The vision behind launching ISFIRE was to bring out a publication that should serve as something similar to HBR for Islamic finance, and I am happy to report that we are inching towards our goal. In a period of three years, ISFIRE has emerged as one of the most trusted publications in Islamic banking and finance (IBF). While a number of publications have gone out of print in the last three years, ISFIRE continues to grow with the industry. It is now the only print magazine being published in London. With an estimated size of the industry of nearly US$2 trillion, our aim is to make ISFIRE as the top publication covering all aspects of IBF. Incidentally, this is the last issue of Volume 4 (2014); so we would like to bid goodbye to our readers, with good wishes for 2015.
This issue of ISFIRE brings to you a number of stories and reports but perhaps the most interesting one is an analysis of trust in IBF. Our special report on the most trusted and least trusted brands in IBF reveals a story. While there has in the recent past been a move in favour of creating the so-called neutral brands in IBF by dropping the word “Islamic” from the names of Islamic banks, our analysis suggests that the most trusted Islamic banks are the ones set up as full-fledged Islamic banks and not as part of the conventional banking groups. This conclusion holds both for separately licensed Islamic banks or separate subsidiaries – separate legal entities but embedded within the conventional business of mainstream banks.
There are two other related pieces on risk and trust. Dr Nasser Saidi asserts that the recent financial crisis shattered people’s trust in banks and that they are looking for a new banking model that can be trusted more. He sees an opportunity for Islamic banking to present an alternative, which unfortunately is proving to be a missed opportunity by different stakeholders in the Islamic financial services industry. Mujtaba Khalid’s article on operational risk management in IBF is a continuation of the focus on trust and risk. Within operational risk, reputational risk is a major concern, which is directly related with the notion of trust.
This was in fact topic of our fourth Islamic Finance Access Programme in Pakistan (IFAP-PAK4), which Edbiz Consulting held at COMSATS Institute of Information Technology Lahore. An IFAP Report covers the event that was attended by a large number of bankers from around the Lahore region.
There are two interviews included in this issue, which the readers will find educational as well as inspiring. Dato’ Adnan Alias, CEO of IBFIM, shares with us the crucial role his organisation is playing in developing the required talent for the Islamic financial services industry. He is certainly an inspirational personality, who is revered by his staff.
His interview suggests that he believes in taking his employees on board before making any decisions. This consultative approach makes him an effective manager and leader.
Another interview, that of Sheikh Abdelkader Amor, CEO of Al Maali Consulting Group, is also included in this issue. This issue’s Personality guest is Mr Issam Al Tiwari, Chairman of Rasameel Group, Kuwait. In some ways, this issue is a special edition on Global Islamic Finance Awards (GIFA) that were held in Dubai this year.
There is an extensive coverage of the event, with a lot of pictures and details of the winning institutions and individuals. GIFA 2014 has proven to be the biggest and most successful of the four GIFA ceremonies held so far. We congratulate all the winners, especially His Excellency Nursultan Nazarbayev, President of Kazakhstan, who became our fourth GIFA Laureate this year. We also extend our special congratulations to His Excellency Najib Razak, Prime Minister of Malaysia, for receiving Global Islamic Finance Leadership Awards 2014 (Country Category) on behalf of Malaysia.
Patrick Mahdi discusses what is wrong with the Western capitalistic system and the role of fiat money therein. It is an interesting article, which must be read in conjunction with Rizwan Rahman’s brief article on the topic of gold money. My own Pause for Thought in this issue is on the issue of money and inflation. These three pieces should give a balanced view on the topic to the readers.
Apple’s success has been widely discussed in the world, including in IBF. This issue have a special focus on the treatment of entertainment in IBF, with a special focus on Apple’s iTune business. This issue is relevant to other companies running social media platforms, e.g., Twitter and Facebook etc.
Dr Mashitoh Mahamood is our new contributor who wrote an article on the Awqaf properties in Malaysia.
Overall, the readers must find this issue of ISFIRE sufficiently diverse in contents and much improved in design and layout.
