New academic courses available for Islamic finance through aafaq collaborations in Bahrain, UAE

Source: aafaq. The memorandum of understanding (MoU) was signed by Dr Mahmoud Abdalaal, CEO of aafaq Islamic Finance (right), Professor Bruce Taylor, President of ECT (left), and Wael Al-Anqar, Chairman of the Board of Trustees and CEC presenter (not pictured).

The Institute of Finance and Management (IFM), a training institute for global professional certificates in Islamic finance, has partnered with the Emirates College of Technology's (ECT) Continuous Education Centre (CEC), an Abu Dhabi-based private institution of higher education, to explore the development of human resources, research and consultancy.

Under the terms of the agreement, IFM and ECT will issue a joint professional diploma in Islamic finance inclusive of Islamic banking, Islamic capital markets, risk management for Islamic financial institutions, accounting, International Financial Reporting Standards (IFRS) vs Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI), and takaful. The certificates bearing the logos of both parties will be issued upon successful completion of the course.

Dr Mahmoud Abdalaal, CEO of aafaq Islamic Finance, said: “We continue to partner with pioneering and leading institutions in the UAE to contribute to the progress and development of the nation’s economy, specifically by preparing qualified and skilled professionals who can lead the country towards economic excellence. The highly strategic collaboration between IFM and ECT and CEC will provide high-quality training and professional development programmes to students to fuel their career growth. We are confident that this partnership will result in building visionary Islamic finance leaders of the future who will lead Dubai in its efforts to become the capital of the global Islamic economy in a few years.”

“In a strategic move, ECT has collaborated with IFM to offer joint diploma and certificate courses in wide range of Islamic Finance -related topics to build the professional competences of the UAE,” added Professor Bruce Taylor, President of ECT. “CEC is a reputed institution for distinctive educational programmes and the courses offered under the MoU are specifically developed for aspiring students looking to build a career in the promising Islamic finance sector. We are upbeat that our partnership will help in strengthening the UAE’s human capital, enabling them to play a decisive role in the banking and finance industry to address the challenges of the global economy.”

“The collaboration between IFM and ECT-CEC will offer the best Islamic finance programmes and courses with a strong focus on research, innovation, and training. We aim to underscore the importance of Islamic finance in the current and future economic perspectives. Aside from benefitting both parties, the partnership will contribute in building a generation of qualified professionals with the skills to address the challenges of the local, regional and global economies,” concluded Dr Mahmoud.

Source: aafaq. The memorandum of understanding (MoU) was signed by Dr Mahmoud Abdalaal (right), and Dr Sheikh Khalid Bin Mohammed Bin Abdullah Al Khalifa, Founder and Chairman of Board of Trustees at University College of Bahrain

The MoU follows a separate signing ceremony between aafaq Education, an IFM subsidiary specialising in managing and investing in educational institutions, and the University College of Bahrain. The two organisations will offer an Executive Master’s Degree in Islamic Finance in the UAE.

The new agreement comes as the UAE is witnessing growing investments towards human capital to raise the bar of Islamic finance in line with Dubai’s efforts to achieve the vision of becoming the capital of the global Islamic economy. Aafaq Education will provide the necessary licensing for the provision of the new Master’s programme in the UAE, in addition to the required offices and state-of-the-art classrooms along with the management of the programme. Aafaq Education will also be responsible for marketing and promoting the new academic programme in the UAE and the GCC region.

Dr Mahmoud said: “The agreement with the University College of Bahrain is a significant addition to aafaq Education’s network of strategic partnerships aimed at making a positive impact in terms of driving faster growth and development of the Islamic finance industry which is considered a pivotal contributor to the global economy. The new partnership supports the ongoing efforts to provide the Islamic finance industry with highly qualified professionals who are able to continue the journey of excellence and leadership in the UAE and reinforce the country’s position on the map of the world Islamic economy.

“It will help in addressing the growing need for specialised manpower to deal with the ongoing changes and developments of Islamic banking products and services. At the same time, it will leverage available opportunities in the Islamic finance industry that continues to play a crucial role in maintaining a stable global economy and is poised to reach a total of US$3.4 trillion by 2020. We are confident that this agreement will be of great benefit in building competences and encouraging investment in human capital to achieve Dubai’s 'Capital of Islamic Economy' initiative launched by HH Sheikh Mohammed Bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai.”

Dr Sheikh Khalid Bin Mohammed Bin Abdullah Al Khalifa, Founder and Chairman of Board of Trustees at University College of Bahrain, commended aafaq Islamic Finance’s vital role in supporting the UAE market with best-in-class Islamic financial services. He underlined their efforts to encourage research, development and training to address the various needs and requirements of the Islamic economy.

“Cooperating with one of the leading finance companies in the UAE opens up a new door for us to expand our specialised academic programmes and paves the way to contribute effectively in providing the local and the GCC markets with highly qualified human resources who have the skills and talents to face emerging challenges and take advantage of the promising prospects in Islamic finance, in support of the serious efforts to promote (the) Islamic economy,” Dr Al Khalifa said.

Established 13 years ago, the University College of Bahrain is a provider of the best higher education and academic Bachelor and Master degree programmes. It has a total of more than 1,500 Bachelor and Master graduates in business management, information systems, and graphic design. In line with the growing role of the GCC region as a key player in the Islamic economy, the University College of Bahrain is keen to expand its scope of academic programmes in Islamic finance through effective partnerships with leading financial institutions such as aafaq Islamic Finance.

Launched to support the Islamic economy concept, IFM provides a unique range of certificates with global partners along with a wide spectrum of management courses and programmes through an e-learning platform. In addition, it provides professional training services to individuals, institutions, banks and organisations.

The ECT was established in 1993 by the UAE Ministry of Education to provide technical and business development education. The CEC was opened with the goal of offering diverse, efficient and high-quality training programmes and professional development services to individuals and institutions in the public and private sectors.

Takaful market could surpass US$50 billion by 2020

The aafaq Center for Research in Islamic Economy (ACRIE) and Hamdan Bin Mohammed Smart University's (HBMSU's) Dubai Center for Islamic Banking and Finance (DCIBF) have released a report on takaful at the third Global Islamic Economic Summit (GIES) in Dubai, UAE.

Takaful: Global Challenges to Growth Performance and Governance was developed in collaboration with the Dubai Islamic Economy Development Centre (DIEDC), and ACRIE, a subsidiary of aafaq Islamic Finance. 

 
The report reveals that the GCC region currently dominates the takaful business, with Southeast Asia and Africa as the next biggest markets. The report estimates that the global takaful market could be worth US$52.5 billion by 2020. Potential obstacles include the relative under-development of insurance distribution channels in several emerging markets, however.

HE Essa Kazim, Governor of the Dubai International Financial Centre (DIFC) and Secretary General of the DIEDC said: “The takaful sector is an important component of global Islamic finance that requires more attention and research in order to address major issues and achieve long-term growth. We commend DCIBF for its thorough and precise study on prevailing trends, opportunities and threats in the takaful domain.”

Dr Mansoor Al Awar, Chancellor, HBMSU, said: “Over the last 10 years the number of takaful companies has climbed nearly four-fold, reflecting the growing global popularity of the sector and its increasing importance to the development of Islamic finance. Despite its gains, though, the industry is still under-manned and faces several issues in vital areas such as innovation, distribution, and legal structures, among others. DCIBF’s report exhaustively investigates the key factors affecting the performance and governance of takaful and what actions government and industry need to take to ensure sustained and profitable growth.”

HE Dr Abduljaleel Alblouki, Deputy Chairman of aafaq Islamic Finance, added: “ACRIE and DCIBF and DIEDC have prepared an outstanding account of the current Takaful landscape and key areas for improvement that can further increase the sector’s impact on the global Islamic economy. It was a very enlightening experience for us to join the Center in exploring the takaful industry’s mechanisms, strengths, and gaps. Our report gives takaful players and stakeholders a clearer picture of what to expect, what to address and what to aim for as the sector gains a firmer foothold on the international markets.”

Recognizing takaful’s growing importance as an Islamic alternative to insurance, HBMSU and DCIBF tapped Dr Omar Fisher to prepare the report. Dr Fisher, who earned his PhD in takaful in 2005, has founded takaful companies in three countries. He said: “The Takaful Report, a groundbreaking effort by DCIBF, looks into the global trends and major challenges facing this risk management sector by covering 219 takaful operators across 39 countries. The publication of such comprehensive report further reinforces knowledge sharing in the industry and anchors Dubai as the Capital of Global Islamic Economy.”

Produced in Arabic and English to reach a broad international audience, the scientific report examines the efficiency and financial stability of the Takaful sector in countries with dual financial and economic systems. It identifies and discusses various Islamic insurance challenges and issues, quantifies investment trends, and analyses the impacts of demand and industry structure on market movements. It also explores the governance mechanisms of the takaful industry, delves into diverse takaful operational models, and provides key recommendations to policy makers and stakeholders.

The key insights provided by Takaful: Global Challenges to Growth Performance and Governance reflect the growing role DCIBF is playing in investigating and studying major technical and socioeconomic issues affecting Islamic banking and finance. The Center is the result of HBMSU’s efforts to become the first learning institute to launch a dedicated platform for enhancing both academic knowledge and human capital development in Islamic banking and finance at the regional and international levels. DCIBF embodies HBMSU’s commitment to the provision of quality education, training, research and community service and the promotion of best practices in the field of Islamic banking and finance.

Aafaq Islamic Finance and ICPAP launch CPA Islamic finance certification programme in UAE

Source: aafaq Islamic Finance.

Aafaq Islamic Finance, a provider of Islamic finance products and services in the UAE, announced the first-ever CPA Islamic Finance certification programme in the UAE in conjunction with the Institute of Certified Public Accountants of Pakistan (ICPAP) in early April.

The CPA Islamic Finance Certificate is chaired by a CPA Islamic Board convened under the patronage of Sheikh Faisal Bin Saoud Bin Khalid Al Qassimi, Dr Mahmoud Abdalaal (Chairman of the board and CEO of aafaq islamic Finance), Mujtaba Naseem (Vice Chairman) and two members from the Institute of Certified Public Accountants of Pakistan (ICPAP). The advisory council will consist of major organisations and global personalities.

Dr Mahmoud said: “In today’s business setup, relevant working experience and an internationally recognised professional certification will certainly propel future career advancement and personal development. In the Islamic finance sector, the first CPA Islamic Finance certification provides the necessary world-class training to professionals who are seeking to improve their skills in order to become competitive in the local and international arenas. The launching of the programme is in sync with Dubai and the UAE’s ever-expanding business environment, with the Islamic finance industry in particular experiencing exponential growth. This means that the country will see an increased demand for a well-trained, highly qualified workforce. ”

Abdul Jaleel Al-Blouki, Deputy Chairman of aafaq Islamic Finance added: "Our partnership is in line with HH Sheikh Mohammed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces and Chairman of the Abu Dhabi Executive Council directives during the Government Summit held recently in Dubai, where he focused on the importance of education and human development. 

"The launch of this programme comes in line with HH's vision to increase awareness, expand knowledge and development of human capital. The programme is in sync with Dubai and the UAE's ever-expanding business environment, with the Islamic finance industry particularly experiencing exponential growth. This means that the country will see an increased demand for a well-trained, highly qualified workforce. The CPA Islamic Finance certificate provides the necessary world-class training to professionals who are seeking to improve their skills in order to become competitive in the local and international arenas."

This collaboration is aligned with both parties' goals of promoting and developing the Islamic finance sector as well as furthering Arabs' global competitiveness. Aafaq intends to expand its activities in the Islamic finance industry through information, awareness and capacity building through its affiliated subsidiaries, namely the Institute of Finance & Management and the Research & Development Center.

Many Emiratis have already enrolled in the programme offered at ICPAP’s UAE headquarters, which continues to attract growing interest from a fast-expanding Islamic finance industry. The sector is poised to double its assets to US$3.4 trillion by 2018.

“This is one of the unique certificates that will provide the Islamic financial sector with the proper knowledge and expertise. It will provide Islamic finance professionals and practitioners with sound accounting framework from both international financial reporting and shari'ah perspectives. With growth of Islamic finance industry, finance professionals will therefore have to upgrade their knowledge and skills to remain ahead of the competition. The certification aims to address this demand as well as ensure that the Middle East and Asian region will consistently sustain the highest Islamic finance standards,” added Mujtaba. 

Aafaq - Islamic Finance deploys NASDAQ Dubai Murabaha Platform

Aafaq – Islamic Finance, a UAE-based shari'ah-compliant financial institution, completed its first transaction on the NASDAQ Dubai Murabaha Platform in early November. Clients of Aafaq – Islamic Finance and other companies can use the NASDAQ Dubai Murabaha Platform to execute streamlined transactions within minutes. 

Officially launched in April 2014, the platform has completed a total of more than AED21 billion of transactions. It was set up by NASDAQ Dubai jointly with Emirates Islamic and is playing a key role in Dubai’s growth as the capital of the Islamic economy globally.

His Excellency Essa Kazim, Chairman of Dubai Financial Market and Secretary General of Dubai Islamic Economy Development Centre (DIEDC), said: “The expansion of the NASDAQ Dubai Murabaha Platform underlines the continuing success of the initiative launched by His Highness Sheikh Mohammed Bin Rashid Al Maktoum, the Vice President and Prime Minister of the UAE and Ruler of Dubai, to develop Dubai as the global Capital of Islamic Economy, as overseen by His Highness Sheikh Hamdan Bin Mohammed Bin Rashid Al Maktoum, the Crown Prince of Dubai. By effectively serving the clients of Aafaq – Islamic Finance and other companies, the platform will provide growing support for the strengthening of the Islamic finance sector in the UAE.”

Sheikh Faisal Saoud Bin Khalid Alqassimi, Managing Director of Aafaq – Islamic Finance, said: “The NASDAQ Dubai Murabaha platform is a very attractive alternative to many other Islamic financing solutions, which can be subject to unexpected price movements, spreads and delays as well as poor liquidity. We are making use of the platform to offer our clients solutions for a variety of purposes, from personal finance to funds for company expansion.”

The platform makes use of shari'ah-compliant certificates that have been developed for the underlying assets of the financing transactions. Islamic banks, Islamic windows of conventional banks, and Islamic finance companies and their clients can make use of the platform through trading certificates.

Abdul Wahed Al Fahim, Chairman of NASDAQ Dubai, said: “NASDAQ Dubai will build on the growing success of the platform to attract more financial institutions to join it from the UAE and beyond, so that their clients can also benefit from its many advantages. We are committed to further enhancing our Islamic financing infrastructure with the support of all market participants.”

Hamed Ali, Chief Executive of NASDAQ Dubai, said: “The NASDAQ Dubai Murabaha Platform meets the specific requirements of shari’ah-compliant financing within a framework of international capital markets best practice. As a sophisticated and secure financing channel, it is set to cater to an increasing number of customers all over the world.”

Abdulla Al Awar, Chief Executive of DIEDC, said: “Aafaq – Islamic Finance’s decision to join the platform is another positive example of Islamic financial institutions in the UAE taking far-seeing and proactive steps to enhance the services that they offer to clients. This process is rapidly building critical mass in the Islamic financial sector in both quality and quantity.”

Read about the first bank to transact on the NASDAQ Dubai Murabaha Platform here.
Read about aafaq's partnership with MENACORP here.

Aafaq and MENACORP to offer Islamic finance products that leverage UAE stock market

Aafaq - Islamic Finance Company, a UAE-based shari’ah-compliant financial services group and MENACORP, an investment bank in the UAE, have entered into a strategic partnership in order to provide Islamic financing solutions to investors on the DFM, ADX and NASDAQ Dubai with respect to their trading needs on these UAE markets.

Aafaq - Islamic Finance Company provides a wide range of Islamic finance products and services which are approved by the Aafaq Shari’a Board. It offers financial solutions for corporate and retail segments along with other services such as Wages Protection System and Labour Guarantee Issuance. 

Source: aafaq - Islamic Finance Company. The agreement was signed between Sheikh Faisal Bin Saud Al Qasimi, Managing Director of aafaq – Islamic Finance Company, and Fathi Ben Grira, CEO of MENACORP. Dr Mahmoud Abdelaal, CEO, aafaq and Nabil Al Rantisi, MENACORP’s Managing Director-Brokerage, also attended and witnessed the signing ceremony.

In line with strategic growth plans of both companies, the alliance will provide the customers with diversified services by offering them an opportunity to enter the UAE’s finance and trading market.

“Aafaq is delighted to sign this partnership with MENACORP, as evident by the stable economic growth of the UAE, which can be accredited to the wise vision in leadership in addition to the existence of diverse and unique investment opportunities, especially in the financial market and in what these markets have recently envisioned to get upgraded to emerging markets. 

"This strategic alliance falls in line with our expansion strategies and will offer cutting-edge Islamic finance products and services so that customers can take advantage of the UAE’s thriving stock market. We are looking forward to working closely with MENACORP to offer Shari’a-compliant solutions to our customers,” said Sheikh Faisal Bin Saud Al Qasimi, Managing Director of aafaq – Islamic Finance Company.

Fathi Ben Grira, CEO, MENACORP, said: “Most of our clients are GCC-based investors who are attached to the principles edicted by shari'ah law for their financing requirements. The total value of our clients’ portfolio recently crossed AED8.5 billion and most of it is controlled by investors valuing the ethic of Islamic finance, especially for their transactions on the stock market. 

"Our partnership with aafaq – Islamic Finance Company will help us to serve these clients in accordance with their values. This deal is an important milestone for MENACORP as it is in line with our strategy which is to focus on our core business (execution on stock markets) and to rely on a leader such as aafaq – Islamic Finance Company for the financing needs of our clients.”