Global Real Estate Personality with a Sustainability Overlay 62 Sheikh Nedham Yaqubi Christian A
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Committed to Excellence! [email protected] | www.edbizconsulting.com Promoting and Advocating Ethical Values Inherent in Islamic Finance Edbiz Consulting is a truly unique, international Islamic financial advisory firm, committed to engendering the value proposition that Islamic finance serves to offer in the global financial markets. Edbiz Consulting provides multiple services that balance the dual purpose of developing thought leadership in this niche industry and strengthening the Islamic finance capacity for businesses and banks. Our client base is diverse and includes financial institutions, governments, education providers, established businesses and entrepreneurs. We are proud of our international network that spans five continents and includes leading names within and beyond the industry. Our aim is simple: to push the Islamic finance industry forward through dedication, collaboration and innovative thinking. Taking Sharia-compliant finance to a whole new level www.gifr.net An Official Publication of Islamic Bankers Association Discounted Price AvailableAvailable £250 NOW!NOW! Place your Order Today! +44 (0) 20 7147 9970 or E-mail at [email protected] GIFR 2015, like its predecessors, provides the most comprehensive analyses of activities, trends, new developments and progress of IBF globally. It commissions contributions from leading global practitioners and thinkers in the field combining technical experience and invaluable knowledge and insight to propel Islamic finance forward in the post recessionary global financial markets. The core theme of this year’s report is “Leadership in Islamic Banking and Finance” with chapters on Centres of Excellence in IBF, Leadership & Control in IBF and the the Leadership Role of Shari'a Scholars. In addition, the report 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, Islamic Finance Country Index and Country Sketches, the GIFR 2015 endeavours to educate and incentivise those with a stake in the industry to continue pushing the boundaries of knowledge and innovation. WHAT DOES GIFR 2015 BRING TO THE INDUSTRY? k An in-depth analysis and ranking of the leading countries in the global Islamic financial services industry k Reportage and analysis of the global practices of the Islamic financial services industry in over 10 sectors k An exposition of a collective strategy for growth and competition in IBF k Practical examples of innovation in IBF Published by: k Building effective leadership in Islamic banking and finance k Leadership roles of industrial families and Shari'a scholars in IBF Islamic Wealth Management Report 2015 Edbiz Consulting has partnered with Labuan International Business and Financial Centre (Labuan IBFC) to publish an Islamic Wealth Management Report (IWMR) in 2015. The report is aimed at narrowing the demand and supply gap in Islamic wealth management products and solutions. Further the report will explore the growth in Islamic wealth, highlighting its concentration in dierent regions, providing crucial business intelligence to supply-side leaders and potential clients of the Islamic wealth management industry. International Business "The Islamic wealth management sector remains one of the few untapped areas left in the and Financial Centre, Malaysia industry. By bringing this report to market, we hope to initiate a robust discussion surrounding the www.labuanibfc.com utilisation of Shari'a compliant wealth structures and, specically private wealth management structures," said Director General of Labuan Financial Services Authority, Datuk Ahmad Hizzad Baharuddin. "With the increasing number of Muslim individuals and families appearing in the global wealth list and growth in Islamic nancial assets, it is not unrealistic to assume that there is an increase in Islamic wealth globally. It is, therefore, high time that a Report analyzing the developments, products and solutions in Islamic wealth management is produced, which should assist the players to narrow the demand supply gap." Professor Humayon Dar, Chairman of Edbiz Consulting. www.edbizconsulting.com ISSN 2049 - 1905 CONTENTS ISLAMIC FINANCE REVIEW | WWW.ISFIRE.NET VOLUME 5 - ISSUE 4 | DECEMBER 2015 TALKING POINTS SUCCES STORY Transformation of Agrobank 08 Towards the Kazakhstan’s System of Islamic Finance 56 Nadir Burnashev A Story of Leadership and Success 26 Fudiciary Ratings - A Distinctive Approach ISFIRE REPORT Sabeen Saleem 36 Global Islamic Finance Awards 2015 32 Shari’a Conforming Investments in Global Real Estate PERSONALITY with a Sustainability Overlay 62 Sheikh Nedham Yaqubi Christian A. Lange & Richard Birnbaum Renowned Shari’a Scholar 64 Islamic Finance: Is it About How Fast to Get There? Dr. Marizah Minhat & Dr. Nazam Dzolkarnaini ISFIRE INSIGHTS 68 Prudent Ethical Investment Pioneered by a Leader in INTERVIEWS Islamic Asset Management 12 His Excellency Nursultan Nazarbayev President of the Republic of Kazakhstan PROFILE 72 A Conventional Banker’s Unfinished Journey in Islamic 18 Marvi Memon Banking Minister of State and Chairperson of Benazir Income Support Programme, Government of Pakistan PAUSE FOR THOUGHT 70 The Need and Rationale for Setting Up an Islamic Diaspora Bank Professor Humayon Dar Editor-in-Chief University of Malta Advertisements, Commercial and Professor Humayon Dar Professor Muhamad Rahimi Osman Subscription Enquiries PhD, Cambridge University University Teknologi MARA Rizwan Malik Professor Dr. Mehmet Bulut E: [email protected] Istanbul Sabahattin Zaim University, Turkey International Editorial Board T: +44 (0) 7791 762 047 Dr. Mehmet Asutay Dr. Usamah Ahmed Uthman Usaid Hasan King Fahd University of Petroleum & Minerals Durham University E: [email protected] Dato’ Dr. Asyraf Wajdi Dusuki Dr. Nafis Alam T: +92 (0) 323 7533 723 Yayasan Dakwah Islamiah Malaysia University of Nottingham Malaysia Campus Dr. Mian Farooq Haq Published by Designed By State Bank of Pakistan Edbiz Consulting Limited Moinuddin Malim Fahad Alvi 305 Crown House, North Circular Road, Park [email protected] Alternative International Management Services Royal, London, NW10 7PN, United Kingdom Professor Kabir Hassan Executive Staff T: +44(0) 207 709 3050 University of New Orleans E: [email protected] Zia Ullah Zia Datuk Noripah Kamso W: www.edbizconsulting.com Islamic Finance Expert Khuram Shehzad Dr. Asmadi Mohamed Naim Usaid Hasan University Utara Malaysia Imran Khan Afridi Professor Joseph Falzon Zahra Naqvi 6 FROM THE EDITOR From the EDITOR I am pleased to present to you the last issue of the volume 5 of ISFIRE, which I am sure you will like for its cover page and the contents that follow. It gave me immense pleasure when I was editing this issue, as the articles and reports included herein are undoubtedly of the highest quality and standard when compared with other magazines and similar publications in the field of IBF. The cover story features His Excellency Nursultan Nazarbayev, President of Kazakhstan – a country that has made impressive progress in adopting and implementing IBF, in a short span of time. Since the establishment of Al Hilal Bank Kazakhstan in 2010, the country has made steady progress in developing IBF in parallel with its conventional banking and finance, consistent with the so-called dual banking system that has successfully been developed by the likes of Malaysia and numerous other countries. Central to all the IBF-related developments has been the man at the top of the political hierarchy – the President himself – and we thought of interviewing him for this issue of ISFIRE. In addition to the President’s interview, we have also included a comprehensive article by Nadir Burnashev, Advisor to the Chairman of the Financial Institutions’ Association of Kazakhstan (FIAK), which includes updates on regulatory developments and challenges facing IBF in Kazakhstan. The fifth Global Islamic Finance Awards (GIFA) took place in Bahrain on September 28, 2015 and this issue provides a comprehensive account of the awards programme and the impressive awards ceremony. The ISFIRE Report also analyses the geographical spread of the GIFA recipients. Agrobank from Malaysia won the “Upcoming Islamic Bank 2015” award at GIFA, and we thought of sharing its success story of transformation from a conventional into a full-fledged Islamic bank. In this respect, the role of its CEO, Dato’ Wan Mohd Fadzmi Wan Othman, has been highlighted as a spearhead of change and transformation. It is an interesting reading and should be of relevance to those who contemplate converting their conventional banks into full-fledged Islamic banks. In our view, the conversion of conventional banks will bring the quickest further growth in IBF. This issue also contains an exclusive interview with Marvi Memon, Minister of State and Chairperson of Benazir Income Support Programme (BISP) in Pakistan. She explains how her involvement in BISP has changed her perspective on life. Also, it is interesting to note that she presents financial inclusion and poverty alleviation as part of the wider agenda of Islamisation of Pakistan economy. Our Personality of the issue is Sheikh Nedham Yaqubi (also known as Sheikh Nizam Yaqubi), arguably the most active Shari’a scholar in the global Islamic financial services industry. He shares with us some untold aspects of his wonderful personality. He is the first Shari’a scholar to feature in our Personality