Islamic Finance Industry Still Facing Shortages of Scholars, Trained Professionals

The Islamic finance industry has grown rapidly over the past few decades, evolving from a niche market into a global phenomenon with assets exceeding $3 trillion. Despite its remarkable growth, the industry continues to struggle with a critical issue: a shortage of qualified scholars and trained professionals. This talent gap poses a significant challenge to the sustainability and further expansion of the sector.

This article explores the reasons behind the shortage, its impact on the industry, and potential solutions to address the gap. We will also discuss the opportunities this situation presents for aspiring professionals and the steps needed to build a more robust talent pipeline in Islamic finance.

Current State of the Islamic Finance Industry

Islamic finance refers to financial activities that comply with Shariah (Islamic law), which prohibits interest (riba), excessive uncertainty (gharar), and investments in businesses considered haram (forbidden), such as alcohol and gambling. The industry encompasses various segments, including Islamic banking, Takaful (Islamic insurance), Sukuk (Islamic bonds), and Islamic funds.

The sector’s assets are expected to grow significantly, driven by the increasing demand for ethical finance and the expansion of Islamic finance markets in countries like Malaysia, Saudi Arabia, and the United Arab Emirates. However, to sustain this growth, the industry requires a steady supply of scholars and professionals who can navigate the complexities of Sharia-compliant finance. Read more>>

Lifting the Bottom Billion: Will It Work This Time?

Imagine being part of a billion people stuck in a cycle of extreme poverty—unable to break free due to war, corruption, lack of education, and isolation from global markets. These individuals make up what economist Paul Collier famously termed the “Bottom Billion.” Despite countless international efforts to address their struggles, many remain trapped in some of the most challenging conditions on earth, particularly in sub-Saharan Africa. With new strategies and technologies emerging, the big question is: Will it work this time? In this article, we’ll dive into the latest global initiatives and the hurdles still standing in the way of lifting the Bottom Billion out of poverty once and for all.

Understanding the Bottom Billion Crisis

For decades, poverty reduction efforts have centered on providing aid, improving infrastructure, and addressing public health issues. However, the situation for the Bottom Billion is complex and often resistant to traditional development strategies. According to Collier, these individuals are caught in one or more of four traps: conflict, natural resource dependence, landlocked countries with bad neighbors, and poor governance. These traps create cyclical poverty that is difficult to escape.

Recent data shows that while global poverty rates have decreased—thanks to economic growth in places like China and India—the situation for the Bottom Billion remains unchanged in many regions. Sub-Saharan Africa, for instance, continues to struggle with high poverty rates, despite decades of international aid. The challenge is not just about money; it’s about addressing the root causes that keep these populations poor. Read more>>

The Pentagon’s THAAD Deployment in Israel: A Signal to Iran and the Question of Global Double Standards

By Baba Yunus Muhammad

The Pentagon’s decision to bolster Israel’s air defense systems with a Terminal High Altitude Area Defense (THAAD) system, supported by 100 U.S. troops to operate it, sends a powerful message. The THAAD is designed to intercept ballistic missiles, with Iran clearly in the crosshairs. This deployment is an escalation, illustrating the United States’ unwavering support for Israel in its regional confrontations, particularly with Iran. But it also raises significant questions: Who stands with Iran in this looming confrontation? And does America’s uncritical backing of Israel expose its double standards on human rights and international law?

America’s Stance: Double Standards and Duplicity

The United States’ support for Israel has long been criticized as riddled with hypocrisy. While Washington postures itself as a global advocate for democracy and human rights, it continues to supply the arms that fuel Israel’s military machine, which has been implicated in the deaths of thousands of innocent Palestinian women, children, the elderly, and the infirm. The moral outrage America projects against other regimes, particularly in the Muslim world, is conspicuously absent when it comes to Israel’s transgressions. This duplicity reflects a clear bias that undermines America’s credibility as a global arbiter of justice. Read more>>

Ghana is Planning its First Nuclear Energy Plant: what’s Behind the Decision

Ghana is struggling to provide affordable and consistent electricity to its citizens. The country produces excess electricity but the supply isn’t reliable. This conundrum has led to the country’s decision to build a nuclear power plant. Nuclear scientist Seth Kofi Debrah discusses the risks – and opportunities – for Ghana.

The country’s industrialisation ambitions, fuel constraints, limited resources, climate conditions and international commitments to climate change mitigation are among the factors driving Ghana to include nuclear power in the energy mix.

Nuclear power is available all year round, making it reliable. The nuclear power plant is expected to operate as a baseload plant (the production facility used to meet some or all of an area’s continuous energy demand), with a capacity factor of about 92%. A conventional nuclear power plant typically operates for 92% of a calendar year as compared to 54% for natural gas power plants, 24% for solar and 34% for wind power plants. Read more>>

UAE Beef Imports from Brazil Triple

By our Special Correspondent

In a noteworthy shift in the global beef market, the United Arab Emirates (UAE) has seen a remarkable surge in beef imports from Brazil. This dramatic increase has elevated the UAE from fifth to third place among Brazil’s top beef purchasers in just one year. The latest statistics reveal an astonishing 212% rise in beef imports, underscoring the strengthening and increasingly pivotal trade relationship between the two countries.

UAE Beef Imports: A Remarkable Increase

From January to July 2024, the UAE imported a substantial 106,480 tonnes of beef from Brazil. This marks a considerable rise from the 34,120 tonnes imported during the same period in 2023. This 212% increase underscores a robust demand for Brazilian beef in the UAE and reflects a broader trend of growing meat consumption in the region. The revenue generated from these imports also saw a significant increase, reaching USD 484.8 million, compared to USD 152.1 million during the first seven months of 2023. The average price per tonne of beef imported by the UAE was USD 4,550 this year, up slightly from USD 4,460 last year. Read more>>

Big Call on Interest Rates at Jackson Hole will Echo Around the World

The annual economic symposium in Jackson Hole, Wyoming, is a snooty affair even by the standards of the financial “masters of the universe”. Attendance is “limited” to about 120 Federal Reserve officials, central bankers, financial professionals and academics. Journalists are “selected”, expected to pay (horror!) for the privilege of an invitation, and are not allowed to “overwhelm or influence the proceedings”.

The meeting is quirkily held under the auspices of the Federal Reserve Bank of Kansas City, whose officials were apparently keen on fly fishing in mountain lakes to accompany their financial deliberations when the event was first held there in 1982.

In a normal year in the Rocky Mountain resort where it is staged it is all “gas at high altitude, which tends to cause flatulence”, as a participant once described it to me. (I’ve never been lucky enough to be “selected”.)

But 2024 is not a normal year. It is a US presidential election year, and the economics and finances of America will be under the microscope as voters weigh up Donald Trump versus Kamala Harris in November. Just as significantly, this year’s symposium comes at a crucial time for US and global financial markets. Read More>>

The Collapse of SVB: A Contagion Risk for the Next Financial Crisis?

By Syed Zain Abbas Rizvi

The Great Recession seems like an eternity in the past. As an economic scholar, I didn’t even witness the financial meltdown up close but read about the absolute chaos emanating from the noughties in books and academic entries. Over the course of the last decade, I am sure I wasn’t the only one used to the regulatory guardrails introduced in the wake of the economic collapse. It has been somewhat reassuring that the world would not witness such broad-based economic disruption again or that it would be at least relatively deftly handled before it gets out of hand.

The recent collapse of the Silicon Valley Bank (SVB) dares to question that sentiment of reassurance. And the timing could not be more consequential.

The failure of SVB has sent shockwaves through the financial community, with some analysts drawing parallels between the bank’s downfall and the 2008 financial crisis. SVB was a well-capitalized institution seeking to raise funds, but a panic induced by the very venture capital community it served and nurtured ended its 40-year run within 48 hours.

Regulators shuttered SVB last Friday and seized its deposits in the most significant banking failure in the United States since Washington Mutual went bust in 2008 – and the second-largest ever. SVB was ranked the 16th biggest bank in America at the end of last year, with about $209 billion in assets.

The roots of the SVB collapse stem from dislocations spurred by higher rates. As start-up clients withdrew deposits to keep their companies afloat in a chilly environment for IPOs and private fundraising, SVB found itself short on capital. Read more>>

Saturna Unveils Shariah-Compliant Investment Platform for Digital Investors

Saturna Sdn Bhd, a Shariah-compliant financial services company, today (9 March) officially launched its digital platform to help investors grow their wealth ethically and securely.

The online tool allows individuals to start their investment journey with just a few clicks, guided by Saturna’s deep expertise in the world of Islamic finance. Unlike other offerings currently available in the market, Saturna takes an investor-friendly approach by charging no sales or redemption fees and no hidden charges. Potential investors can also enjoy flexibility as Saturna’s funds have no minimum holding period.

“Our new online platform is designed to be simple and secure for a seamless user experience,” said Shahariah Binti Shaharudin, President of Saturna Sdn Bhd. “It is accessible enough for anyone to start investing in Shariah-compliant solutions immediately, regardless of their experience or investment budget.”

The launch of Saturna’s digital platform was officiated by Ruslena Ramli, Director of Digital Finance and Islamic Digital Economy, Malaysia Digital Economy Corporation (MDEC), who expressed her hope that more organizations in the Islamic finance space will adopt innovative solutions to further grow the industry. “With this online platform, Saturna has led the way in making Islamic-based investment opportunities available to a wider audience, allowing more people to benefit from the wealth of expertise they have to offer,” said Ruslena.

In addition to Islamic principles, Saturna’s funds also comply with global environmental, social, and governance (ESG) standards, investing in companies with socially responsible and environmentally friendly business practices or products. Read more>>

From Japan to the World: How Halal Wagyu Beef is Making its Mark

By our Special Correspondent

Halal wagyu beef is a premium meat gaining popularity worldwide due to its unique flavor, tenderness, and high quality. It is a type of beef that is produced according to halal standards, which means that it is slaughtered in a way that is humane and follows Islamic dietary laws. Halal wagyu beef has become particularly popular in Muslim-majority countries, with a growing demand for high-quality halal meat.

The origins of wagyu beef can be traced back to Japan, where it has been raised for over 200 years. The word “wagyu” literally translates to “Japanese cow” and refers to four breeds of Japanese native to Japan: Japanese Black, Japanese Brown, Japanese Shorthorn, and Japanese Polled. These breeds are known for their marbling and fat distribution throughout the muscle tissue. The marbling gives wagyu beef a unique flavor and tenderness, making it a highly sought-after meat.

Halal Wagyu beef is a premium product produced following Islamic dietary laws. Wagyu beef comes from a specific breed of Japanese cattle known for its high-quality marbling and tenderness. At the same time, halal refers to any permissible food or drink according to Islamic law. Halal Wagyu beef is produced by raising cattle following Islamic principles and slaughtering them in a specific manner.

The significance of halal Wagyu beef lies in its cultural and religious importance to Muslims worldwide. Muslims make up a significant portion of the global population and have specific dietary requirements that must be met for food to be considered halal. Halal Wagyu beef offers a premium beef product that meets these requirements and is enjoyed by Muslims worldwide.

The process of producing halal Wagyu beef involves several steps to ensure that the meat is halal. First, the cattle used to make the beef must be raised following Islamic principles. This includes providing them with adequate food, water, and living conditions. The animals must also be treated with care and respect. Read more>>

Africa Islamic Economic Foundation, Saylor Academy Partner to Leverage Free Education for Sustainable Skill Development

Africa Islamic Economic Foundation (AFRIEF) is very pleased to announce a new partnership with Saylor Academy, to provide flexible, affordable learning opportunities for AFRIIEF’s communities and those interested in joining its programs. As part of AFRIIEF’s mission to support human capital development across the African continent, learners will be able to earn certificates in key career skills (such as Decision-Making, Leadership, technology entrepreneurship and others) from Saylor Academy’s catalog of free courses.

AFRIIEF and Saylor Academy both recognize that learners, such as those served by AFRIIEF’s programs, lead increasingly busy and complex lives. They require flexible education options to balance skill development with work and family demands. This partnership allows students to develop skills that are in-demand now for free, and will help them become even more competitive once they enter the marketplace.

“This collaboration marks an exciting chapter for the Africa Islamic Economic Foundation (AFRIEF) as it will leverage on Saylor Academy’s rich experience, Global network and strength to propel Africa’s rapid economic and social development” states Baba Yunus Muhammad, President of AFRIEF. “We believe that the two organizations have complementary capabilities and we are very excited at the opportunity of combining these to create strong synergies in both career and talent development that will not only facilitate, but hasten our movement towards our goal of increased economic and career opportunities for Africans everywhere.”

“The partnership between AFRIEF and Saylor Academy provides access to affordable and flexible learning opportunities to support skill development across the African continent,” says Jeff Davidson, Executive Director of Saylor Academy. “AFRIEF’s human capital development efforts align well with Saylor’s mission of providing access to learners everywhere.” Read more>>