Two years ago, I was appointed Chairman of Noor Bank, and I have come to understand how deeply the financial industry impacts our beloved nation and how important Islamic finance is to our future. Drawing upon intrinsic strengths, Islamic finance is the fuel to propel our nation towards even greater accomplishments.
This has been underlined by His Highness Shaikh Mohammad Bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, in his determination to establish Dubai as the capital of the global Islamic economy.
2013 was an important year for Dubai, Islamic finance and the institution for which I serve as chairman, Noor Bank. The year saw Dubai achieve significant milestones, and my own bank set records in every critical area of its business. Since its creation in 2008 by Royal decree, Noor Bank’s mission has been intrinsically linked with Dubai’s vision. Today, Dubai and Islamic finance are at a defining moment on an extraordinary future growth path.
I have been privileged to experience a lifetime education in business and leadership by listening to my fellow board members, a select group of highly experienced individuals who have been instrumental in transforming Dubai into a 21st century global city. I would like to share with you five ideas that I believe are critical to Islamic finance and the life of our nation.
Financial strength
There are times when difficult decisions need to be taken to protect and enhance the financial strength. The recent financial crisis placed banking in the eye of the storm. While it taught the world some painful lessons, the crisis also challenged leaders of countries and companies to take some tough strategic decisions.
In the banking sector, I have learnt the focus must be on the fundamentals of capital and liquidity management, minimising the risks inherent in weak assets and ensuring robust capital adequacy, while continuing to serve the needs of clients. No doubt, these fundamentals are as essential for good country governance. Interestingly, these imperatives form the core of Islamic finance that has been around for centuries.
Entrepreneurship
To take advantage of emerging opportunities, it is important for business to be nimble and fast to market. In our hyper-competitive world, it takes a laser focus on customers to be best at serving their needs. Speed, efficiency, and flexibility are keys to making quick decisions and staying ahead of competitors to get the job done.
Dubai and its entrepreneurs are great examples of such qualities in today’s world. Our government leaders strive every day to find new ways to meet the average citizen’s needs. Islamic finance is following suit in innovating progressive approaches that serve the needs of societies and businesses.
Global connectivity
In an increasingly globalised world, inter-connectivity is critical if a business or a country’s economy is to succeed. Dubai has been built in part as an international community, attracting bright minds to live and work here. It has also been built on strong global relationships in business, education, the arts and other disciplines.
In finance, I have seen this first-hand, as my bank continues to assemble a world-class team of finance professionals with a network of influential business relationships to add unique value. As the inter-connectivity of the modern world continues, combining knowledge with enabling relationships will create mutual opportunities, leveraging the continued strength of the UAE and regional economies.
Ideas driven
Unlike some economies of the Middle East, Dubai’s economic engine has been and will continue to be fuelled by knowledge, ideas, and innovation. We have come this far by working with some of the best minds in the world. Clearly, it must be the same for our companies to compete on a global stage.
The world marketplace will be based on innovation and ideas to create value, increase efficiency, and grow businesses. Some companies have named chief knowledge officers. At Noor Bank, we appointed a chief innovation officer as part of our senior management team.
I believe this position is unique in our industry and will drive innovation, whether it is for our customer’s needs — or internally by improving systems and processes. Innovation is also transforming Islamic finance. In the past, the sukuk market was restricted largely to limited time frames. Today, we have perpetual bonds, structured trade finance solutions, issues allowing a mix of debt and equity, and innovations capturing trade flows between the Middle East and Africa, Turkey, the Indian Subcontinent, and Asia.
Ethics and trust
Trust and integrity are critical to the future success of any government or financial institution. The two are inextricably connected. For any Islamic institution, it is not enough to say that it is Sharia-compliant. Islamic values have to be at the centre of everything an Islamic bank or Takaful company does.
The world is crying out for a better way. Islamic finance — with its inbuilt ethical, moral and spiritual values — meets that need.
Taken together, I believe these five concepts form the foundation of a thriving economy, a sustainable financial industry and a healthy society. The Islamic economy, and by extension Islamic finance, isn’t just about the needs and beliefs of Muslims. Dubai’s vision of the Islamic economy transcends geographic, cultural and religious boundaries.
Islamic banks, too, must recognise the crossover appeal of Islamic principles in the world of finance. I am proud and humbled to be chairman of a critical institution at such an important time in the growth of Dubai and the development of the Islamic economy.
— Shaikh Ahmad bin Mohammad bin Rashid Al Maktoum is Chairman of Noor Bank.
