Islamic Finance: currently 3 jobs.The latest job was posted on 14 Feb 19.
The same fundamental principles that govern everyday activities of the Islamic communities also influence the manner of any financial investment Islamic investors choose to make. It is up to those within Islamic finance jobs to ensure all financial services offered stand up to these high standards and provide a positive and ethical return to its investors.
The Importance of Sharia
Sharia is the law by which all Muslims live and all Islamic financial services must be Sharia compliant.
In its most basic form, this means no form of Islamic investment should produce interest and any retail service or investment opportunity that does so would not be permissible.
Furthermore, Sharia dictates the type of industries permissible for investment and any services related to alcohol, gambling, tobacco, pornography and pork are prohibited.
So, an equity portfolio manager working within Islamic finance would have to ensure that every investment opportunity has been clearly vetted. Not only to ensure that the investments are Sharia compliant, but that they are also not linked to or working with any corporation that operates outside this law.
Islamic Products – Sukuk and Takaful
The Islamic financial certificate, the Sukuk, is the equivalent of a standard bond, yet it is not considered a loan. Instead it is an opportunity to share in an asset that may generate future cash flows. Once issued, many Sukuks are listed on recognised stock exchanges and become tradable.
In a similar way, Takaful is the Islamic equivalent of insurance where participants pool their funds into a system which guarantees to pay out on loss or damage, in return for premiums.
Opportunities within Islamic Finance
Institutions wishing to provide Islamic finance services are required to employ the consultancy services of Sharia scholars. These religious scholars will often have trained and practice in the Middle and Far East in places like Saudi Arabia and Malaysia.
Firms wanting to create Islamic finance products will have to create and design the products in a way that will satisfy the Sharia scholars before they can be successfully marketed to Muslim investors. Obviously, those working within the firms will need to combine financial services skills with an awareness of what is, and is not, acceptable under Sharia law.
With its increasing popularity, opportunities in Islamic finance have become available within all financial services. And for those that are willing to work within Islamic law, opportunities open up all over the world.