Islamic finance is a specialized field within the broader finance industry that operates in accordance with Islamic law (Sharia). It adheres to principles that prohibit the payment or receipt of interest (riba) and promote risk-sharing, ethical and socially responsible investments in sharia compliant businesses and asset-backed financing.
The Islamic finance industry is a rapidly growing and exciting field with a wide range of career opportunities.
If you are interested in a career that is both challenging and rewarding, Islamic finance may be the right choice for you.
The Islamic finance industry is expanding into new markets, such as Southeast Asia, Africa, Latin America and growing fast in Europe and its traditional Middle East market.
As per a recent report in the National News, the global Islamic finance industry is expected to grow by around 10 per cent in 2023-2024 despite the economic slowdown, after posting a similar expansion in 2022 mainly led by the GCC countries, according to S&P Global Ratings.
Demand for Sharia-compliant financing is set to outpace conventional funding in 2023, driven by strong economic growth and development agendas in key markets. This is creating new opportunities for professionals with experience in Islamic finance.
CAREER OPTIONS IN ISLAMIC FINANCE INDUSTRY
Islamic finance offers varied career options some of these are discussed below:
- Islamic Banking: This is the core of Islamic finance. Islamic banks offer financial services and products that comply with Sharia principles. Career opportunities include roles in retail banking, corporate banking, and investment banking within Islamic financial institutions.
- Takaful (Islamic Insurance): Takaful is an Islamic alternative to conventional insurance. Opportunities exist for underwriters, actuaries, claims managers, and other roles in Takaful companies.
- Asset Management: Islamic asset managers oversee investment portfolios that comply with Sharia principles. They may work for specialized asset management firms or within Islamic banking institutions.
- Investment Banking: Investment bankers specializing in Islamic finance advise on mergers and acquisitions, capital raising, and financial structuring, ensuring compliance with Sharia principles.
- Financial Advisory and Consultancy: Professionals in this field provide advice and consulting services to clients seeking Sharia-compliant financial solutions. This includes structuring complex financial transactions and ensuring compliance.
- Private Equity and Venture Capital: This sector focuses on investing in businesses that adhere to Islamic principles. Professionals in this field analyze potential investment opportunities and manage portfolios.
- Real Estate Finance: Real estate transactions often require specialized Islamic financing solutions. Careers in this field involve real estate financing, investment, and development while adhering to Sharia principles.
- Compliance and Risk Management: Ensuring that financial products and transactions are Sharia-compliant requires specialists in compliance and risk management. They assess and mitigate risks related to Islamic finance.
- Financial Technology (Fintech): Fintech companies have developed platforms and services that adhere to Islamic finance principles. Career opportunities include software development, data analysis, and fintech management roles.
- Education and Research: Academics and researchers are vital in advancing the field of Islamic finance. They may work in universities, research institutions, or think tanks, or contribute to academic publications.
- Legal and Regulatory Roles: Lawyers and regulatory professionals specializing in Islamic finance help ensure that financial institutions and transactions comply with Sharia law and local regulations.
- Auditing and Accounting: Auditors and accountants specializing in Islamic finance provide assurance services, financial reporting, and auditing of Islamic financial institutions.
- Charitable and Social Finance: Some individuals work in the field of Islamic finance to support charitable and social causes through instruments like Zakat, Waqf, and Sadaqah.
ISLAMIC FINANCE EDUCATION
So, if you are interested in a career in Islamic finance,
- First, you should obtain a strong educational background in Islamic finance. There are a number of universities and colleges that offer undergraduate and graduate degrees in Islamic finance.
- You should also consider obtaining professional certifications in Islamic finance.
- Knowledge of arabic as a language and study of fiqh and usul and other related Islamic study will prove to be differentiator and give you an edge over other conventionally qualified individuals.
Islamic finance education is being offered by several local and internationally recognized Islamic finance institution.
Some of these institutions are being discussed below. You can visit their websites to gather further information.
- AAOIFI : The accounting and auditing organization for Islamic finance Institutions, offers three fellowship CIPA, CSAA and CPD.
- Islamic Online University offers online courses in Islamic Finance and banking.
- Istanbul Zaim University offers course in Islamic Economics & Finance.
- Inceif University Malaysia offers full time course in Masters in Islamic Finance and other certification courses.
The above are some of the reputed and known institutions offering credible courses in Islamic finance.
There are several other institutes offering various courses, however when choosing a course the credentials of the institute the people behind it and course curriculum should be well researched.
In addition to the above, I would also encourage youngsters to explore Job opportunities with Islamic Development Bank which is an Islamic Multilateral Bank and offers the Youth Development Program as a career growth and development program.
The potential of this industry /sector is untapped and underutilized and it can offer a good opportunity for Muslim youth to find a career in this field which is both financially rewarding and provides an opportunity to serve your deen as well.
May Allah guide us all to the right path, Ameen.