial, employment and personal endeavours. With these difficulties, we face frustrations that may lead us to quit, stop producing, or worst of all become a source of negative emotions towards our associates and loved ones. A Narration by Abu Huraira: A man said to the Prophet peace be upon him, “Advise me! “The Prophet said, “Do not become angry and furious.” The man asked (the same) again and again, and the Prophet said in each case, “Do not become angry and furious.”

What can we do to control our frustration? We should always keep in mind the situation, the cause of the frustration in perspective. Sometimes, our frustrations are noticeable immediately and at times we build the frustration inside of us and the negativity hurts those around us and our loved ones.

After we attempt to keep our emotions in perspective, we should seek out a friend or colleague who is a neutral party from the situation and seek his or her advice and perspective. And finally, we should focus on improving the situation. If the frustration is from our boss, then you should seek a meeting with the intention of going over the issues you are facing in hope of resolving them.

At no time should you lose the ability to communicate and articulate your feelings with honesty and respect, with the ultimate goal of improving the relationship. Controlling our emotions often involves training and pre-planning. Just like a great athlete, train and plan ahead.

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TAYYABA N. AHSAN Head of Strategic Alliances, Finocracy

Frustration comes easily - be it in personal or professional life. For many, frustration often results from undesirable outcomes, which tends to have a discouraging effect that magnifies people’s weaknesses in themselves. For me, it is simply the confidence that I lose in myself by choice. Once caught in its whirl, it is difficult to break through. So stop right there. Rather than getting caught in small obstacles, focus on the bigger picture, your vision and the goals that you ultimately aim to achieve. Take it from there, build up on your strengths. Understand what triggers you instead of reacting. Work on your ability to manage a failure just like you do your success.

DRS DAAN ELFFERS Cambridge IFLP Alumni and Keynote Speaker and Mentor, STARTUP Saudi Arabia 2018

No matter how hard we work and how well we prepare, there will always be some things we cannot control. What we can control, however, is our attitude towards a situation and our reactions to it.

Everything depends on our perspective. The much more interesting question to ask is whether there is some hidden value to be derived from what we are faced with and whether we can effectively respond to it. All great business ideas start with the challenge of creating value and discovering that things can be done in a better way may well inspire greater innovation!

RAHEEL IQBAL Managing Director, HIRC International Ltd

Dealing with frustration is an art form. It requires years of skill and finesse. Dealing with frustration is the equivalent of working with fire. No matter how adept you are, you always maintain the risk of getting burned if you are not too careful of it. The best way I have dealt with frustration is to accept the fact that sometimes not everything is in my control and that all things take time. Let yourself control your frustration and not the other way around. Take up a hobby or anything that occupies your mind that brings joy.

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OMAR MANSUR Chief Strategy Officer, Ground One Ventures

Frustration is a part of life. It allows you to test your abilities and how much you can handle. Sometimes it gets too much and if not harnessed properly can lead to a disaster. The best way I deal with it is I try not to let it affect me and think of it as a crosswalk waiting for the light to turn green. I occupy myself with things I enjoy, daydream a bit until I feel I am ready to tackle the problem. All within good time of course.

IRMA HASHIM Relationship Manager, Government Link Companies (GLC) Unit, Bank Islam Brunei Darussalam Berhad

When I look back, most times my frustration are when things did not go as planned or expected. This all goes about managing my expectation. On this note, I always remind myself to have an open mind, anticipate the unexpected and don’t be quick to judge when things doesn’t go my way. What I also learned along the years and picked-up from the people around me, is to always self-reflect (muhasabah diri) on the root of cause of these frustrations. Does it come from something that we are in power to change/control or whether the root cause is just beyond our control? It’s easier when you have the power to change and overcome the frustration (even though at times it involves lowering one’s ego, when we are at fault). However, when the root cause is beyond our control, try to remember to recite the powerful dua shared by Prophet Muhammad (PBUH), “In the name of Allah, with whose name nothing on earth or in heaven can cause harms and He is the All Hearing the All-Knowing” [Abu Dawud and At-Tirmidhi]. Bi Khair (All will be good), In Sya Allah. With that, sit back, think positive (Husnuzon) and together we watch the world goes by.

SHARMEEN SULEMAN Family Travel, Marketing & Consultancy

We all have frustrations, whether it’s not having enough hours in the day or having to work with colleagues for whom “integrity” holds no meaning. I personally deal with these frustrations by putting them into perspective first. By asking myself a simple question, “Why is this frustrating me so much?” Take for example, time. We can’t find time nor can we make it. It’s impossible. However, we can make small changes in our lives to maximise the utilisation of our time. How? Downloading a report to read later, whilst waiting for a meeting or to collect our children from school. Squeezing in an online course over a cup of coffee. Turning off notifications from our social media & setting a dedicated time to review during the day. In short, I deal with my frustrations by finding solutions for them.

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LEADING IDEAS

HOW

ISLAMIC FINANCE CAN HELP THE

GOVERNMENT OF

PAKISTAN

SOLVE ITS WATER AND

ELECTRICITY CRISIS:

A PROPOSED MODEL OF WAQF-SUKUK EHSANULLAH AGHA

I

t is alarming to know that Pakistan will reach absolute water scarcity by 2025, and on its way to become the most water-stressed country in the region by 2040 according to United Nations Development Programme (UNDP) and the Pakistan Council of Research in Water Resources (PCRWR). Presently, major cities such as Karachi, Quetta and other urban areas are facing massive water scarcity. Unfortunately, the country dumps water worth US$22 billion into the sea every year due to mainly the lack of storage capacity and poor conservation practices. This has also resulted in low and costly production of electricity in the country.

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To address the above issues, the Supreme Court (SC) of Pakistan recently taken a suo motu notice of the blooming crisis. The SC issued directives for the immediate construction of two dams and appealed to the people, including Pakistanis living overseas, to make necessary contributions. In the wake of the apex court order, the government has decided to establish the Diamer Bhasha and Mohmand dams fund to raise financing for the construction of these two critical reservoirs in a bid to fight impending water scarcity and electricity shortage.

However, despite the urgent need and tacit pressure from the government, it seems that the public is reluctant to contribute evident by the slow donation rate. As at 22 July, 2018; the total amount deposited was about PKR280 million (US$2.2 million), whilst the expected cost of Diamer Bhasha dam alone is about PKR1.450 trillion (US$11 billion). Although the total cost is not required at the inception stage, however, one-year cost is estimated to be valued at PKR23.68 billion as per the Public-Sector Development Programme (PSDP).

At PKR18 million (US$0.15 million) per day ratio, it will take 1315.55 days (3.5 years) to reach the target of PKR23.68 billion (US$194 million). This means even next year’s PSDP allocation (for the dam part alone) will not be possible to meet the amount.

The lack of public interest and slow donation is probably due to the absence of an effective policy framework. For example, who will supervise the whole project? Is it SC, WAPDA (The Water and Power Development Authority) or Ministry of Finance? How the funds will be distributed? People are concerned to find answers to these questions so as to prevent similar mishaps in donations to be repeated. For example, similar projects announcements in the past by the government such as the Musharraf President Relief Fund after the 2005 earthquake, Nawaz Sharif ‘qarz utaro, mulk sanwaro’ scheme (1990s), and a similar scheme by Zulfikar Ali Bhutto; had all ended up with massive corruption and misconduct of the funds.

Due to the above setbacks, there is a need to explore a viable source of funding that is cost effective on one hand and ensures public interest and participation on the other hand. One possible approach could be an Islamic financing mechanism known as “waqf sukuk”. Waqf is an Islamic endowment of valuable asset to be held in trust and used for a charitable purpose.

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Sukuk refers to Islamic bonds, structured to generate returns to the certificate holders without infringing Islamic law. In the case of raising fund for the said dams, waqf sukuk simply means establishing an Islamic endowment through issuance of financial certificates that will represent donations of the individuals and corporate entities in that charitable fund.

IT IS NOTEWORTHY TO HIGHLIGHT THAT PAKISTAN IS THE SECOND LARGEST MUSLIM COUNTRY (212 MILLION POPULATIONS) IN THE WORLD WHERE ABOUT 95-98% OF THE POPULATION IS MUSLIM.

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WHY RAISE FINANCE?

FUNDS

THROUGH

ISLAMIC

It is noteworthy to highlight that Pakistan is the second largest Muslim country (212 million populations) in the world where about 95-98% of the population is Muslim. Therefore, the growing demand of Islamic finance in the country is not surprising. In 2014, the State Bank of Pakistan (SBP) has conducted a survey to investigate the public perception about Islamic finance. The study has quantified an o verwhelming demand of Shari’a-compliant financing activities in the country that is evenly distributed amongst rural and urban areas, varied income strata and education level. According to the study, 95% of the retail and 73% of the corporate sector prefers Islamic finance over conventional one.

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It implies that majority of the population will participate in a fund-raising initiative for a national cause provided that it complies with the rules and principles of Islam.

WHY WAQF-BASED SUKUK?

Sukuk is widely acknowledged as the poster child of the Islamic finance industry. Its universal appeal for all types of corporate issuers, the strong captive demand base from Islamic financial institutions and high-profile issuances of non-Muslim sovereigns have catapulted sukuk into the realm of international financial market.

Indeed, sukuk has become a significant tool deployed by governments and corporations globally for (1) financing their needs and (2) diversifying their funding pool in order to support economic and infrastructure development, particularly in Islamic countries where economic activity is sensitive to religious values.

Principally, sukuk serves as an alternative to conventional bonds for both Muslim and non-Mulim investors. It is structured to generate returns for investors without infringing Islamic law.

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LEADING IDEAS

It offers depositors a stake in the actual investments instead. As such, they are very attractive to a broad range of investors, especially individuals and institutions with a strict mandate to invest in Shari’a-compliant instruments. It also provides greater liquidity in terms of redemption as compared to its conventional equivalents. Another critical factor favoring sukuk is that as securities, they are anchored in actual assets—ownership in particular projects, properties or special investments, while bonds are more or less mere debt instruments. Recently, sukuk has become the preferred investment choice because of the profit rates offers.

It can offer on average a return of five per cent per annum, while fixed deposits for the same period and currency (usually US dollar) pay 1.75 per cent per annum at best.

Pakistan is among the fastest-growing countries in sukuk issuance. In 2016, according to Securities & Exchange Commission of Pakistan (SECP), the total fund raised by sovereign and corporate entities in the country through sukuk was PKR0.87 trillion. This shows that there is a huge untapped potential to finance the dam’s construction through the issuance of sukuk.

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LEADING IDEAS Enhance the efficiency of the Non-Profit Sector

An interesting element in this proposal is the combination of waqf and sukuk. Even though Islam does not tolerate negligence of the state in providing necessities and preserving the welfare of its citizens, it offers a voluntary option for the public to support state’s responsibilities through the institution of waqf. Indeed, this institution has played a crucial role in enhancing socio-economic activities throughout Muslim civilization. Due to its flexible nature, it inherits a tremendous capability to answer to modern era economic challenges. Waqf-sukuk is considered for a number of reasons as a perfect sustainable financing instrument offered by Islam to finance state’s projects by the people and for the people.

Viable Communica on Pla orm between Profit and Non-Profit Sectors

WAQF SUKUK

High Degree of Transparency via Awqaf Sukuk Instrument

The revenue will be used for charitable and social purposes all over the world. More recently, Indonesia has also decided to issue waqf-sukuk for developing social properties.

It is noteworthy to point out that the sukuk proposed here is different from Sustainable and Responsible Investment (SRI) sukuk, since only sovereign entities and governments typically underwrite SRI sukuk, usually with private placement. On the other hand, the waqfsukuk will be issued through a public placement.

In this type of structure, sukuk owners are not motivated by financial returns. Instead, they are focused on the delivery of sustainable social outcomes and philanthropic objectives over the long run. The following chart depicts benefits of waqf-sukuk:

6

SUPREME COURT AS TRUSTEE SPV 2

DAM CONSTRUCTION

5

3

ESTABLISHMENT OF CASH WAQF BY MINISTRY OF FINANCE

SUKUK HOLDER

1

ELECTRICITY PRODUCTION

GOVERNMENT OF PAKISTAN AS GUARANTOR

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LEADING IDEAS

OF

THE

PROPOSED

Assuming the first priority is to raise fund for Diamer-Bhasha dam that will approximately cost around PKR1.450 trillion (US$11 billion).

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Another important reason of choosing waqf model is that unlike other Shari’a-compliant financing modes, waqf fund by itself acts as an independent legal entity which will remain functional perpetually. In other words, waqf by nature is inalienable. Hence, it cannot be owned by anyone rather it will remain beneficial.

Once the defined objectives are achieved, waqf proceeds would be utilized for other social causes.

MODUS OPERANDI WAQF-SUKUK

4

7

Provide Secured Infrastructure to Globalize the Awqaf Industry

Source: Awqaf NZ

Structure of the Proposed Waqf-Sukuk for Diamer-Bhasha Dam

5

Development of a Safe Structure for the Profitable Sector to Invest in the Non-Profitable Sector

Promote Innova on through Engineering of the Awqaf Industry

However, these types of sukuk were solely meant for investment purposes, without a socially favorable outcome. The closest example of the proposed waqf-sukuk was the launch a social project in New Zealand based on waqfsukuk by the International Shari’a Research Academy for Islamic Finance (ISRA) in 2017. The goal was to issue the world’s first waqf-sukuk worth of US$1 billion to establish farming industry in New Zealand and Canada. Via these farms, Qurbani (slaughtering animals) will be provided for Muslims particularly in the west. The waste of the animals and skins will be used to produce shoes and bags etc.

6

Revive and Apply the Sunnah of Qard al-Hassan

Balancing the Islamic Economy

Several waqf sukuk has been issued successfully in recent years, such as the sukuk intifa (US$390 million) to construct ZamZam Tower in Mecca and the musharaka sukuk (US$60 million) issued by MUIS (Islamic Religious Council of Singapore) in Singapore.

BUSINESS INVESTMENT

Development of New Islamic Finance Tools for the Non-Profit Sector

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LEADING IDEAS

Since the total fund is not required at the beginning, the required fund will be raised gradually in three tranches of waqf-sukuk each for PKR0.47 trillion (US$3.6 billion). The following diagram explains structure of the proposed waqfsukuk:

• The Ministry of Finance (MoF) establishes cash waqf fund, which will act as an independent entity.

• To ensure public’s confidence and participant’s interest, the Supreme Court of Pakistan will act as trustee of the waqf scheme.

• Special purpose vehicle (SPV) will be created to deal on behalf of the sukuk holders, and waqf will issue sukuk to the participants through SPV. Sukuk holder (donors/investors) could be divided into four categories: (a) perpetual investor with zero return i.e. pure waqf contributors, (b) perpetual investors with certain return (c) contemporary investors with zero return i.e. creditor to the waqf, (d) investors aiming commercial gain i.e. getting back principal investment and profit.

• The Government of Pakistan will act as a third-party guarantor for sukuk holder.

• Since total sukuk proceeds will not be utilized at the inception, it will be divided into two parts: (1) a portion will be invested in Shari’a-compliant business to generate profit, while (2) the remaining will be channeled for dam construction.

• The profit earned through investment will be channeled to (1) waqf fund and (2) those sukuk holders who invested for commercial gain (to entertain them during the grace period).

• Once the dam is fully constructed, electricity production will start. Profit from the electricity unit’s sale will be channeled to (1) waqf fund and (2) those sukuk holders who invested for commercial gain.

Redemption of the sukuk will take place in two cases: (a) contemporary investors with zero return i.e. creditors to the waqf aim to get back their principal(2) investors intended commercial gain. In both cases, they can redeem sukuk in secondary market.

CONCLUSION

The proposed waqf-sukuk will generate various benefits to the country. For example, it will support the public financing of the government and will enhance the efficiency of the non-profit sector by reviving the Sunnah of donation, qard al-hassan and waqf. Furthermore, a successful issuance will ensure to (1) set a standard for low cost fund raising (2) provide a secured infrastructure to globalize the awqaf industry (3) attract investment from other waqf institutions specially from the Middle East and (4) entice religion-oriented donors. In addition, a robust governance framework under the supervision of the Supreme Court of Pakistan will address the most critical aspect of this project i.e. public interest and welfare assurance to save the project from massive corruption and misconduct. The construction of proposed dam will also produce electricity to reduce the current shortage.

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MR AGHA IS A PH.D SCHOLAR OF ISLAMIC FINANCE AT INTERNATIONAL ISLAMIC UNIVERSITY MALAYSIA (IIUM) AND HE IS CURRENTLY ASSOCIATED WITH HABIB METRO BANK—SIRAT PAKISTAN.

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TALKING POINTS

WEALTH

THROUGH

SELF-CONTENTMENT

AND PRACTICAL

WAYS TO ATTAIN IT KHALFAN ABDALLAH

A

bu Hurayra reported that the Prophet, may Allah bless him and grant him peace, said, “Wealth does not mean having a lot of property. Wealth means having self-contentment.” (Sound Hadith). Perhaps this quoted statement that wealth means having self-contentment may sound authentic to some and controversial to others. The controversy arises from the fact that existing knowledge or wider understanding of people on wealth has rarely described wealth as such. However, there is an increasing acceptance that wealth is not about money or a lot of properties but it is about the welfare of an individual at a given time.

One such component of human welfare that is so valuable is selfcontentment. So what is self-contentment? In my view, self-contentment is a state of mind and heart of a person who make ‘rightful’ use of his endowed abilities or competencies to his level best and each time he gets the outcome, he feels happy, be it a positive or negative outcome. Briefly, it is a state of being happy with yourself for what you have rightfully done. It is a state whereby having much or little does not have any impact to your level of joy.

Self-contentment is unlike other valuables in human life, it has no price or quantifiable value for exchange. As such it can be granted to anyone with the right set of understanding, but not to any kind of understanding. This article aims to share with you what you must know and practice in order to attain ‘ghina nafsi’ (self-contentment).

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ABU HURAYRA REPORTED THAT THE PROPHET, MAY ALLAH BLESS HIM AND GRANT HIM PEACE, SAID, “WEALTH DOES NOT MEAN HAVING A LOT OF PROPERTY. WEALTH MEANS HAVING SELF-CONTENTMENT.” (SOUND HADITH).

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HERE ARE THE NINE POINTS: Follow the lifestyle of the noblest being, Prophet Muhammad, may peace be upon him.

He never used to fill his belly, but go hungry for some days while spending little he has with his family and feeding the poor around him.

He worked hard to earn his living but he never bothered to enjoy himself with his family but with the destitute in his surroundings.

He choose to be normal person at the same time Prophet of God rather than a King and prophet of God! One of his companion, Abu Dhar Al Ghaffari said to inform people “treat the world as a place/station for two thing; one, a place for seeking your permissible provision (rizkul halal) and second, for seeking rewards of hereafter (thawabal al akhira); a third goal will do more harm than benefit you, so leave it.... treat your money as if it is two coins; one spend it for providing your family and second, spend it for seeking rewards of hereafter; a third spending will do harm than benefit, so leave it.”

2 3

“World is place of trials” attitude. The prophet peace be upon him said “The highly tested people are messengers, then the righteous and the like of them” The heart should prepare patience for what you dislike and prepare gratitude for what you like, surely good and bad, are life experience tests! The good of the trials is that the Prophet peace be upon him said ‘A Muslim, male or female, continues to remain under trial in respect of his life, property and offspring until he faces Allah, the Exalted, with no sin record’. No sin!

Make your life goal and work is for seeking rewards of hereafter. The prophet peace be upon him said; “ Whoever makes the Hereafter his goal, Allah makes his heart rich, and organizes his affairs, and the world comes to him whether it wants to or not. And whoever makes the world his goal, Allah puts his poverty right before his eyes, and disorganizes his affairs, and the world does not come to him, except what has been decreed for him.” (Sound Hadith).

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TALKING POINTS

4 5 6

Total reliance to Almighty, the owner of everything. Allah said “...He who rely from Allah, he will suffice him..” In as much as you make an effort, your heart is totally relying from the owner of heaven and earth. One wise, used to say: I have seen people who rely on their trade, health, offspring, education... I chose to rely on Him, the originator of all. Another saying of pious is “I knew my provision won’t be eaten by anyone else, my heart got peace with this understanding. I knew my work won’t be done by others, I decided to do it myself. I knew that I am not hidden from the sight of almighty, thus I feel shy before Him.”

“All affairs are in the control of Allah” attitude.

Prophet peace be upon him told Ibn Abbass “Know that which did not befall you, it was not meant by Allah to occur to you. And that which happen to you, it was meant by Allah to occur to you...” The belief in destiny is crucial since Allah planned for everything that occurred, occurs and that shall occur. Allah plans is better than ours. Plan and execute and more importantly accept the results with joy, whatever they may be!

“World is transient station, hereafter is the destination” attitude. Almighty describe to us that world has been made to seem fair in the eyes of disbelievers, they seek pleasures or enjoy lawfully and unlawfully and have nothing they expect but pleasant life of the world. A believer mindset is that the world is work station, to do good in order to reap well and reach safely at the destination. For sure, disbelievers enjoy for a second but shall suffer pain for unlimited period...Is he who is promised Gardens in the hereafter and works for it, like the one made to enjoy life in the world then he suffers pain in hellfire on the judgement day?

“All on earth shall perish, only He shall remain.”

“Give your back pleasures of the world (Zuhd), Allah will love you. Leave what in the hands of people, they will love you!”

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TALKING POINTS

7

Look at those with little possessions than yours and abstain from looking those with extra means than you. We all have some valuables. Be materials or a state of welfare such as health! The more you look those with what you don’t have, your heart likely to demand such items and you will think lowly about yourself or think what you have is of no significance. Look at those below you in worldly possessions, you will see how plentiful you are. However, keep looking for those who are ahead of your in righteous deeds and strive to super pass them.

8

Make Duah (Supplication). I just came across a book title on “Duas for the contentment of the heart”, very strong title. Get it. As supplication is the secret weapon of a believer. Pray to Almighty to grant you contentment, for he who has it knows the true meaning of happiness.

9

Keep hunger as part of your life. Though the prophet had experienced hunger several times in his life due to various reasons beyond his control, no doubt filling the stomach every day is not noble. Fasting of Ramadhan should remind us the trial of hunger and exert efforts to eradicate hunger. However, it is noble for some days to go without eating even if you can afford to eat through fasting. Yusuf peace be upon him used to fast several times. His people asked him why he does that while the treasure of food in Misr is under his watch. He said: I fear to eat and forget the hungry. Hunger remove the taste of worldly life while constant fill of stomach kill the spiritual health of the heart. A Prophet peace be upon him said;’The human does not fill any container that is worse than his stomach. It is sufficient for the son of Adam to eat what will support his back. If this is not possible, then a third for food, a third for drink, and third for his breath.” “Glad tiding to someone guided to follow Islam, provided with minimum he requires to live with and he is contented.”

It may sound very difficult points to act on. You are right! Isn’t that the price of being wealthy through selfcontentment? They say there is no free lunch, I say there is no free wealth! Practice above points, you become one!

All the best.

For more on this topic, read a book called “Kayfa Tuhakik Ghina nafsi, was’atul rizk” by Saeed Abdul ‘Adhwim.

KHALFAN ABDALLAH IS MANAGER (HEAD), PRODUCT DEVELOPMENT AND SHARIA COMPLIANCE AT GULF AFRICAN BANK.

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2018 THE LEADING ISLAMIC FINANCE PUBLICATION SINCE 2010

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CONTENTS: • Overview of the Global Islamic Financial Services Industry • Islamic Finance Country Index – IFCI 2018 • Islamic Finance in a Global Economic Context • State of the Global Halal Industry: Trends & Growth Opportunities • Waqf: An Important Islamic Socio Economic Institution • Role of Waqf in Socio & Economic Development • Humanitarian & Development Finance Through Islamic Philanthropy: The Role of Zakat • The Rise of Islamic Fintech • Responding to a World in Need: How the Islamic Economy can Contribute to Humanitarian Aid • The Future Drivers of Islamic Finance • The Role of Islamic Microfinance in Social & Economic Development

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ISFIRE REVIEW

ISLAMIC SOCIAL FINANCE

A SUSTAINABLE MEANS OF

ALLEVIATING POVERTY

AKEEM KOLAWOLE ODEDUNTAN

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ISFIRE REVIEW The goals of Islamic finance can be perceived right from the terms it rests upon. While the term finance suggests that Islamic finance addresses economic issues such as resource allocation and management as well as acquisitions and investments; the term Islamic implies there are certain unique factors imbedded in it that create divergence from the existing or subsisting whether in its principle, operation or outlook. These factors are evidently drawn from the provisions of the Shari’a. Thus, Islamic finance is an ethical financial system that promotes healthy relationship among all stakeholders and takes into cognizance the concept of mutual risk and profit sharing.

Transactions in this kind of financial structure are based on particular business activities and real assets.

Meanwhile, the main goal of Islamic finance is often captured in one general term of Maqasid al-Shari’a (the real essence of Shari’a). This terminology may be described simply as the objectives of Shari’a. It facilitates improvement and perfection of the conditions of wellbeing of individual in the society. Islamic finance introduces an economic system that is built on social justice and has positive impacts on the total welfare of the masses. Its non-negotiable and vehement prohibitions on financial transactions that are based on interest, gambling, speculation, fraud, bribery, corruption, and the likes align with Maqasid al-Shari’a.

THE NEED FOR SOCIAL FINANCE

finance system is therefore set out to promote the general wellbeing of people as well as to enhance public and social benefits (Maslaha) which happens to be one of the manifestations of the Maqasid al Shari’a. It therefore provides fundamental and substantive change to some of these lingering problems.

Hitherto, the traditional financial system has not been able to resolve some of the socio-economic problems ravaging the world economy. High rate of poverty, injustice, deprivation, ecological destruction and many others are manifestations of the multifaceted crisis enveloping the world. The situation is so deplorable that people can no longer meet their basic needs vis-a-vis food, clothing and shelter let alone other important needs such as health care and sanitation, safe water supply and so on.

Consequently, the emergence of Islamic economics and finance especially its phenomenal growth and success, at least in the last three decades, is considered not only as an alternative to the conventional system but also as a remedy to the world’s economic and financial crises. Being a divinely motivated system, Islamic social

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MANY INSTRUMENTS IN ISLAMIC FINANCE AS MENTIONED ABOVE ARE TOOLS TOWARDS ERADICATING POVERTY AND ENHANCING WELFARISM IN THE SOCIETY

At this juncture, it must be emphasized that Islam values prosperity and particularly urges its adherents to aspire and work for bounties in this world while seeking the pleasure of their lord, Allah. It however establishes certain institutions charged with the aims of redistributing income and circulating wealth among people through charitable courses in the form of zakat and sadaqah.

Besides there are other potent palliative measures that can be employed to eliminate poverty and bring about a just society, which are waqf and qard ul hasan.

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ISFIRE REVIEW Meanwhile, we must realize that poverty does not exist in isolation. It has been found to have direct impacts on many aspects of our socio-economic lives such as education; health; labour market; agriculture, livestock and food security and many others. Many instruments in Islamic finance as mentioned above are tools towards eradicating poverty and enhancing welfarism in the society. Giving the principles of fairness, justice and equity that characterize Islamic finance, it is unambiguous that adopting its model of poverty alleviation ensures that every individual in a society is confident of a minimum income which in the long run contributes to social security system within such society.

ZAKAT AND SADAQAH The institutions of zakat and sadaqah are among several instruments instituted in Islam to combat poverty and promote the wellbeing of people. These institutions also encourage wealth circulation and redistribution of income. Zakat is one of the cardinal principles of Islam and so it is obligatory on adult wealthy Muslims, whether male or female, whose wealth meet certain stipulated conditions. These conditions include the fact that the source of the wealth must be lawful (halal); the payer must not be a Muslim, adult, sane and must not be indebted in anyway, the amount must reach the minimum allowable rate (nisab) within the course of a year.

TAKE OUT OF THEIR WEALTH ZAKAH THAT SO THOU MIGHTIEST PURIFY AND SANCTIFY THEM”

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Sadaqah, on the other hand, is the supererogatory form of zakat and it is also enjoined on every privileged Muslim who may not necessarily be rich but are comfortable. It does not have the conditions attached to zakat other than the fact that the source of wealth must be lawful. Thus, the rich who pay their zakat do additional rewarding acts through paying sadaqah. Others who are not qualified to pay zakat (simply because their wealth do not meet the minimum amount) are encouraged to pay sadaqah; it is actually a platform for all and sundry to participate. Zakat and sadaqah have many objectives in terms of spiritual, economic and social wellbeing. The Quran explicitly describes the spiritual objective in Q9 vs 103 as a means of purifying one’s wealth:

The institution of zakah also provides a platform to help people the less-privileged members of the society either by virtue of insufficiency of wealth or inability to work as a result of one disability or the other. Therefore, the sets of individual should not be unduly subjected to abject poverty but could be assisted swiftly through the proceeds of zakat and sadaqah, thereby reducing poverty rate to the barest minimum.

Furthermore, the Quran identifies the recipients of the proceeds of zakat and by extension of sadaqah.

These are people who for one reason or the other, are under either temporary or permanent circumstances that are beyond their control and thus do not have the wherewithal to help out and comfort themselves; hence, the need to assist them. The list of categories of people that are entitled to the proceeds of zakat as enumerated in Q9:60 are: the poor; the needy; Zakat collectors; winning over hearts (i.e people whose faith are weak and new revert); slave seeking ransom; the indebted, in the cause of Allah swt (i.e the participants in the cause of establishing Islam as well as the erecting facilities/ structures such as mosque, school, hospital, Muslim cemetery, orphanage homes, etc.); and wayfarers.

The categories of people the Almighty Allah enumerated in the Quran as recipients of zakat and by extension sadaqah cut across people of different classes of needs. They represent conditions or circumstances human beings can find themselves by virtue of divine decree or individual laxity or incapability or insufficiency or whatever. The bottom-line is that at that material time they are in need and will like to meet or satisfy their needs. Their state of affairs makes the susceptible to violence as the popular saying “a hungry man is an angry man”.

“Take out of their wealth Zakah that so thou mightiest purify and sanctify them”

Since the Maqasid Shari’a is peaceful co-existence of people irrespective of their racial, religious, ethnical, and socio-economic backgrounds; zakat and sadaqah therefore play an important role in realizing this objective. Given the fact that everyone cannot equally be blessed and everyone cannot be a leader, the onus lies on the privileged ones to assist the less privileged; this is the nature of life. Therefore, to bring about desired peace in any society the principle of equity as instituted in zakat and sadaqah must be ingrained.

A brief analysis of the above verse shows that the primary essence of zakat is to purify and cleanse the payers. In other words, just as the essence of fasting in Islam is to attain Allah’s consciousness, the very essence of zakat or sadaqah is soul purification and rejuvenation.

Besides, zakat and sadaqah have been found to be helpful in purifying the human soul from the vices of stinginess, greed, covetousness, lustfulness as well as other inner germs of the spiritual diseases.

Unfortunately, the rate of social insecurity and poverty in the world is becoming alarming not because there is no more soil to till or the water from the sky has stopped endlessly. But the problem is that the wealthy or should I say the privileged have continued to impoverish the poor ones through conditional financial aids in form of loan imbued with compound interest. The economic interests of the big nations supersede whatever interests other nations of lesser socio-political status may harbour.

Meanwhile, there are many socio-economic benefits of paying zakat and sadaqah. It reduces concentration of wealth in the hands of the few, thereby enhancing circulation of wealth. It also helps the less-privileged in the society including the poor, orphans, widows who are unable to fulfil their needs not because they are handicapped or lack administrative acumen or are bereaved of ideas but because they do not have the capital or the resources to transform their ideas into realities.

Thus, today we put profit above people; greed above need; rule of gold above golden rule and the consequences of our nonchalant attitude, greed and selfish interest include prevalence of violence; insecurity and insurgency, militancy, hatred, despondency, distrust and of course poverty.

The institutions of zakat and sadaqah provide a palliative measure to the problem of social vices and poverty that is ravaging the world. For zakat, only 0.025

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ISFIRE REVIEW (or 2.5%) of one’s wealth is to be remitted annually as zakat, while for sadaqah it is as much as you can afford.

In a sophisticated environment, scholars agree that the zakat might be remitted to a zakat based institution or organization that collects and disburses zakat and sadaqah appropriately.

In some other societies, especially Muslim states, zakat and sadaqah are placed under a ministry or government parastatal who does not only oversee the payment of zakat and sadaqah but also oversees the distribution taking into cognizance the eight categories of people mentioned in the Quran. Both the zakat and sadaqah proceeds can be used to facilitate or finance the less privileged that are business-driven or artisans but lack financial wherewithal to establish themselves in their respective careers.

Besides, these proceeds can also be used for community based activities such as paying tuition fees, hospital bills and so on for the poor and their children.

Their proceeds can also be channelled towards reducing illegal sexual intimacy among young adults who are ripe for marriage. These unmarried men and ladies who are likely to constitute nuisance to the society can be helped by empowering them so that they can get married as soon as possible. We can use these proceeds to assist the debtors by offsetting their debts thereby making them free of the pang of debt.

Furthermore, we can empower the unemployed youths by organizing skill acquisition programmes for them from the proceeds of zakat and sadaqah. This makes them to be self-sufficient and even be employers of labour in their own realms. This might not only cut down the number of people that run after white collar job but also reduce unemployment in the long run and so the society becomes a better place for us all to live.

WAQF Waqf is another palliative measure Islam introduces as a social finance technique to combat poverty and promote peaceful and healthy relationship among members of a community. By a way of definition, waqf can be described from literary perspective as to hold, confine, detain, or restrain. In technical or usage form, the term waqf means protecting something, by preventing it from becoming the property of a third person. It could be described as withholding the ownership of a designated asset while releasing its usufruct. Besides, it represents property or assets dedicated in perpetuity for specific beneficiary for the purpose of achieving specific objectives. According to most scholars, waqf is often seen as Sadaqatu Jariya (continuous charity).

Waqf may be cash money, real property, land, building, agricultural machineries, livestock, shares or any movable property which can be made use of even if it is a common property. In other words, waqf does not apply to perishable commodities because their benefits and usufruct cannot be extracted; they are rather consumables. Therefore, perishable items such as food, farm produce and the likes cannot be made waqf.

A person may dedicate his property as waqf property for a specific objective while at the same time more than

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one person or a group of people can join hands together to form a waqf through cash or in-kind shares. Whatever be the case, the objective of such must be clear. Meanwhile, the waqf property is expected to be effectively managed so that it does not get reduced and adequate accountability and transparency must be ensured. The Islamic law that governs the waqf property allows the provider of such asset (waqif) or his designate to manage it.

Waqf is one good means that we can take advantage of to combat poverty that is ravaging the world. The proceeds from waqf asset could be utilized to provide small scale business opportunities for the poor or empower artisans who have the prerequiste knowledge and skill but do not have the financial ability to start-off or take care of the basic needs of the less privileged or the physically challenged if they do not fall within the category of people who are able and are willing to work. The proceeds can also be deployed to provide infrastructural facilities that every member of the community especially the poor will benefit from.

Thus, if we must take the bull by the horns in our struggle to fight poverty, we must begin to look in the direction of the opportuties available in waqf. While the government is duty bound to provide an enabling environment, the individuals and groups of individuals, the wealthy and the philantropists should employ this by parting their wealth for the overall welbeing of all and sundry. The almighty Allah has stated that in Q3vs 92 thus: “Never will you attain righteousness until you spend from that which you love ...”

NEVER WILL YOU ATTAIN RIGHTEOUSNESS UNTIL YOU SPEND FROM THAT WHICH YOU LOVE ...

QARD HASAN (BENEVOLENT LOAN) Qard hasan is yet another method that can be employed to curtail poverty to the barest minimum level and promote social wellbeing. Qard hasan is simply an interest-free loan; a beneficial loan or benevolent loan or gratuitous loan. It means lending with no interest and no profit out of merit. Therefore, it is a kind of loan contract (or debt based) that involves two parties on the basis of social welfare. The lender is fully aware that he is making a loan to someone in need without expecting anything return from him or any mortal but his intention is in order to please Allah.

This contract fulfils the short term need of a borrower.

At maturity which may be determined and agreed by both parties, the repayment must the exact amount borrowed, that is, no interest or riba is charged or applicable. One of the benefits qard hasan is that it establishes cordial relationship among the poor and the rich.

The value of qard hasan is mentioned in various portions of the Quran, one of such is that Q57vs18 that goes thus: “Indeed, the men who practise charity and the women who practise charity and (they who) have loaned Allah a goodly loan – it will be multiplied for them, and they will have a noble reward.”

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ISFIRE REVIEW Relaying his experience during Isra’ wal miraj, the Prophet (SAW) remarked: “In the night of the journey, I saw on the gate of heaven written, ‘reward for Sadaqah is ten times and reward for Qard (or an interest-free loan i.e. Qard-al-Hasana) is eighteen times’. So, I asked the angel, how is it possible?

The angel replied, ‘because the beggar who asked had already had something but a borrower did not ask for the loan unless he was in need.” – Sunan Ibn Majah.

CONCLUSION The overall interest of the Islamic social finance is the provision of finance to the poor so as to increase their income and wealth thereby making them to be less dependent on others for sustenance. Therefore, the concept and application of Islamic social finance will genuinely cater for the needs of the poor and the less privileged and of course in the long run generate socioeconomic growth of the community at large.

Since everything was given to us a gift as we do not own all of the things that keep us alive we should not hesitate to reciprocate by giving out especially things we have as excess to those who are in need of them so as to bring about peaceful co-existence. Consequently, for us to promote healthy relationship among people of different background and socio-economic status, concerted efforts should be made not only by government but also by the

INDEED, THE MEN WHO PRACTISE CHARITY AND THE WOMEN WHO PRACTISE CHARITY AND (THEY WHO) HAVE LOANED ALLAH A GOODLY LOAN – IT WILL BE MULTIPLIED FOR THEM, AND THEY WILL HAVE A NOBLE REWARD.”

privileged individuals in the society to enhance adequate framework for Islamic social finance. By so doing, poverty that has been found to be the root of all social vices and social insecurity will become a thing of the past and the world will become a better place for us to live.

Akeem Kolawole Odeduntan is Senior Associate Consultant 1 at Ahmed Zakari & Co. (Chartered Accountants), Nigeria. He may be contacted at a.odeduntan@ahmedzakari.com or kolexy01@gmail.com

REFERENCES

WAchmad Tohirin (2010). The Cash-Waqf for empowering the small business. Paper presentation at the seventh international Conference-The Tawhidi epistemology Mahmoud Mohieldin (2012). Realizing the Potential of Islamic Finance, Economic Premise. The World Bank Mujtaba Khalid (2014). Waqf as a socially responsible investment instrument: A case for western countries.

European Journal of Islamic Finance Souaiaia Ahmed E. (2014). Theories and Practices of Islamic Finance and Exchange Laws: Poverty of Interest.

International Journal of Business and Social Science, vol., 5 (12) Widiyanto, Mutamimah and Hender (2011). Effectiveness of Qard Al-Hasan Financing as a poverty alleviation model.

Economic Journal of Emerging Markets.

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CHANGE YOUR

MINDSET

CHANGE YOUR

LIFE

ROHAIZAN SALLEHUDIN

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roblems and difficulties will come into everyone’s life and cause havoc to their reality. They bring pain and can feel really obscure. Most people will feel stuck and all they can think of is what they could have done to prevent it from happening. They focus on the “should’ve” and “could’ve” and they keep asking “Why?” They go deeper and deeper into the problem. Solution? What solution?

They feel helpless and maybe even hopeless. People they speak to may offer all kinds of solutions, yet all they can see are problems associated with those solutions.

Give them a solution and they’ll tell you a problem for that solution.

It is not easy to change from being problem-centred to being solutioncentred. But it’s simple – it requires shifting one’s mindset from looking at situations as a problem or a difficulty to looking at them as a challenge. What’s in a word? A lot.

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IT IS NOT EASY TO CHANGE FROM BEING PROBLEMCENTRED TO BEING SOLUTIONCENTRED. BUT IT’S SIMPLE – IT REQUIRES SHIFTING ONE’S MINDSET FROM LOOKING AT SITUATIONS AS A PROBLEM OR A DIFFICULTY TO LOOKING AT THEM AS A CHALLENGE. WHAT’S IN A WORD? A LOT.

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EVERY MORNING I WAKE UP AND SAY TO MYSELF, I HAVE TWO CHOICES TODAY. I CAN CHOOSE TO BE IN A GOOD MOOD OR I CAN CHOOSE TO BE IN A BAD MOOD. I ALWAYS CHOOSE TO BE IN A GOOD MOOD. EVERY TIME SOMETHING BAD HAPPENS, I SAY TO MYSELF, I CAN CHOOSE TO BE A VICTIM OR I CAN CHOOSE TO LEARN FROM IT. I ALWAYS CHOOSE TO LEARN FROM IT.

There are 3 ways in which “challenges” changes the way we look at problems and difficulties. When we say that we’re experiencing challenges, it means that there are solutions, that we’re looking at ways of overcoming them and we can take action.

We’re not just wading through the problem or difficulty. We’re looking for a way out.

Problems and difficulties have a way of making us look inward and focus on the past whereas when we say we’re challenged, or we are experiencing some challenges, we are focusing outward and on the present looking for a way to move into the future. Challenges imply choice. We can do this, or we can do that. It gives us options and power to paddle our way out of the whirlpool of doom and darkness. It allows us to focus on opportunities.

There is an interesting story about Jerry, the restaurant manager, which helps explain “mindset” and how you can shift yours.

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Jerry was always in a good mood and always has something positive to say. If you were to ask him how he was doing, he would always reply, “If I were any better, I would be twins!” The waiters working in the restaurant with him would quit their jobs when he moved, so they could follow him around from restaurant to restaurant.

He was a natural motivator. If an employee was having a bad day, Jerry was always there, telling the employee how to look at the positive side of the situation. One day someone asked him, “I don’t get it! No one can be a positive person all of the time. How do you do it?” Jerry replied, “Every morning I wake up and say to myself, I have two choices today. I can choose to be in a good mood or I can choose to be in a bad mood. I always choose to be in a good mood. Every time something bad happens, I say to myself, I can choose to be a victim or I can choose to learn from it. I always choose to learn from it.

EVERY TIME SOMEONE COMES TO ME COMPLAINING, I CAN CHOOSE TO ACCEPT THEIR COMPLAINING OR I CAN POINT OUT THE POSITIVE SIDE OF LIFE. I ALWAYS CHOOSE THE POSITIVE SIDE OF LIFE.”

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EVERY DAY YOU HAVE THE CHOICE TO EITHER LOVE YOUR LIFE OR HATE IT. THE ONLY THING THAT IS TRULY YOURS THAT NO ONE CAN CONTROL OR TAKE FROM YOU – IS YOUR ATTITUDE, THE WAY YOU SEE THINGS AND SO THE WAY YOU THINK, THE THINGS YOU SAY AND DO.

Every time someone comes to me complaining, I can choose to accept their complaining or I can point out the positive side of life. I always choose the positive side of life.”

“But it’s not always that simple,” the man protested. “Yes, it is,” Jerry said “Life is all about choices. When you cut away all the junk, every situation is a choice. You choose how you react to situations. You choose how you let people affect your mood. You choose to be in a good mood or a bad mood. It’s your choice how you live your life.”

Several years later, Jerry accidentally left the back door of his restaurant open one morning and was robbed by three armed men. While trying to open the safe, his hand, shaking from nervousness slipped off the combination. The robbers panicked and shot him. Luckily, Jerry was found quickly and rushed to the hospital.

After 18 hours of surgery and weeks of intensive care, Jerry was released from the hospital with fragments of the bullets still in his body.

The man saw Jerry again 6 months after the accident and asked him how he was, and his answer had not changed: “If I were any better, I’d be twins.” The man asked what went through his mind as the robbery took place. Jerry replied: “The first thing that went through my mind was that I should have locked the back door!

Then, after they shot me, as I lay on the floor, I remembered that I had two choices: I could choose to live or choose to die. I chose to live.”

“Weren’t you scared?” he asked. Jerry continued, “The paramedics were great. They kept telling me. I was going to be fine.

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But when they wheeled me into the Emergency Room and I saw the expressions on the faces of the doctors and nurses, I got really scared.

In their eyes, I read ‘He’s a dead man.’ I knew I needed to take action.”

“There was a big nurse shouting questions at me. She asked if I was allergic to anything. And I replied ‘Yes’. The doctors and nurses stopped working as they waited for my reply. I took a deep breath and yelled, ‘Bullets!’ Over their laughter, I told them, ‘I am choosing to live.

Please operate on me as if I am alive, not dead’.”

Jerry lived thanks to the skill of his doctors, but also because of his amazing attitude.

What can we learn from Jerry?

Every day you have the choice to either love your life or hate it. The only thing that is truly yours that no one can control or take from you – is your attitude, the way you see things and so the way you think, the things you say and do. If you can take care of that, everything else in life becomes much easier. If you can see problems and difficulties as challenges, you are already half-way there.

At the end of the day, a mindset is nothing more than an established set of attitudes we hold. It is our map of the world – how we see things, how we think, what we say and what we do. If we can see problems and difficulties as challenges, then we rise above them and lose the pain. The next time it happens we know we’ve been able to overcome it and we repeat the lesson.

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ROHAIZAN SALLEHUDIN IS AN EXECUTIVE COACH FOR LEADERSHIP, PERSONAL & CORPORATE TRANSFORMATION WITH MORE THAN 25 YEARS CORPORATE AND BUSINESS EXPERIENCE, AND CERTIFIED AND ACCREDITED WITH THE INTERNATIONAL COACH FEDERATION. SHE IS ALSO A TRAINER, MENTOR, SPEAKER, CREATOR OF “THE LEADERSHIP FACTOR” AND CEO OF TLF GLOBAL CONSULTANCY PLT - A TRANSFORMATION, LEADERSHIP DEVELOPMENT AND COACHING CONSULTANCY BASED IN KUALA LUMPUR. SHE MAY BE CONTACTED AT ROHAIZAN@ROHAIZAN. COM OR +603 6211 0559.

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WHY

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MATTERS MOST TO

SHAREHOLDERS

AND STAKEHOLDERS AT LARGE

HERPIANI NG

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efore we continue with this short article let’s agree first that bad corporate governance is oftentimes a good sign of corporate trouble ahead.

What I like most about corporate governance is that it also serves as a system of checks-andbalances that holds corporate leaders mainly board of directors accountable.

Corporate governance has become a well-discussed and interesting topic in the press.

From time to time newspapers produce, and TVs broadcast, detailed accounts of corporate fraud, accounting scandals, insider trading, excessive compensation, and other perceived organizational failures that lead to lawsuits, resignations, and bankruptcy.

When developed and implemented wisely, corporate governance can become a very useful tool to showcase the board’s commitment to integrity as well as its obligations to shareholders.

Conversely, poor corporate governance policies can cause a breakdown of trust, both internally and in the minds of outsiders.

When this happens, it can result in a loss of shareholders’ confidence that can jeopardize the future of the company.

Decades of corporate scandals from Bank Bali’s 1998 Insider Trading allegation to Enron’s 2001 collapse to Caterpillar Inc.’s 2017 tax and accounting fraud allegations have taught us the paramount importance of good corporate governance in a company.

About 66% of global consumers were said to be willing to pay more for products and services from a company that demonstrates good corporate governance as they believe that being honest and open about processes and operations counts a great deal. Both shareholders and consumers want to see companies operating with integrity, transparency, accountability, and trustworthiness. Good corporate governance is built on a foundation of integrity, transparency, accountability, and trust.

If management is about what we do to run the business, corporate governance is about what we do to see that the business is run properly. All companies not only need good management but also good governance in order to measure up to the expectations of their shareholders and stakeholders at large.

The Board of Directors plays a pivotal role in influencing an organization’s governance environment.

It is also increasingly understood that governance standards are a very important factor in maintaining the trust of shareholders and stakeholders at large, and even in sustaining good financial and share performances of many public companies e.g.

ITMG, Astra, BCA, Sinar Mas, just to mention a few.

The need for corporate governance actually rests on the idea that when separation exists between the ownership of a company and its management, self-interested executives have the opportunity to take actions that benefit themselves, with shareholders and stakeholders bearing the cost of these actions, and from corporate perspectives such conditions under any circumstances should not happen at all.

Corporate governance is the structure of rules, practices, and processes that guides the way a company communicates with stakeholders, achieves objectives, and measures performance.

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In the extreme, poor governance can result in governmental or regulatory fines, contractual penalties, or boycotts by consumers against unacceptable business practices, etc. Even without such consequences, it can lead to a weak culture and bad decision-making. It is not about moral judgement by the stakeholders per se, but the impact of these factors on a company’s long-term performance can be severe.

CORPORATE GOVERNANCE INFLUENCES EVERY ASPECT OF THE ORGANIZATION, INCLUDING THE CORPRATE DECSIONMAKING PROCESS ON THE MOST IMPORTANT ISSUES FACING A COMPANY.

Corporate governance influences every aspect of the organization, including the corporate decision-making process on the most important issues facing a company. Such issues include M&A, JV, JO, partnerships, business litigation, intellectual property matters, regulatory compliance issues, and all other general corporate matters.

Today’s business environment demands that companies do more than just increase shareholder’s value through profits and growth.

Instead, businesses are expected to make a profit while also demonstrating good corporate citizenship through environmental awareness, ethical behavior, and responsible governance practices.

An independent, professional board, strong controls, transparency and shareholder rights generally increase market value. But precise impacts of ‘good governance’ can be hard to pin down. Exact linkages to share price are not often obvious, governance is more important in some periods than in others, and it affects some industries more than others.

An investment’s environmental and social impacts are also among the most prominent issues that responsible investors consider when looking to invest in a company. But any responsible investing analysis would be incomplete if it did not incorporate a meaningful and in-depth review of a company’s corporate governance.

Effective governance frameworks challenge organizations to demonstrate that strategy and outcomes are being delivered at optimum levels while maintaining and adhering to all mandatory processes of rules, regulations, and legislation.

The Boards are held accountable to follow processes and make sound and well-informed decisions based on the processes that make the best use of the available people, resources (financial, technological, methodology and material) and time to ensure the best possible result.

One more thing, the government factor. The role of government cannot be underestimated as like any other administration anywhere in the world, government plays a pivotal role in promoting good corporate governance.

Developing countries like Indonesia have recently been working hard to improve their governance by streamlining and simplifying processes that would improve speed, control, supervision and transparency of government services to the society.

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For Indonesia particularly, this is part of its initiative to promote itself to become one of the most attractive investment destinations in Asia.

There is good evidence that shows that there is positive correlation between good government and good corporate governance.

Good government is now considered as a key element, among others, that improves economic efficiency, growth, and stability as well as encouraging investments in the economy ---and also it contributes to the increased capability of corporations to create another good thing, that is good corporate governance environment.

In conclusion, overall successful corporate governance is predicated on the ability of the Board and Senior Management to demonstrate how it operates within a framework that holds the organization accountable. Boards should take ownership of governance by ensuring the strategy is reviewed and assessed on a planned periodic basis. Measures to assess progress against the strategy should include time to detection, the speed of response and recovery processes. Good government plays an “enabler” role toward good corporate governance in the business contexts.

HERPIANI NG IS GROUP COUNTRY CEO FOR INDONESIA AND REGIONAL DIRECTOR FOR ASIA, FGA HOLDINGS.

Corporate governance is a subject that should concern all investors, yet which can be difficult to understand, why? Because it is not just about executive pay, but it covers all aspects of how companies are managed, including internal control, audits, supply chain awareness, business ethics and regulatory compliance with environmental and consumer right protection laws and so forth. Board ultimate approach is about making sure that the clients’ interests as shareholders are represented and protected at all times.

Last but not least, corporate governance is a dynamic process and is continually evolving.

And it has no boundaries or limits!

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