GF
Talent drought in war for Islamic banking dominance
25 April 2008
Islamic finance is already hot, and it looks set to reach boiling point, with the Middle East emerging as one of the major players. But a lack of talent could threaten future growth.
In its report ‘Oiling a virtuous banking cycle’, Goldman Sachs predicts that total Islamic banking assets in the UAE will reach $87bn by 2010.
This represents 11.3% of global market share, and an annual growth rate of 28%.
“There are just four cities – Kuala Lumpar, Dubai, Bahrain and London – competing to become a global centre for Islamic finance,” says the report.
The problem is finding people to staff the boom. An Ernst & Young survey revealed that the GCC accounted for more than a third of the Islamic insurance – or takaful – market, but said it could soon stumble if it doesn’t manage to attract talent.
“The biggest challenge that remains is clearly people,” says Sameer Abdi, executive manager at E&Y’s Islamic finance group. “The issue is where to find them and, if we do find them, it then becomes an issue of how best to retain them.”
Russell Adams, managing director of recruiters Akamai Dubai, says Islamic banks are becoming less choosy about specific experience: “As long as people are able to tailor products within the Islamic wrapper then there’s demand for experienced people from western markets.”
The main players in the UAE’s Islamic finance space are Dubai Islamic Bank and Abu Dhabi Islamic Bank, reckons Goldman. First Gulf Bank and Union National Bank are tipped for future growth and the report predicts a swell in new banks upping the ante in the Middle East.
