You have referred to Shariah Advisory as the backbone of the industry. Could you elaborate further on this statement?
Shariah advisory is the backbone of Islamic finance – because simply, the soul of Islamic Finance is Shariah.
And who best knows about Shariah other than the Shariah scholars.
It is not enough for Islamic finance to have just products and structures and services without having its soul intact.
As Islamic finance goes on its journey towards the greater good, we have to maintain the spirit and the essence of Shariah within the industry.
What kind of background or skillset is required to function in the role of Shariah Advisory in Islamic Finance?
A Shariah advisor needs to be an all-rounder – of course an in-depth knowledge in Shariah is very important, but a Shariah advisor needs to also have other, or needs to also have sufficient knowledge and be well versed in other aspects of business such as knowledge in law – the legal aspects, the risk aspects, policies, governance, finance, etc.
This is to ensure that a Shariah ruling or a Shariah decision or Shariah opinion is made in a holistic manner in order to provide a workable solution for the industry.
As you know, a product or services, it’s not sufficient for it to just be Shariah compliant; but it has to be commercially viable as well.
So, the combination of all this knowledge in a product structure or in an Islamic product structure is very important.
Is there sufficient talent for Shariah Advisory in the industry?
The talent pool of Shariah investors is growing, Alhamdulillah, but it is still not enough, in my opinion.
We need the right talent to fill up this cavity within Shariah Advisory to be in line with the projected growth of Islamic finance.
What I mean by the right talent are individuals who not only possess or has knowledge of the theory and theoretical and practical aspects of Shariah or Islamic finance, but also people who have the right mindset.
People who have the builder and the nurturer mindset; to actually develop and push and innovate the industry further.
Otherwise, the Islamic finance industry will not have a sustainable growth and can be stagnant if we keep on replicating the same structures, the same products without further innovation and development.
What future do you foresee for Shariah Advisory?
The future of Shariah Advisory is bright, but we still have a long way to go.
We need the concerted efforts of all stakeholders to take this area to the next level with its soul intact.
A concerted effort is crucial and important to make sure that it’s a sustainable growth for the industry as a whole, as well as the growth for the value-added propositions that the Shariah advisors can bring to the industry.
If you are interested to get us to help you with Islamic finance consultancy and Shariah advisory, feel free to contact us. Our team are looking forward to grow your brand with Shariah compliance products and services.