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Muhammad Zubair Mughal ASIA

A passionate individual with a strategic vision in Islamic Banking especially in Islamic Microfinance with good Research and Product development skills. Zubair has 10 years experience in his field with the specialised expertise of Islamic Micro Financial Engineering, Poverty alleviation Strategies, Training & Research, Structuring of Islamic Microfinance products and Islamic Financial Publication.

Apart from being the Chief Executive officer of AlHuda Center of Islamic Banking and Economics, he is Chief Executive officer of “Halal Research Council” , he is also founding director of “Islamic Microfinance Network” and Chief Editor of “True Banking” and “Islamic Microfinance News” – dedicated magazines on Islamic Banking and Microfinance. Zubair earned a M.Phil degree in Islamic Microfinance, and M.sc degree in Mass communication. He contributed his expertise of Islamic Finance in 30+ countries with different local and Multilateral organisation e.g. IFC-World Bank, UNDP, ADB, IRTI-IDB etc. for poverty alleviation and social development MM: Could you brief us on your aspirations for Islamic Economy as an authority of the industry and a frequent traveler to the different parts of the world to initiate many things in the recent past?

MUHAMMAD: Islam is a complete code of life, which Zubair Mughal CEO of AlHuda CIBE speaking at International conference “The Enterprise and Finance”, which is jointly organised by World Bank, IMF, IFC and European Bank of Reconstruction and Development at Sousse - Tunisia

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gives us guidance in all aspects of our lives. And it is observed that Muslim Ummah mostly focuses on Ibadat (Man to God relationship) comparatively to Muamalat (man to man relationship). Why is Muamalat a less privileged area? Therefore, I am motivated to revive the Islamic economic and banking system, which is the imminent component of Muamalat. So to achieve my optimum goal to get

MM: As the CEO of different organisations including the Islamic Finance education centre, Halal Research and Micro Finance in Pakistan, what are the objectives of your esteemed organisations and how do you see the progress?

MUHAMMAD: All of my organisations are the sub-branches of different areas of Muamalat as “Alhuda Center of Islamic Banking and Economics” is dealing with Islamic Banking and Finance, while “Halal Research Council” is dealing with Halal Food and non-food items, “Center of Excellence in Islamic Microfinance” is dedicated to provide solution of poverty alleviation and social development through Islamic way, So our objective is to introduce the real face of Islamic values related to business and finance in all branches, aspects, and areas. As per the concern of the progress of the Islamic economy, Islamic economics is emerging very fast in the Middle East and Asia and even Europe, America, and Africa as well, it’s get new shine after the recent international financial crises which was actually the failure of conventional financial system.

The Halal and Islamic Banking and Finance Industry is expected to reach the 3 trillion dollar mark soon and the Islamic Microfinance industry is about USD 1 Billion worldwide. The

Halal industry has about 1.7 billion Muslim consumers market but it is not necessary that it would be only utilised by only Muslims while non-Muslim also have equal right to utilise Halal products and services, we can observe very easily that Islamic banking or Halal products are equally popular in nonMuslim societies as well.

MM: Could you tell us about the receptiveness level & challenges of different countries where you have travelled and initiated your programmes?

MUHAMMAD: Some of the countries are very welcoming and respective of Islamic Banking such as Tunisia, Central Asia, Morocco, Tanzania etc., but in some countries there is a different perception and people sometimes interpret Islamic finance as a purely religious product, however, this is a misconception. Islamic finance is actually a business and financial product with religious aspects that can be engineered for people of all faiths, religions, and backgrounds. For instance, in Nigeria, Islamic finance has been treated as a religious product,

People sometimes interpret Islamic finance as a purely religious product, however, this is a misconception. Islamic finance is actually a business and financial product with religious aspects that can be engineered for people of all faiths, religions, and backgrounds ISSUE 10 2014 / Islamic Banker ASIA /

PHOTO COURTESY OF AL-BARAKAH

rid people from Riba & other haram component of our social and business life, I travel all around the world in order to introduce Islamic economics, banking, and finance and try to reveal the importance of halal activities of human life.

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CHAT WITH MM I MUHAMMAD ZUBAIR MUGHAL

44% of world poverty resides in the Muslim world and the UN has classified 26 OIC countries as least developed nations. One of the major strategic objectives is to alleviate the poverty from the Muslim world and to make new Muslim leaders through entrepreneurship, educational reforms, and social development. only limited to Muslims. This is not the correct approach for marketing Islamic financial services. Islam is a deen and according to the definition of deen, deen provides guidance to other religions as well. Therefore, Islamic financial products are not only limited to Muslims, however, Non-Muslims can also cultivate the blessings of Islamic financial products. Therefore, Islamic finance should be treated as a system, not a religion.

MM: In your view with the

experience of different countries, central bank officials and other stakeholders whom you have met so far, what are the challenges the that Islamic economy is currently undergoing globally?

MUHAMMAD: The major challenge is harmonisation. Even harmonisation among the different sects of Islam is well, I have travelled about 30+ countries but unfortunately different countries have different approach, for instance, India has about 200 million Muslims which have about 15% of their population but RBI is reluctant to facilitate Islamic Banking services to

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provide the Shari’a Compliant banking and financial solution to the Muslim segments of the Society but on the other hand countries like U.K, South Africa etc where Muslim have less than 3% or 4% share of their population have proper legal and legislative system to provide banking and financial solution to Muslims according to their religious believe.

MM: Islamic Micro Finance is

considered to be the need of the hour for many nations. Could you brief us on what made you to venture in to this and your strategic objectives for this particular sector?

MUHAMMAD: As you probably know, poverty in the Muslim world is increasing very rapidly. One of the reasons is that in many Muslim societies, people do not utilise interest based financing and remain excluded from financial access, which is the main cause of the poverty in Muslim world, if we want to include these people into the financial system, then we should introduce Islamic microfinance, otherwise, the trend of poverty in the Muslim world will increase day by day. According to our bank report, 44% of world poverty resides in the Muslim world and the UN has classified 26 OIC countries as least developed nations. One of the major strategic objectives is to alleviate the poverty from the Muslim world and to make new Muslim leaders through entrepreneurship, educational reforms, and social development. It is really surprising for us that Islamic microfinance has less than a 1% share

Halal industry has about 1.7 billion Muslim consumers market but it is not necessary that it would be only utilised by only Muslims while non-Muslim also have equal right to utilise Halal products and services.

MM: In your opinion, what are the biggest challenges and opportunities faced by Halal economy in Pakistan and globally?

MUHAMMAD: The biggest challenges are non-availability of qualified professionals and unavailability

After the financial breakdown, it has been realised that Islamic finance can provide a sustainable alternative to the conventional system. of resources for women, lack of awareness, and misconception, while the biggest opportunities are to get rid ourselves from riba and haram activities, to generate employment and entrepreneurship through the halal economy.

PHOTO COURTESY OF AL-BARAKAH

within the Islamic finance industry.

The poor are only 1% in the society.

Why is Islamic Banking and Finance not servicing the poor people?

Is Islamic banking and finance only for rich people? Does Islamic Banking not have any solutions for poor people?

Thus, we should promote the Islamic microfinance industry.

MM: Early 2014, Dr. Moulana Taqi

Usmani was appointed by State Bank

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CHAT WITH MM I MUHAMMAD ZUBAIR MUGHAL

We have dedicated 2015 for European and Western countries because there is a dire need for such products, services, and awareness for this market.

can provide a sustainable alternative to the conventional system. The prominent Islamic finance practitioners may be the future leaders who may rule the future global financial industry.

MM: Could you share with us on

of Pakistan to convert the banking industry to Islamic banking industry.

What is your opinion regarding this?

MUHAMMAD: MaulanaTaqi Usmani is a big authority and icon in Islamic finance, who spreads the light of Islam and Islamic finance. He contributed a lot for the development of Islamic Banking and Finance industry with real zeal not only in Pakistan but globally.

It is our honour to have Taqi Usmani appointed for this task.

MM: What would you like to say to the leaders and followers of this industry?

MUHAMMAD: Formulate and create

your plan of contribution for the Islamic Economy in the near future?

MUHAMMAD: In 2014, we dedicated

our efforts to the African market and we did extensive work in Nigeria, Tanzania, Kenya, Tunisia, Mauritius, South Africa, and so on. We have dedicated 2015 for European and Western countries because there is a dire need for such products, services, and awareness for this market. We will still continue to promote Islamic microfinance for poverty alleviation and social development around the world.IBA

the true Islamic Banking based on Shari’a rather than a reversedengineered conventional products and please do not discriminate against Western Muslims, as this is a deviation from the true Islam.

MM: What would you love to convey

to the youngsters of the industry?

MUHAMMAD: Islamic Banking and

Finance has a big future and in the near future, a lot of Islamic banks will emerge. And even the Western World is also trying to enter into this niche industry to sustain their financial system. After the financial breakdown, it has been realised that Islamic finance

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Full Name: Muhammad Zubair Mughal Nationality: Pakistan Qualifications: M.Sc, M.Phil – Islamic Banking and Finance Professional Goal: Alleviate the Poverty through Islamic Microfinance Favourite Shari’a Scholar: A Secret Inspiring Islamic Finance Book: One line advice: Islamic Banking and Finance should be solution for All