Asian Islamic financial institutions are attracting more female executives and scholars to fill a shortage of talent, setting a precedent for companies in the Middle East.

Malaysia’s Shariah Advisory Council appointed a second female scholar to its 11-member board in November. Indonesia has six women on its panel of 35 experts, Ma’ruf Amin, chairman of the country’s National Shariah Council, said in an interview Dec. 30. Malaysia’s central bank and the securities commission are both headed by women, while Liza Mohd Noor is chief executive officer at RAM Rating Services Bhd., which provides ratings for Islamic bonds.
“Previously, it was difficult for women to enter the industry; now people have broken that boundary, especially in Malaysia,” Aznan Hasan, associate professor at the Kuala Lumpur-based International Islamic University Malaysia, said in a Dec. 20 interview. “More women are coming in and this is good because we need people.”
Encouraging women to work in Islamic finance will help meet demand for experts in an industry the Islamic Financial Services Board estimates has been growing 20 percent annually since 2000, with assets exceeding $1 trillion. About 50,000 professionals will be needed globally over the next five to seven years to meet demand, Ishaq Bhatti, the director of Melbourne-based La Trobe University’s Islamic banking and finance program, said in a Dec. 10 interview in Kuala Lumpur.
------Cultural Barriers
The lack of prominent female banking executives stems from “history, culture and perceptions of women,” said Nida Raza, senior vice president of capital markets at Unicorn Investment Bank BSC in Manama, Bahrain.
In Saudi Arabia, a Sunni Muslim-majority country where women are required to have a male guardian, about 15 percent of the labor force was female in 2009, according to a report by the Geneva-based International Labor Organization, a United Nations agency.
“Getting a visa to Saudi is really difficult, and even when I’m there I face various challenges,” Noripah Kamso, chief executive officer of Kuala Lumpur-based CIMB-Principal Asset Management Bhd., a unit of CIMB Group Holdings Bhd., the world’s biggest sukuk arranger, said in an interview on Dec. 23. “I was once chased by a Saudi police officer because I entered from the wrong door, and travelling without a male colleague is impossible.”
-------Global Sales
As interest in the industry grows, women, including those from the Middle East, are likely to play a greater role, said Engku Rabiah Adawiah Engku Ali, the first female appointee to Malaysia’s Shariah Advisory Council and an associate professor at the Ahmad Ibrahim Kuliyyah of Laws, International Islamic University Malaysia in Kuala Lumpur.
Global sales of sukuk, which pay returns based on asset flows to comply with the religion’s ban on interest, fell 15 percent in 2010 to $17.1 billion, according to data compiled by Bloomberg. Issuance reached a record $31 billion in 2007.
The difference between the average yield for sukuk in developing nations and the London interbank offered rate has narrowed 178 basis points, or 1.78 percentage point, to 290 last year, according to the HSBC/NASDAQ Dubai US Dollar Sukuk Index. Average yields dropped 252 basis points to 4.74 percent.
(Source: Bloomberg)
Photo: “Getting a visa to Saudi is really difficult, and even when I’m there I face various challenges,” Noripah Kamso, chief executive officer of Kuala Lumpur-based CIMB-Principal Asset Management Bhd., a unit of CIMB Group Holdings Bhd., the world’s biggest sukuk arranger, said in an interview. (Photo: Goh Seng Chong/Bloomberg