Graham Burnside attends Responsible Finance and Investment Summit in Zurich
Our Advisory Board Member, Graham Burnside was invited to speak at the RFI Summit in Zurich on 3rd & 4th May 2017, on financial inclusion and accessibility, and efficiency through FinTech. During the session, Graham also discussed whether by opening finance to Muslims, impact investing can have a broader social impact.
Graham is an expert in banking and finance law, specialising in particular in structured finance and capital markets. He is considered the Scotland's leading expert, having structured and documented the first (and so far only) Islamic mortgage products operating under Scots law and the first fully Sharia-compliant commercial real estate financing in Scotland.
The Responsible Finance & Investment Summit (RFI Summit) is an initiative of the RFI Foundation and Swiss Arab Network to build awareness of shared values that can bring socially responsible investing (SRI), environmental, social and governance (ESG) and Islamic finance together to increase their positive impact.
During the Responsible Finance & Investment Summit key stakeholders within responsible finance were brought together to build connections for new growth opportunities and more measurable impact. The RFI Summit played a vital role in connecting representatives from across the responsible finance industry to build on the growing cooperation between SRI, ESG and Islamic finance.
UKIFC Features in IIBI's New Horizon Magazine
The UKIFC features twice in the most recent edition of The Institute of Islamic Banking and Insurance's (IIBI) New Horizon magazine as issued on 4th May 2017.
Please click on the images below to download the articles:
For more information on the IIBI please click HERE.
UKIFC and CMS join forces to drive growth in Islamic finance industry
The Islamic Finance Council UK (‘UKIFC’) and international law firm CMS today announce an innovative partnership to help develop, support and optimise Islamic finance frameworks across the world. The aim is to offer a single, cohesive legal, advisory and capacity building service tailored to help government agencies, regulatory bodies and financial institutions to respond creatively and develop capacity for Islamic finance.
The partnership launches at a time when global Islamic finance assets are expected to rise from $2 trillion in 2015 to $3.5 trillion by 2021 - representing a 12% compound annual growth rate. Islamic banks are likely to be the main driver of this growth, with assets expected to reach $2.7 trillion by 20211.
“With a growing Muslim population, the potential future demand for Islamic finance is huge,” says Shakeel Adli, Head of Islamic Finance at CMS. “By bringing together a unique blend of practitioners who are recognised leaders in the global Islamic finance market, we are able to draw on our collective knowledge and expertise to provide a one-stop shop offering a truly unique and holistic approach to Islamic finance.”
UKIFC and CMS have recognised that the availability and effectiveness of Islamic finance in any given jurisdiction depends on meeting a number of challenges; the two most significant of which are creating robust regulatory frameworks and developing human talent. To effectively engage in Islamic finance, investors, consumers and financial institutions require regulatory clarity. It is also of critical importance that human talent is developed to address the unique challenges which Islamic finance presents.
The UKIFC and CMS partnership will assist jurisdictions to meet these challenges.
“As leaders in our respective fields, we share a commitment to growing the Islamic finance industry,” says Omar Shaikh, Advisory Board Member at UKIFC. “By combining our capabilities, we have created a uniquely comprehensive, best in class Government advisory providing support and guidance for government agencies, regulatory bodies and financial institutions as they look to build their capacity and create enabling legal and regulatory frameworks for Islamic finance.”
The UKIFC was established in 2005 as a specialist advisory and developmental body focused on promoting and enhancing the global Islamic and ethical finance industry. Having contributed substantively to the development of the UK Government’s Islamic finance framework, the UKIFC has been appointed to advise several regulators and government ministries across Africa, Asia and Europe and has developed a proprietary methodology for government policy advisory within a secular context.
CMS meanwhile has extensive experience of successfully delivering Islamic finance regulatory advisory projects in multiple jurisdictions including Kazakhstan and Oman amongst others. Significantly, CMS has a geographic footprint which includes 65 offices spread across 38 jurisdictions. The firm has deep local roots with access to cross-border expertise and strong connections to Governments and associated agency bodies in each of the conventional, Islamic and ethical finance sectors.
“The new partnership between UKIFC and CMS offers a team of passionate and committed Islamic finance experts that genuinely combines legal, finance and capacity building ability that is unlike any other advisory firm,” Omar Shaikh concludes.
1Thomson Reuters State of the Global Islamic Economy 2016/17
UKIFC hosts impact investing round table
The 12th Edinburgh Ethical Finance Round Table once again took place in the offices of Maclay Murray & Spens LLP. Picking up on themes from the previous meeting, the topic was Impact Investment and how its outcomes can best be evaluated.
Amanda Young, who heads the Responsible Investments team at Standard Life Investments, gave the first presentation. Outlining the history of the ethical investment movement over the past 25 years she indicated how this had moved from purely negative screening to an active scrutiny of the social/environment returns from investments alongside the financial ones. Currently the main barrier to larger scale involvement from mainstream investors is the limited size and scale of investment opportunities, but she saw encouraging trends which should help to counter this – government pressure on businesses to report on these issues and at an international level the increasing acceptance of the UN Sustainable Development Goals were examples of important factors. Standard Life Investments’ own approach involves building an “impact stock universe” from its overall “buy” list of around 150 stocks. She emphasised that key factors were measurability and intentionality – evaluation of these is very much a developing process but there is a continuing focus on seeking to refine this.
The second presentation was given by Celia Tennant, CEO of Inspiring Scotland, which deals exclusively with philanthropic impact investment. Celia indicated that their focus was almost entirely on social impact, their process starting from identification of a social need around which they then raise funds and seek to identify a portfolio of the best placed third sector bodies to tackle the issue. The aim of venture philanthropy is to make an impact and share the outcomes and accordingly evaluation and measurement of these is essential, for which they use both internal and external assessors. To date Inspiring Scotland has donated over £100m to the Scottish voluntary sector spread over 300+ organisations.
A general discussion followed, focusing initially on the issue of whether a sufficient scale of qualifying bu
sinesses to allow impact investment to “go mainstream” is likely to emerge. The view on this was cautiously optimistic, pointing to the faster than expected rate of change in for example the development of electric cars and the growth of Green Bonds. Amanda Young did however see a considerable challenge in building platforms which would allow retail investors easy access to impact investment. On the question on measurement there was general recognition that this imposed onerous requirements on businesses but was nevertheless essential for development and signs were that mainstream organisations were increasingly accepting the requirement. There was consensus that continued focus on agreeing common approaches to evaluation and transparency of outcomes was essential and it was noted that the UK is leading internationally on measuring environmental impact.
The meeting concluded with a brief update on the Ethical Finance Hub project from Julian Parrott of Ethical Futures. The main recent development was securing premises at the Edinburgh Business School, Heriot-Watt University. The next crucial step was achieving confirmation of continued financial support from Scottish Government and it was hoped that this would be confirmed within the next month.
Omar Shaikh Participates in UN Event in Turkey
UKIFC Advisory Board member Omar Shaikh was invited to participate in a prestigious panel on Islamic finance and impact investing at the United Nations Development Programme’s (UNDP) Istanbul International Centre for Private Sector in Development's (IICPSD) 7th Bosphorus Summit which took place on 29th November 2016.
IICPSD is one of six UNDP global policy centres with a special mandate to focus on the role of the private sector in development. Recently UNDP IICPSD and IDB established the Global Islamic Finance and Impact Investing Platform (GIFIIP) to support the implementation of the 2030 Agenda for Sustainable Development and its 17 Sustainable Development Goals.
Omar was able to share insights on Islamic finance and social impact while moderating the "Towards an Islamic Finance and Impact investing Ecosystem" panel session. The panel brought together the experience of practitioners and investors focused on scaling up Islamic finance for impact investing. The discussions sought to identify future directions for a global Islamic finance and impact investing business ecosystem in support of the Sustainable Development Goals. Speakers for the sessions were:
- Kıvanç Çubukçu, Project Manager, Kois Invest, Belgium
- Prof. Abdul Ghafar Ismail, Head of Division, Islamic Banking and Financial Economics & Islamic Research and Training Institute, Islamic Development Bank, KSA
- Hussam Abu Issa, Vice President, Salam International, Qatar
- Aamir Abdul Rehman, Managing Director, Fajr Capital, UAE
- Dr. Serdar Sümer, CEO, Aktif Bank, Turkey
- Babur Tolbayev, CEO, Mol Bulak, Kyrgyzstan
- Ufuk Uyan, General Manager, Kuveyt Türk, Turkey
The Honorary Opening Speech was delivered by Recep Tayyip Erdoğan, President of the Republic of Turkey.
UKIFC and ISRA conference on Shariah Goverenance
Deputy Governor of the State Bank of Pakistan and leading international shariah scholars and industry experts convene in London (Oct16)
Archbishop supports shared values discussion at House of Lords
A world leading interfaith initiative aimed at creating a practical ethical financial solution will move a step closer on Monday (24th October 2016) at a private round table to be held in the House of Lords in London. The Church of Scotland and the Islamic Finance Council UK (UKIFC) are convening a unique gathering of faith leaders, parliamentarians, and finance practitioners to agree a shared values framework upon which a financial solution, open to all in society, will be developed.
The joint venture, the culmination of many years of dialogue, was launched earlier this year in response to the systemic failure and non-sustainability of the current financial model that has struggled to recover from the economic, operational and reputational damage caused by the global crisis in 2008/09. By developing a pioneering new model of interfaith engagement the initiative aims to move from dialogue to action by creating a fairer, more socially responsible financial system.
According to the Rev Dr Richard Frazer, convener of the Church of Scotland’s Church & Society Council: “Two of the most important tasks that we face as a society are developing a fairer and more sustainable economy – one which has a passion for equality at its heart – and building stronger relationships across faith communities. This initiative does both and it is hugely exciting to be a part of it.”
The event is the second in a series of three workshops. The first, held in Edinburgh in May 2016, reviewed the theological and philosophical underpinnings of Christianity and Islam in order to identify commonalities. Shared values identified during the discussions included: our role as stewards on a planet with limited natural resources, tackling excess and greed and encouraging moral responsibility.
At the House of Lords workshop on Monday the shared values framework will be reviewed and refined before participants explore the practical obstacles to realising a vision of ethical finance today. Leading asset managers, banks and economists will share their insights on different types of economic models where ethical finance deepens the economy, encourages inclusion and creates positive social impact.
Omar Shaikh of the UKIFC commented: “We are delighted with the positive response received from parliamentarians and practitioners which reinforces the significance of this initiative. Bringing the debate to the heart of London, a leading a global financial centre, sends a strong international message that faith communities can work together for the greater good of society.”
The initiative emerged from the UKIFC Interfaith Ethical Finance Roundtable, attended by the Archbishop of Canterbury Justin Welby, in 2013 and the Church of England continues to take an active involvement.
“The need for a fairer, more ethical banking system has never been more pressing. What emerged clearly in 2013 is that those from faith perspectives have an important contribution to make in creating a shared solution for the industry and the communities that they serve. I look forward to seeing this discussion continue to evolve in the months and years ahead.” Edward Mason, Church of England.
It is expected that the shared values framework, the first of its kind globally, will be announced early next year, informing the development of a viable ethical finance business solution.
For more information contact:
Chris Tait, Islamic Finance Council UK
(m) 07931103573
Rob Flett, Communications Manager, Church of Scotland
rflett@churchofscotland.org.uk
(m) 07764 335793
About the Islamic Finance Council UK
The UKIFC was established in 2005 as a specialist advisory and developmental body focused on promoting and enhancing the global Islamic and ethical finance industry. As a dynamic and forward-thinking not-for-profit organisation the UKIFC’s Advisory Board Members, who provide pro bono support, have defined and evolved the role the organisation plays in making a tangible impact in the global Islamic and ethical finance sectors. Principle service areas are: Advisory, Ethical Finance, Training and Awareness and Thought Leadership.
The UKIFC has been recognised globally for its work in promoting shared values and increasing connectivity between ethical and Islamic finance stakeholders across the UK. For more than 5 years the UKIFC has been leading an award winning debate on ethical finance through a series of events based in Edinburgh.
About the Church of Scotland
The Church of Scotland is Scotland’s national church and is also one of the UK’s largest charities. It serves almost 400,000 members, with more regularly involved in local congregations and our community work. Within the organisation, the Church has around 800 ministers serving in parishes and chaplaincies, supported by professional and administrative staff. The Church has a proud tradition of working to benefit those less well off in society, and campaigns on a range of economic and social welfare issues.
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Digital Banking - Fintech future for Islamic finance
UKIFC Board Members join ADIB CEO at RFi Group digital banking event in Dubai.