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Islamic finance expertise will help city stay ahead

13/09/07

Developing a deeper understanding of Islamic finance is important in helping the City of London retain its role as a major financial hub explains David Bowden, Managing Director of BPP Professional Education’s Financial Services Faculty.

BPP is launching a training course towards the Islamic Finance Qualification so city workers can boost their Sharia’a law know-how. The new IFQ, offered by the UK Securities and Investment Institute, is the first of its type in the world. The qualification is globally recognised and aimed at existing financial advisers and city workers, as well as individuals seeking a career in the Islamic finance sector. 

The industry

The Islamic finance industry is young and experiencing significant growth of between 15% and 20% per annum, far outweighing the rate of growth in the conventional finance industry.  Experts are even predicting that it could compete in size with the traditional finance sector in years to come. Rating agency Standard & Poor's estimates the total size of the market for Islamic financial products across the globe at about $400 billion in 2006.

Islamic finance in the UK

UK banks have been quick to cash in on the growth in Islamic finance, offering mortgages, current accounts and student accounts which comply with Sharia’a law. However, the market in Britain is much wider than this. Kitty Ushher, Economic Secretary to the treasury, revealed on 16 August 2007 that two of the largest Sukuk (Islamic equivalent to bonds) issued in the first half of 2007 were listed in London. Gordon Brown has recently called for Britain to become the international centre of Islamic finance, so there is clear support from the top government levels to grow this sector in Britain, bigger than anywhere else in the globe.

Islamic finance in a nutshell

Under Sharia'a Islamic law, making money from money, such as charging interest, is usury, and therefore not permitted. Wealth should be generated only through legitimate trade and investment in assets. Investment in companies involved with alcohol, gambling, tobacco and pornography is strictly prohibited.

Course structure

BPP is offering a two-day classroom training course towards this qualification starting on 26 November 2007. The course is priced at just £577.20, with the two days tuition and all study material included. The course will be taught by Dr Natalie Schoon CFA, a leading expert in Islamic finance.

Dr Natalie Schoon CFA

Dr Natalie Schoon CFA currently works as Head of Product Management at Bank of London and the Middle East Plc (BLME) - a standalone, wholesale, Sharia’a-compliant bank based in the City of London, launched on 9 July 2007. Natalie has been working for international financial organisations since the start of her career. She holds a PhD in Residual Income Models and the Valuation of Conventional and Islamic Banks. Natalie began her career in Islamic finance in the mid 1990s while working in Bahrain, Kuwait and Dubai.

About the exam

The qualification is examined in the UK by the Securities & Investment Institute. The examination is carried out in English via Computer Based Testing (CBT), with delegates given two hours to complete 100 multiple choice questions where the pass mark is 70%. Delegates wishing to take this exam should expect to complete approximately 100 hours of study after completing the classroom course before taking the examination.

Early interest

The early interest for this qualification has come from both individuals and firms. Many firms in the City of London wishing to cater for the rapidly growing Islamic finance market are having to consider this qualification in order to give their employees the basic skills that they need in this area. This ranges from large household names in the City that are looking to go into this market to more specialised Sharia’a compliant banks. The demand from individuals is expected to come from those looking to work in this area or wanting to set their CV's apart with a completely new and unique qualification.