What is Islamic Finance?
Islamic Finance is a system of banking and financing that is consistent with the principles of Islamic law (Shariah). Amongst other principles of Shariah, this law prohibits the payment of interest fees for lending money.
Why would students be interested in this field of study?
Islamic banking and finance is a unique and fast-developing area and has become a force to be reckoned with in the global economic scenario. Malaysia has a national agenda of making the country an International Islamic Financial Centre. The Malaysian Islamic financial sector is seen as one of the most progressive and attractive in the world. To create more Islamic Finance professionals, Bank Negara has setup world's first university in Islamic Finance (INCEIF) and it offers postgraduate studies only.
This means that graduates can rest assured that employment opportunities in the Islamic job market are abundant. They will be able to chart a long and promising career.
Is a career in Islamic Finance suitable for me? What kind of skills and characteristics should a person working in Islamic Finance have?
A person best suited to this field should have an analytical mind. He or she should be someone who is able to practice sound ethical behaviour, as in Islamic Finance, service is coupled with ethical and religious concerns. The nature of the job means that you will meet people from different backgrounds and with different needs, so it is also important to be a people-person.
Is Islamic Finance only for Muslims?
Absolutely not, anyone can become an Islamic Finance specialist.
How long do these courses take to complete?
A bachelor’s degree programme usually takes 3 years to complete. A postgraduate programme would usually take 1 year.
What kind of qualifications do I need to enrol in one of these courses?
To qualify for the bachelor’s degree, you will need to have completed a pre-university course after your SPM/O-Levels. This can either be STPM, A-Levels or equivalent or a 1-year foundation course.
What kind of subjects will I be taking?
You will be introduced to subjects like finance, banking, economics and law, seen from an Islamic perspective.
Is having an undergraduate degree sufficient to enable me to work in this field?
Yes. A bachelor’s degree is the most basic qualification that will allow you to work in Islamic Finance. If you already have a degree that does not incorporate Islamic finance, it is still possible to equip yourself with the relevant Shariah knowledge by taking a course that will lead to a professional certification.
What are my academic (postgraduate) options after completing one of these courses?
If you choose to specialise in Islamic banking and finance, you will cover subjects that will put you on the path to qualify for the Chartered Islamic Finance Professional (CIFP) certificate.
If you specialise in Islamic financial planning, you will be on the path to the Islamic Financial Planner (IFP) certification programme. These two certifications are provided by The International Centre for Education in Islamic Finance (INCEIF) and will certify you as a professional and expert in your chosen field.
Another option is to take the MBA in Global Islamic Finance.
What are my career options and prospects?
Those with the CIFP certification can go into areas of banking such as wealth management, takaful, Islamic structured products, regulation and supervision, research and development, and analysis and consultancy.
Those with an IFP certification can become professionals serving the retail segment of the Islamic financial market, as managers for retail or personal finance, wealth and estate planners.
If you are enterprising enough, you can become takaful and unit trusts agents. Most graduates go into banking, working in the Islamic arms of local banks, providing Islamic products and services to client. Graduates can go on to become executives, managers, advisors or expert consultants.
Currently, there are not many experts in this field, so there is a wide opportunity for you to be at the top of the game, and become truly successful in your career. An area of Islamic finance that currently does not have enough qualified people is fund and asset management. This is not only in Malaysia, but also globally, so there are many opportunities here.
How much can a person earn in this field?
As with all professions, you have to start small, but within two years, you could be earning in a range of RM3,000 to RM6,000. A person at the top level can have a monthly salary ranging from RM20,000 to even over RM100,000.
What are some of the challenges of working in Islamic finance?
The Islamic financial system is still developing and is not yet widely understood globally. You will have to be very well equipped with knowledge and tact to create awareness and educate potential clients from diverse ethnic, religious and educational backgrounds about Islamic finance.
What are some of the benefits and advantages of working in Islamic finance?
There are not many experts in the field, so career opportunities abound. The biggest advantage is that there are a huge amount of opportunities for you to progress to the top of the came and become truly successful in your career.
