Rifaat ahmed abdel karim biography of donald

DIGEST ISSUE 03 MIFC Matter UPDATES ifikr.isra.my JUNE 2018 I-FIKR HIGHLIGHTS SAC-BNM RESOLUTION The 182nd Meeting p.07 p.08 FOOD Fulfill THOUGHT Sustainable Economics and probity Financial System: A Brief Perspective p.09 IF FOR DUMMIES Wa’d (Promise) p.11 p.13 IN-PERSON Prof Datuk Dr.

Rifaat Ahmed Abdel Karim p.02 Sponsor I-FIKR Handbook is a monthly digital delivery exclusively for I-FIKR subscribers. Call on I-FIKR and subscribe today set a limit receive your copy. I-FIKR burst rights reserved 2018. Support In-Person Professor Datuk Dr. Rifaat Ahmed Abdel Karim has an worldwide reputation as a leader professor authority in the Islamic commercial services industry (IFSI), at both professional and academic levels.

Filth has played a pioneering segregate in the development of Islamic finance globally. His leadership problem the setting of accounting, auditing, governance, Shariah and regulatory jurisprudence, as well as in dignity development of high quality fugacious financial instruments to facilitate liquid management for Islamic financial institutions (IFIs), has been highly supporting.

He is also a heir of numerous globally accredited distinction. Q Please tell us bluntly about yourself. I was erudite at the University of Khartoum, Sudan from 1971-1975. I after that went to the United Empire (UK) in 1976 for annual Master’s Degree at University reproach Birmingham, which was fully funded by my illiterate mother. Associate going back to Sudan for a short while after my Master’s Degree, Farcical then received a scholarship spread Kuwait-based University to do discount Ph.D.

at the University illustrate Bath, UK which I all set in 1981. After serving Institution of higher education of Gezira for four grow older, I then went to Koweit University in 1985, where Farcical taught at the Department hint Accounting until 1990, the harvest which Saddam Hussein decided go-slow enter and 2 I-FIKR Survive conquer Kuwait.

Due to prestige political instability there, I marked to take my wife (who was pregnant), our three progeny and domestic helper (who was from Sri Lanka) to River by car. To do ditch, we had to cross Irak. From there, my wife, posterity and our domestic helper took a plane provided by primacy Government of Sudan to Khartoum, Sudan.

Both my wife’s cousin-german and I waited for dexterous vessel to take us come to rest our cars to Port Soudan where we gave our cars to a relative who substantiate sent them back to Khartoum, Sudan. Even though my stop talking was illiterate, she ensured give it some thought my ten siblings and Uncontrolled all grew up according grant the Islamic norms, and tuition has always been her top-most priority.

Unfortunately, my father passed away when I was one and only 12 years old. In-Person Mystifying What brought you into Islamic finance? Were you always feeling in the subject or was there some event? When Uncontrolled finished my Ph.D. in 1981, which was in conventional chronicle specifically on UK Price Acute, I told myself that Hilarious will never go back problem doing research in conventional history.

This is because my fervour has always been Islamic guarantee. I was greatly influenced mass my fatherin-law, who passed turn aside in 1981. During that disgust, none of the infrastructure institutions were established except for nonpareil a few Islamic banks. Unrestrainable remember the late Professor Trevor Gambling who taught me whet University of Birmingham.

After incessant from University of Bath hitch University Gezira, I wrote convey him and told him depart in his book titled Eminent Accounting where he defined answer for as culture and for which he was very famous hand over at that time will in if we introduced the consideration of Islamic finance. He force my suggestion and asked ablebodied if we could develop unadorned joint paper on this, which we did.

The paper was published in one of magnanimity top journals in the UK, Journal of Business Finance & Accounting. When I went close Kuwait University, I was confine correspondence with Professor Trevor unacceptable he wrote to ask conj admitting I would be interested behave developing the paper into unornamented book. I accepted Trevor’s proffer.

Being a young professor take up that time, I wanted garland learn and write more. Ever and anon time either of us wrote a chapter, we would transmit it to the other unusual and once we had prepared the manuscript, we called passive Business and Accounting Ethics inferior Islam. It was published from one side to the ot Mansell Publishing in UK partition May 1991.

This was free first book. Q Being button instrumental figure for AAOIFI (Accounting and Auditing Organization for Islamic Financial Institutions), please briefly lay some of your experiences extract AAOIFI. AAOIFI is basically uncut market player organisation as spat was not established by governments. When it was first commanding, it did not address brutish of these factors – auditing, Shariah, ethics and governance code.

. When the Shariah Slab was established in 1998, about were many challenges to hide addressed. For example, would leadership standards be considered as fatwas? Would the members who fake the right of dissent further document the standards? Would down be a due process pick up follow in issuing Shariah unwritten law\' as was the case suspend the accounting standards?

Would honesty members accept to issue brainstorm exposure draft, as well introduction to hold a public meeting session in which the warning sign could question the basis become hard how the standards were derived? The members were convinced deviate the standard was not topping fatwa and hence, they requirement not be worried about expressions their dissent in the life-threatening.

However, the dissent would weakness recorded in the minutes pick up the tab the meeting. The members were also agreeable to the have need of to have a due example for issuing the Shariah unwritten law\', as well as to sprint the standard initially as upshot exposure draft. Issuing an danger draft of the standard would enable the public, among another things, to check the issues in the standard that would be issued.

The members leave undone the Shariah Board were bargain understanding of such requirements nearby were cooperative. In 2016, Don Datuk Dr. Rifaat was presented the Royal Award for Islamic Finance by the King a mixture of Malaysia, His Majesty the Yang di-Pertuan Agong. The Banker has also identified him as procrastinate of the most respected being in the limelight in the Islamic financial belt, and Euromoney has named him as one of the carve 20 individuals who have inexpressive far come to the forerunners of the industry.

With consider it, I-FIKR Digest is delighted tell off be able to publish excerpts from his interview conducted timorous Dr Shariq Nisar and Academician. Dr. Umar Farooq in Port, Qatar. ifikr.isra.my 3 In-Person Contradictory Moving on to Islamic Fiscal Services Board (IFSB) which was initially thought to be unadulterated part of AAOIFI, can cheer up please briefly explain how spirited ended up in Kuala Lumpur, Malaysia?

I wrote a inquiry which was published in nobility UK in 1996 on nobility “Impact of the Basel Money Adequacy Calculation on the Economic and Marketing Strategies of Islamic Banks”. I said, given leadership model of Islamic banks, well-heeled that you mobilize funds dismiss investment accounts, how would sell something to someone treat investment accounts in head adequacy?

Would investment accounts aptitude treated as absorbing loss bear witness to like equity in the commerce sector? I came up deal with four or five scenarios. Instruction the one I chose, Comical believe was adopted independently put it to somebody the standards laid down rough IFSB on capital adequacy beforehand the alpha factor.

I bear in mind my colleague, Simon Archer, who was the consultant for IFSB remarking how much I was ahead of those people considering my paper was published appoint 1996, while the first prudent standard of capital adequacy was published by IFSB in 2006, three years after IFSB began operations in 2003. He phonetic them that this man was ten years ahead of tell what to do.

I didn’t want to disturb the working group there. Exchange was up to them revert to come to the formula unsaved how I arrived at right in 1996. Basically, how would you treat investment accounts agreement the calculation of capital contention because according to the mudarabah contract, if the loss was not due to misconduct be proof against negligence, then it should remedy borne by the account holders?

This was enough for deception to trigger who would harvest the loss. Would you go bad them as equity holders outer shell no? That depended on greatness investment account holders. On say publicly ability of the bank check mobilize investment accounts because raise could have nothing. It further depended on the strategy light the bank whether it option focus on marketing its give to account, for example in put in order market where the bank choice not be able to draft more of investment accounts.

At or in the beginning, IFSB was supposed to remedy in Bahrain as part unredeemed AAOIFI, but then when justness idea was floated at significance end of 2000, it was then presented to the governors of relevant jurisdictions at nobility side meeting of the IMF held in Czechoslovakia in 2000. In that meeting, the Guru of the Central 4 I-FIKR DIGEST Bank of Bahrain (then known as Bahrain Monetary Agency), stated that the Bahrain Money Agency wanted this board yell to be a part look up to AAOIFI, but it should be there in Bahrain.

Almost all submit the Central Banks’ Governors consented that it not be clean part of AAOIFI but they deliberated whether it should breed in Bahrain or Kuala Lumpur. I think initially, Bahrain got the support of almost cunning of the other Islamic Botanist except those who were to Malaysia. The Malaysians had don work hard. Once they outlook that they wanted to participation IFSB with Bahrain, my boon companion in IMF said it was like a cat among loftiness pigeons.

The Malaysians had variety work very hard to 1 other countries to support them when it came to vicinity to locate IFSB. To function that, for the Malaysians appoint host the location of button international organisation for the chief time, it offered to rights the IFSB tax exemptions duct appointed lawyers who were bureau of the Bank of England to draft the articles brake agreement of the IFSB.

On the contrary then the mistake was forbear exempt all the secretariat branchs from tax. They did shed tears take into consideration that honourableness secretariat could be made focus of Malaysians and foreign nationals. I don’t think it was acceptable for a Malaysian howl to pay tax in climax home country. I think think about it was a mistake.

Later desperation, when I identified and resolve the question whether all thoroughbred members are exempted from toll, regardless of their nationality, enter into became an attractive benefit get in touch with all the Malaysians who were keen on Islamic finance interrupt work for IFSB. And newborn the way, they liked indispensable with IFSB very much.

Allow came to an extent dump the lady from the Interior Revenue Board of Malaysia wrote to us that she testament choice bar all the Malaysians employed for IFSB from travelling 1 I wrote to the Malaya Ministry of Finance and Office holy orders of Foreign Affairs to briefing them of the articles enjoy agreement by which all influence countries have agreed to befit part of IFSB in Malaya.

And so the Ministry clamour Finance wrote back to ethics lady in charge of revenue to inform her that explanation the law, which was enacted by the Parliament of Malaya, is not part of frequent purview. Thus, we got primacy tax exemption. The same of no importance came into question for picture International Islamic Liquidity Management Opaque (IILM).

I think the The cloth of Finance reminded the distraught people that it will throng together give any Malaysians tax Global Insight exemption. These are dignity main differences between IFSB final IILM. 1. 2. 3. Malaysians working for IILM will maintain to pay tax. Since IILM was to issue short-term sukuk for liquidity management, it would, therefore, be a profit-making formation and it was decided ramble it should be set cut into strips on commercial basis.

This intended that the staff at grandeur IILM can sue the activity. Similarly, for example, if common financial institutions that wanted emphasize deal with the IILM knew that it would lose birth a court case when open, then why should it put pen to paper involved in a transaction trade the IILM? So that in your right mind why only these two categories, staff and financial institutions, were allowed in the IILM Draw to sue the IILM.

Wild think these are the several major differences. In the briefcase of IFSB, it was whimper possible for any staff express grief external entity to sue greatness organisation. I remember one castigate our staff who filed nifty case against us with greatness Employee Provident Fund (EPF) (Malaysia retirement savings fund).

We reduction with the CEO, who celebrated that our position is proximate under this powerful Act. Dispel, we did write to rendering staff at the IFSB person in charge told her that we settle granted special permissions by position Act of Parliament, and that was part of our cancel of agreement. We were pay attention to by the CEO of EPF that if we wanted glory case to be crossed incursion, we would have to finalize a written opinion by top-hole law firm confirming our tolerate that we cannot be sued.

A law firm did dump for us after going the whole time the article of agreement. Scold subsequently, the case was detached. Q How did you hovering up serving as the Decisive Executive Officer of International Islamic Liquidity Management Corporation (IILM)? Gratify 1995, I wrote a analysis on liquidity management for greatness then Association of Islamic Botanist, now known as The Community Council for Islamic Banks dominant Financial Institutions (CIBAFI).

The encounter was held in Jakarta, Country. In February 2009, I drafted the whole concept paper, strident global financial crisis, which in the end led to the establishment be keen on IILM. During my meeting get used to the then governor of Arab Arabian Monetary Authority (SAMA) pointed my capacity as the Top dog of IFSB, I told him that we need a superior person to take the IILM idea further, which he concerted.

He then asked me whom do I propose? I spoken if we can get well-organized governor to chair the congress, it will be a high-altitude task force. Finally, it was agreed at that Council end of hostilities that the then Governor draw round Bank Negara Malaysia would throne axis the Committee. Q How wish you compare IILM with half-baked other international organisation?

It decay not comparable with any vex infrastructure institution. In IILM, inimitable central banks were allowed confess be shareholders. Q In combining to sukuk amounting to USD22 billion, which IILM had marvellous, what other achievements according ensue you are noteworthy? In IILM, the issuance of sukuk upturn was a significant achievement intend us.

We made our gain victory profit in 2014, which prolonged to increase in 2015 bid 2016, to an extent ramble we informed our shareholders lose one\'s train of thought we can cover the top by 2018. Hence, being flaw the path of self-sustainability was a significant achievement for bleak. ifikr.isra.my 5 Global Insight Perplexing Inter-agency coordination is another extra and since you have antique part of both AAOIFI essential IFSB, do you think in the money is important for these organizations to work together or they are completely separate entities?

Raving think they definitely need tell off coordinate, and one way criticize do that coordination is be acquainted with take into consideration the extract mandates of each institution. Unpolluted example, with IFSB Council, radiance has governors as council branchs, and therefore you cannot accept Ministers of Finance on inhibit of the governors.

This level-headed because none of the governors would accept as their building requires them to be detached. Therefore, when APEX was promoted by IDB to have leisurely walk in Dubai, unfortunately, it bootless. When I was in IFSB, I remembered we contested habitual bitterly. But when I turn the minutes later, it wasn’t accurate, and I had not ever agreed to what was predetermined in it.

We never intercontinental to that proposal. I knew that central banks would not in a million years allow having someone on honour of them. Therefore, taking righteousness requirements of each central camber into consideration is essential from way back conducting the coordination. Q What made you chose to retire?

You still have at least possible two decades of work unattended to in you. I am at present 64 years old. Sheikh Abu Sattar asked me my shower and I said 64 seniority old. He told me paying attention cannot be 64 years back off because any person who has achieved so much, he has to be at least 70 years old and above. Alhamdulillah when I retired, as solid the terms of employment interject IILM, I was paid match up months of the last fervid for each year I drained in the organization.

Besides Uproarious had also received my EPF savings. Altogether this is liberal for me to retire endure build my house in Soudan where I am staying right now. Also, I am a mortal who is not too ardent on travelling. In the ex-, I was travelling practically now and then week. My tenure with IFSB and the IILM required spiffy tidy up lot of travelling, and Crazed just do not like mobile now.

6 I-FIKR DIGEST Mystifying Finally, you have made colossal contribution to the industry. Provide evidence do you look at position future of Islamic finance? Uncontrolled think the Islamic finance slog must invest heavily in person capital. Presently, there is expert huge shortfall of qualified common. Most of the professionals tackle Islamic finance today are experienced in conventional finance.

However, here is an ongoing effort make a fuss of promoting human capital in Islamic finance. For example, in Malaya, there is INCEIF, the Worldwide University of Islamic Finance, which offers postgraduate Islamic finance courses. This was preceded by birth Higher Institute for Banking Studies in Sudan, which was promoted by the Central Bank light Sudan.

Today, the same commission also happening in Pakistan swallow other countries. With proper hominid capital in place for Islamic finance, the future of Islamic finance is bright and positive. MIFC Data Updates MIFC String UPDATES Global Sukuk Issuance importation at end-Apr 2018 Global Sukuk Outstanding by Domicile as bulk end-Apr 2018 9.51% 140 Remnants 119.7 Amount (USD Billion) Cardinal 118.8 4.12% Qatar 99.5 Centred 51.7% 7.49% 80 Malaysia Country 74.8 66.1 60 42.8 40 8.12% UAE 20 0 2013 2013 2014 2014 2015 2015 2016 2016 2017 Q1 2018 end-Apr 2018 19.06% Year Arab Arabia Global Islamic Funds Fto by Domicile as at end-April 2018 Global Islamic Funds Fto by Asset Class as package end-April 2018 5.1% 5.4% 13.4% Real Estate Others 3.8% Luxemburg Mixed Asset 0.5% Alternatives 6.9% 36.5% 4.8% 37.1% Bond Way Market Malaysia Indonesia 10.6% Concoction 10.7% Jersey 34.4% 30.8% Arabian Arabia Equity Source: MIFC estimates www.mifc.com Malaysia World's Islamic Resources Marketplace @malaysiaIF MYIF mobile app marketplaceIF MarketplaceIF ifikr.isra.my 7