Islamic economy education has tremendous scope

Dubai: Islamic economy education is a broad term that consists of the following categories:

1) Islamic economy instructions, which are delivered by universities, training institutions and professional organisations, and

2) Islamic Economy, which includes Islamic finance, Takaful, Islamic accounting, Islamic law, Islamic management, Islamic governance, Islamic certification, which covers Islamic fashion, Islamic tourism and hospitality, and other relevant sectors.

Islamic economy education addresses the needs of more than 20 per cent of the world’s population either in Muslim countries or in the increasing number of Muslims residing in Western countries such as Australia, the US, Canada, Germany, the UK, France, and parts of Europe.

In terms of distribution, 58 per cent of the Muslim population are in Asia, 23 per cent are in Africa, 17 per cent are in the Middle East, and 2 per cent are in Europe and North America. It is important to note that the population of Muslim countries continues to rapidly expand. The potential of Islamic Economy education is not only limited to Muslims, but also extends to those outside the Islamic faith who hold similar values.

Education plays a crucial role in promoting economic growth and alleviating poverty, both at the local and national level.

In addition, since education is the primary source of knowledge creation, innovative Islamic educational programmes that address the need for cultivation of knowledge and enhancement of skills are necessary in an increasingly competitive market.

There is strong interest in the field of education within the Muslim world.

In the Mena region alone, the education sector has been estimated to be worth $96 billion (Dh352.53 billion) in 2015, of which the GCC region forms a sizeable portion. According to Alpen Capita, in the GCC there is a ‘mismatch’ between skills taught to graduates and the requirements of the local labour market.

As a result, the Ministries of Education across most of the Mena countries have indicated their commitment to the Education for All by 2015. Education, plays a crucial role in driving human development and employees in organisations that are active within the Islamic economy must therefore be competent and possess a broad and comprehensive skill set in order to create sustainable competitive advantage for their economies.

The positive growth indicators previously mentioned show that Islamic economy education is poised to become a significant and sizeable market. While the growth is imminent, there is still much work to be done to attain the objectives for sustainable growth.

Despite the strong growth of the Islamic economy, the provision of Islamic Economy Education must be continuously enhanced in order to meet the growth of the sector. Thomson has reported several challenges such as the need for standardization and compliance, supply chain integrity, human capital deficit, consumer education, global positioning, venture financing and operational excellence.

Education and training must be at the heart of the strategies of universities and governments of the Islamic World.

The Yurizk Global Islamic Finance Education 2013 report examined the growth in demand for Islamic Finance Education. According to the report, 85 per cent of the initiatives are potential contributors towards professional development while only 15 per cent are potential contributors to research and development.

There are about 750 providers of Islamic finance education, around 45 per cent of which are located is South East Asia, 20 per cent in the Mena region, 20 per cent in Europe and 10 per cent in North America and 5 per cent in Africa.

Recent offerings of Islamic economy education in the UAE have been established in line with the initiative of His Highness Shaikh Mohammad Bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, to establish Dubai as the capital of the Islamic Economy.

As a highly competitive and pioneering economy, Dubai has recently announced its latest strategies and initiatives in this regard and the city is poised to take a leadership role in the new era of Islamic economy education.

The Dubai Government is eager to adopt many of the innovations emerging from the Islamic economy education sector.

The establishment of the Dubai Centre of Islamic Banking and Finance (DCIBF) represents a major stride in meeting the training, education and professional development needs of the Islamic banking and finance sector. DCIBF reflects the efforts of HBMSU and DIEDC to make Islamic finance education and training a top priority.

Such strategy rests on the following premises: First, the long-term success of the Islamic economy depends on the quality of its human resources and specific Islamic economy expertise; second, human capital development in the Islamic economy must be a fundamental national priority; third, all advanced economies around the world have taken human capital as an integral part of their efforts to cultivate economic development; fourth, integrating the latest technological advancements in education will cultivate wider accessibility in an affordable and dynamic manner.

It is important to mention that an important challenge facing Islamic economy education is the lack of innovation among relevant institutions both in terms of products and services, as well as its delivery. Institutions that are not innovative will be left behind.

The e-learning market is rapidly evolving and continuously adapts to technological advancements, shifts in customer demands, and evolving learning methodologies.

To succeed, the programmes for Islamic economy education must stay relevant and competitive by using state-of-the-art tools in the delivery of its solutions, products and services.

Prof. Nabil Baydoun, the author, is Vice Chancellor Enterprise & University Advancement at Hamdan Bin Mohammed Smart University (HBMSU).