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Islamic banking course launched in SA
The Bankseta officially launched its introductory course to Islamic banking late last week, the development of which was a collective effort by members of Bankseta, its Islamic Banking steering committee and members of Shari'ah Financial Consultancy. Bankseta, in support of transformation and celebrating diversity within the financial sector, funds the course.
“Education and awareness are critical to the success. Islamic Banking has been the front runners in assisting the Bankseta in developing unique training tools for future Islamic bankers and thereby cementing the foundation of what we have started,” says Amman Muhammad, MD of Absa Islamic Banking.
The banking sector has shown that there is a considerable need to develop this market segment, which contributes significantly to the sector and that access of products to this niche market could be accelerated if bank staff is appropriately trained in this field. This training is available to all South African banks interested in offering Islamic banking products and will be used to train staff members who are involved in the delivery of Islamic banking products at all levels and especially to the broader Muslim community.
International growth
According to Malaysian banks, the Islamic investment equity funds market is one of the fastest-growing sectors within the Islamic financial system. Currently, there are approximately 100 Islamic equity funds worldwide. The total assets managed through these funds currently exceed US$ 5 billion and is growing by 12-15% per annum.
Despite successes, this market has seen a record of poor marketing as emphasis is on products and not on addressing the needs of investors. Target markets for Islamic funds vary; some cater for their local markets, eg Malaysia and Gulf-based investment funds. Others clearly target the Middle East and Gulf regions, neglecting local markets and have been accused of failing to serve Muslim communities.
“We also see Islamic banking as a potential growth area, which could lead to increased employment opportunities for those with the relevant training and interest. I have been impressed with the level of cooperation we have received from Islamic banks in South Africa during the development of this material. It's been a privilege to see the senior Shari'ah scholars from all the banks working together to ensure that we deliver the best possible product,” says Max Makhubalo, Bankseta CEO.
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