Webinar with the International Open University (IOU)
The Imperative of Islamic Finance in the 21st Century: Building a Bridge Between Academia and Industry
The International Open University hosted a seminal corporate session featuring Ustadh Usman Malik, an award-winning lecturer and management consultant, to provide critical insights into the contemporary landscape of Islamic finance and the career opportunities it offers. The webinar was designed to bridge the gap between academic theory and real-world industry implementation, emphasizing the profound potential for this sector to grow and foster ethical economic development globally. Ustadh Usman Malik underscored the importance of a unified, passion-driven approach for students and practitioners entering this vital field.
Foundations of an Ethical Economic System
Ustadh Usman Malik’s passion for Islamic finance is rooted in the practical economic leadership demonstrated by the Prophet Muhammad (peace be upon him) as detailed in the Seerah. He highlights the transformative action taken by the Messenger of Allah in establishing the Muslim marketplace in Madinah, an institution founded upon the non-negotiable principles of justice, fair trade, and, crucially, the prohibition of riba (interest/usury) and fraud. This historical context demonstrates that adherence to Islamic finance principles is directly correlated with economic success, noting that some of the Prophet’s companions (Sahaba) became among the wealthiest people of their time by conducting business strictly according to divine guidance.
The presentation posits that while the modern Islamic finance industry is relatively young—with efforts to revive it beginning only in the 1960s and 1970s, making it centuries behind conventional banking—this nascent stage presents immense potential and career opportunities for skilled, dedicated individuals. Ustadh Usman Malik recounts his own academic journey, which involved supplementing his economics degree with independent research to fill the gap left by the scarcity of dedicated Islamic finance courses at the bachelor’s level. His award-winning research focused on establishing the link between the prohibition of riba and the alleviation of poverty and inequality, while stressing the obligatory role of zakat as a pillar for societal and economic development.
A key tenet of Ustadh Usman Malik’s philosophy is the holistic nature of the discipline. He stresses that Islamic finance cannot be studied in isolation. Students must seek comprehensive knowledge of Islam (deen), including the study of subjects like Usul al-Fiqh (Principles of Jurisprudence), to fully grasp the higher objectives of Islamic Law (Maqasid al-Shari’ah). This comprehensive approach ensures practitioners uphold the core ethical finance principles and objectives, rather than simply mimicking conventional models with superficial cosmetic changes.
Strategic Career Development and Professional Growth
For aspiring professionals in the field, Ustadh Usman Malik outlines a three-part strategy for success: strong qualifications, relevant skills, and practical experience.
• Specialisation and Expertise: A crucial insight offered is that possessing mere theoretical knowledge of Islamic finance products (such as Mudarabah or Sukuk) is insufficient for securing a role. The Islamic banking and finance sector operates like any other industry, requiring practitioners to possess a focused area of expertise such as marketing, operations, IT, legal, or relationship management. Ustadh Usman Malik advises students to identify their strengths and passions and then pursue specialization within a functional department of a financial institution.
• Acquisition of Real-World Experience: The concept of gaining experience is framed through the prophetic model, referencing the lessons in patience, perseverance, and leadership the Prophet Muhammad (peace be upon him) acquired during his youth as a shepherd. Similarly, students are strongly encouraged to seek internships or placements—even for short durations or in entry-level customer service roles—to gain invaluable real-world exposure and an understanding of the industry’s inner workings.
• Social Entrepreneurship and Creating Opportunities: A significant message is directed at those in regions where Islamic finance institutions are underdeveloped. Ustadh Usman Malik challenges the mindset of waiting for job opportunities, instead advocating for social entrepreneurship and proactive solution creation. Initiatives in Islamic microfinance, Zakat management, and Waqf (endowments) represent vast areas for development. By taking the leap of faith to establish new, ethical institutions, individuals can become pioneers who meet the unfulfilled needs of their communities.
The Ultimate Objective: Impact and Barakah
Ustadh Usman Malik elevates the professional pursuit beyond material gain, urging students to define a grander vision for their careers—one that focuses on making a lasting global impact and attaining the ultimate pleasure of Allah. He emphasizes that Islam is a complete way of life, and conducting one’s financial transactions and career according to Islamic principles is an act of worship (Ibadah).
Crucially, he introduces the concept of Barakah (divine blessing), noting that it allows a seemingly small amount of halal wealth to go further and have a greater impact than a large amount of wealth acquired without this blessing. In the end, the industry requires a new generation of leaders who possess a dual competency: deep understanding of the deen alongside high-level corporate experience, ensuring that the growth of Islamic finance is both technically proficient and ethically guided. The session concludes with a renewed call to action for students to invest in themselves and maintain consistency and passion in their pursuit of excellence in this noble field.