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ISFIRE an Exclusive Interview With: Islamic Nancereview.Co Special Focus on Risk and Trust in Islamic Banking & Finance ISFIRE An Exclusive Interview with: islamicnancereview.co DATO’ ADNAN ALIAS Volume 4 - Issue 4 | November 2014 - £20 CEO, IBFIM A Special Report on GLOBAL ISLAMIC FINANCE AWARDS 2014 Sponsored by: Published by: ibm.com edbizconsulting.com EDBIZ CORPORATION Product Development Shari’a Advisory Edbiz Consulting (London) Edbiz Research & Analysis Edbiz Corporation Consulting (Pakistan) Publications Training & Conferences Our products and services are underpinned by a common goal: promoting and advocating the ethical values inherent in Islamic nance Edbiz Consulting is a truly unique, international Islamic nance think tank, committed to engendering the value proposition that Islamic nance serves to oer in the global nancial markets. Edbiz Consulting provides multiple services that balance the dual purpose of developing thought leadership in this niche industry and strengthening the Islamic nance capacity for businesses and banks. Our client base is diverse and includes nancial institutions, governments, education providers, established businesses and entrepreneurs. Global Islamic Finance ISFIRE Report islamicnancereview.co 2015 ISLAMIC FINANCE LEADERSHIP PROGRAMME www.edbizconsulting.com ’ala Wa’d Gha l Ju rar M Visit us on: www.gifr.net afu ai ak sa at anking Mud r R c B a ib an ic at Mu ra a B ba Zak amlat b m r Ri Taw a Z l a isa ar a fu l a ru M k a Is M q a ar Is u t k r la a e ha m d M T G - c ic a u d F e n ’ i r a a n i m R a W a b n l a c l n l e a u i a ’ t f I R u s a F J l T a a k l a c m a u b w f i i T c a b a k B a r a k m t - Global r n a u u k a u c l k i q n n l Islamic a u g s - B M I S M M l u u Finance u f k a d s a a a e k h r k a e a Report a a l T b a - r l a e a r 2014 m R k a D M a a t i a m n t i h i t i u s n I M s B i s r - h u u m a i a n a i l s g a b h a M M S l a a u w e l s t l g h h a a w r n r a n a a P i k u a a m M a h l m u a M s S a M w a w m a s - i a u GLOBAL ISLAMIC FINANCE REPORT 2014 a n i r s S h a m i j a a I r D a The Global Islamic Finance Report 2014 (GIFR 2014) is a comprehensive annual k a l a h m review of the activity, trends, new developments and thinking in the Islamic fi- a r a P j I a r a nance industry. It commissions contributions from leading global practitioners a n l i l t e s l I S a l m and thinkers in the field combining technical experience and invaluable knowl- a edge and insight to propel Islamic finance forward in the post recessionary glob- al financial markets. The core theme of this year’s report is “Human Resource Development in Islamic Finance” with chapters on Islamic financial literacy as a tool for promoting Islamic finance, ethics and human resource development, need for talent ecosystem to support sustainable growth, and many others. In addition, the report also includes developments in different industry segments and asset classes, expert analysis on the state of Islamic banking and finance globally. Along with the customary sections, “Review of Industry Segments” and “Country Sketches”, the GIFR 2014 endeavours to educate and incentivise those with a stake in the industry to continue pushing the boundaries of knowledge and innovation. WHAT GIFR 2014 BRINGS TO THE INDUSTRY • Reportage and analysis of the global practices of the Islamic financial ser- vices industry in over 10 sectors • An exposition of Islamic micro-finance • Discussion on ethics and corporate social responsibility in Islamic finance • Inspire the discourse on the integration of commercial objectives and social responsibility • Building effective leadership in Islamic banking and finance • Analysis of the challenges facing the human resource development • Assessment of Islamic financial literacy as a tool for economic reform Edbiz Consulting Volume 4 - Issue 4 | NOVEMBER 2014 Islamic Finance Review | www.islamicfinancereview.co CONTENTS ISSN 2049 - 1905 05 From the Editor 06 Ethics, Rebuilding Trust in Finance & Some Lessons from Islamic Finance - Dr. Nasser Saidi 10 Sheikh Abdelkader Amor, CEO, Al- Maali Consulting Group - Interview 14 Dato’ Adnan Alias, CEO, IBFIM - Interview 18 Do I Trust You? - ISFIRE Insight 24 Risk Management in Islamic Financial Institutions - Mujtaba Khalid 30 Awqaf Properties in Malaysia - Dr. Siti Mashitoh Mahamood 34 Global Islamic Finance Awards 2014 - Special GIFA Report Editor-in-Chief Designed By What’s Wrong with the Current 48 Professor Humayon Dar Fahad Alvi Financial System - Patrick Mahdi PhD, Cambridge University [email protected] O’Neill International Editorial Board Executive Staff Dr. Mehmet Asutay Zia Ullah Zia 54 Gold and Wishful Thinking - Durham University Khuram Shehzad Rizwan Rahman Dato’ Dr. Asyraf Wajdi Dusuki Usaid Hasan Yayasan Dakwah Islamiah Malaysia Advertisements, Commercial and 55 Personality - Issam Al-Tawari Dr. Mian Farooq Haq Subscription Enquiries State Bank of Pakistan Moinuddin Malim Rizwan Malik 57 Pause for Thought - Professor E: [email protected] Alternative International Management Services Humayon Dar Professor Kabir Hassan T: +44 (0) 7791 762 047 Usaid Hasan University of New Orleans 58 Technology Entertainment and Datuk Noripah Kamso E: [email protected] T: +92 (0) 323 7533 723 Islamic Investing Revisited - Islamic Finance Expert Professor Humayon Dar Dr. Asmadi Mohamed Naim Published by University Utara Malaysia Edbiz Consulting Limited Professor Joseph Falzon 4th IFAP Pakistan - IFAP Report 4 Montpelier Street Knightbridge 64 University of Malta London SW7 1EE M. Saleem Ahmed Ranjha United Kingdom Akhuwat T: +44(0) 207 709 3050 Professor Muhamad Rahimi Osman E: [email protected] University Teknologi MARA W: www.edbizconsulting.com Dr. Usamah Ahmed Uthman King Fahd University of Petroleum & Minerals Printed by: Manor Creative, UK From the Editor The vision behind launching ISFIRE was to bring out opportunity by different stakeholders in the Nazarbayev, President of Kazakhstan, who became a publication that should serve as something similar Islamic financial services industry. Mujtaba Khalid’s our fourth GIFA Laureate this year. We also extend to HBR for Islamic finance, and I am happy to report article on operational risk management in IBF is a our special congratulations to His Excellency Najib that we are inching towards our goal. In a period of continuation of the focus on trust and risk. Within Razak, Prime Minister of Malaysia, for receiving three years, ISFIRE has emerged as one of the most operational risk, reputational risk is a major concern, Global Islamic Finance Leadership Awards 2014 trusted publications in Islamic banking and finance which is directly related with the notion of trust. (Country Category) on behalf of Malaysia. (IBF). While a number of publications have gone This was in fact topic of our fourth Islamic Finance Patrick Mahdi discusses what is wrong with the out of print in the last three years, ISFIRE continues Access Programme in Pakistan (IFAP-PAK4), which Western capitalistic system and the role of fiat to grow with the industry. It is now the only print Edbiz Consulting held at COMSATS Institute of money therein. It is an interesting article, which magazine being published from London. With an Information Technology Lahore. An IFAP Report must be read in conjunction with Rizwan Rahman’s estimated size of the industry of nearly US$2 trillion, covers the event that was attended by a large brief article on the topic of gold money. My own our aim is to make ISFIRE as the top publication number of bankers from around the Lahore region. Pause for Thought in this issue is on the issue of covering all aspects of IBF. Incidentally, this is the There are two interviews included in this issue, money and inflation. These three pieces should give last issue of Volume 4 (2014); so we would like to bid which the readers will find educational as well as a balanced view on the topic to the readers. goodbye to our readers, with good wishes for 2015. inspiring. Dato’ Adnan Alias, CEO of IBFIM, shares Apple’s success has been widely discussed in the This issue of ISFIRE brings to you a number of stories with us the crucial role his organisation is playing world, including in IBF. This issue have a special and reports but perhaps the most interesting one is in developing the required talent for the Islamic focus on the treatment of entertainment in IBF, with an analysis of trust in IBF. Our special report on the financial services industry. He is certainly an a special focus on Apple’s iTune business. This issue most trusted and least trusted brands in IBF reveals inspirational personality, who is revered by his staff. is relevant to other companies running social media a story. While there has in the recent past been a His interview suggests that he believes in taking his platforms, e.g., Twitter and Facebook etc.
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